The Fiji National Provident Fund (FNPF) has reported impressive growth, with its assets increasing from $9.5 billion to $10.6 billion at the close of the financial year on June 30, 2024. This growth has resulted in a net return on investment rising to 8.5 percent, leading to an 8 percent crediting rate for members and the distribution of $572.4 million in interest.
FNPF Chief Executive Viliame Vodonaivalu attributed this achievement to strategic investments, the formation of new partnerships, and strengthening existing stakes in various ventures. He emphasized that the Fund’s growth highlights its dedication to enhancing performance and securing a stable financial future for its members.
Total member funds saw an increase of $900 million, reaching $8.1 billion, a significant 12.5 percent year-on-year growth, mainly driven by higher contribution collections. Despite facing challenges such as rising living costs and limited job opportunities, Vodonaivalu noted that the Fund managed to bolster its asset base effectively, benefiting its members through credited interest.
Additional financial insights reveal that over the last six years, $2.3 billion in interest has been paid into member accounts. The Government collaboration led to the reinstatement of the contribution rate to 18 percent as of January 2024, supporting retirement savings growth. Contributions totaled $779.8 million compared to $456.6 million in withdrawals, reflecting a net contribution of $323.2 million.
FNPF is also committed to enhancing member services, having recently extended membership to infants from birth to promote early savings, introduced a Gift Card initiative for retirement savings enhancements, and improved contribution collection penalties. The Fund’s reach has expanded internationally, allowing contributions from Fijians living abroad.
For the financial year 2024, a total of 28,703 new members joined, although 13,575 exited through entitlement withdrawals. The Fund’s Annual Report for 2024 was presented in parliament on December 6 and will be shared with members during the upcoming Annual Member Forum in early 2025.
This growth trajectory not only reflects the effectiveness of FNPF’s strategies but also positions it positively for continued success, ensuring that members’ financial futures remain secure amidst various economic challenges. The ongoing initiatives to engage members and encourage savings reflect a proactive approach that can inspire confidence in the Fund’s operations and long-term viability.
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