Investment Objective & Approach

The principal role of the FNPF is to manage and invest members' savings for their retirement. FNPF's broad investment objective is to maximize long-term investment returns, subject to constraints aimed at containing fluctuations in returns over shorter-term periods, to ensure an appropriate balance between risk and return.

The Fund attempts to achieve returns, after fees in excess of increases in inflation by a minimum 1% per year, rolling over a three-year period.

Investments are selected in order to:

1.Provide a wide range of investment opportunities in various asset classes so as to allow for diversification and cover a wide risk/return spectrum
2.Maximize returns within reasonable and prudent levels of risk;
3.Provide returns comparable to returns for similar investment funds or compared to market rates; and
4.Control administrative and management costs.

Eligible Investments

The following list represents the range of investments that the Fund will consider and which shall be authorized investments for the Fund:
•Call Accounts and Certificates of Deposits
•Commercial Papers and ST securities
•Bonds (Sovereign & Corporate)
•Shares (Stocks)
•Mortgages
•Property
•Offshore Investments