The Fiji National Provident Fund (FNPF) has marked a significant milestone at the close of its financial year on June 30, 2024, reporting an impressive total asset growth from $9.5 billion to $10.6 billion. As a result of this robust performance, FNPF declared a net return on investment of 8.5 percent, leading to an interest payout of $572.4 million to members in July, with a crediting rate set at 8 percent.
FNPF’s Chief Executive, Viliame Vodonaivalu, credited the Fund’s success to effective strategic investments, the cultivation of new partnerships, and the expansion of existing stakes. He emphasized that this growth exemplifies FNPF’s commitment to enhancing its performance and safeguarding the financial well-being of its members.
The fund balance attributable to members surged by $900 million, reaching a total of $8.1 billion, which constitutes a 12.5 percent increase compared to the previous year. This growth was partially fueled by higher contribution collections. Vodonaivalu acknowledged that despite prevalent challenges, such as rising living costs and limited job prospects, the Fund has successfully broadened its asset base, providing significant returns to its members.
In terms of overall financial health, the FNPF highlighted key metrics including the declaration of an 8 percent interest rate for the fiscal year, totaling $2.3 billion paid to members over the last six years. The reinstatement of the contribution rate to 18 percent in January 2024 underlines a commitment to enhancing retirement savings, noted with a net contribution of $323.2 million, reverting to pre-pandemic trends.
Additional highlights include a remarkable 106 percent increase in additional contributions to $81 million, and an 83 percent rise in voluntary contributions, totaling $27.4 million. Vodonaivalu further mentioned several initiatives designed to foster member engagement, such as extending membership to infants to promote early savings, the launch of a Gift Card initiative for enhancing retirement savings, a new penalty system to bolster contribution collections, and an enhanced education withdrawal benefit.
FNPF also made strides to facilitate contributions for Fijians residing abroad, entering agreements with countries like Australia and New Zealand to support continued retirement savings. In the financial year 2024 alone, FNPF gained 28,703 new members, while 13,575 exited the Fund through entitlement withdrawals.
Finally, the FNPF’s 2024 Annual Report was presented to parliament on December 6 and will be shared with members at the upcoming Annual Member Forum in early 2025.
This positive trajectory for the FNPF amidst economic challenges showcases their dedication to their members’ financial futures and sets a hopeful tone for continued growth in the years to come.
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