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.
The following list represents the range of investments that the Fund will consider and which shall be authorized investments for the Fund:
â€¢Call Accounts and Certificates of Deposits
â€¢Commercial Papers and ST securities
â€¢Bonds (Sovereign & Corporate)