The Fiji National Provident Fund (FNPF) concluded its financial year on June 30, 2024, reporting significant growth in its total assets, which increased to $10.6 billion from $9.5 billion the previous year. This remarkable growth was complemented by a net return on investment of 8.5 percent, allowing the FNPF to declare an 8 percent crediting rate and distribute $572.4 million in interest to its members in July.
Chief Executive Viliame Vodonaivalu highlighted that the Fund achieved an impressive 11.6 percent increase in total assets through strategic investments, fostering new partnerships, boosting existing stakes, and securing new deals. He emphasized that this growth reflects the Fund’s dedication to enhancing performance and securing the financial well-being of its members.
Member funds grew by $900 million, totaling $8.1 billion, and this 12.5 percent year-on-year increase was partly attributed to higher contribution collections. Despite facing challenges such as rising living costs and limited job opportunities, the FNPF was able to expand its asset base and provide favorable returns to members.
Vodonaivalu noted that fiscal year 2024 was marked by consistency and growth. Key financial highlights included an 8 percent interest rate declaration for the fiscal year, a total of $2.3 billion in interest payments to members over the last six years, collaboration with the government to reinstate the contribution rate to 18 percent, and a significant net contribution of $323.2 million, illustrating a return to pre-pandemic trends.
Additionally, the Fund recorded a 106 percent increase in additional contributions, reaching $81 million, while voluntary contributions soared by 83 percent to $27.4 million. Vodonaivalu also mentioned initiatives geared towards enhancing member benefits, such as extending membership to infants for early savings, introducing a Gift Card initiative for retirement savings, and approving a practical penalty system to improve contribution collections.
The FNPF continues to strengthen its global links by pursuing agreements that enable Fijians abroad to contribute to their retirement funds, thus enhancing membership growth. In the 2024 financial year alone, the Fund welcomed 28,703 new members while facilitating 13,575 exits through entitlement withdrawals.
Looking ahead, the Fund’s 2024 Annual Report was tabled in parliament on December 6 and will be presented to members at the Annual Member Forum set for early 2025.
In conclusion, the FNPF’s impressive financial results and strategic initiatives not only reflect its resilience in a fluctuating economic climate but also promote a hopeful outlook for the continued growth of retirement savings for its members. The proactive measures taken by the Fund position it well to support its members’ financial futures amidst ongoing challenges.
Leave a comment