The Fiji National Provident Fund (FNPF) reported a remarkable increase in its total assets, growing from $9.5 billion to $10.6 billion by the end of its financial year on June 30, 2024. This significant growth translated into a net return on investment of 8.5 percent, prompting the Fund to declare an 8 percent crediting rate and distribute $572.4 million in interest to its members in July.
Chief Executive Viliame Vodonaivalu emphasized that the Fund achieved an impressive 11.6 percent growth in total assets through strategic investments, including forming new partnerships, increasing existing stakes, and closing new deals. He articulated that this advancement highlights FNPF’s dedication to enhancing performance and improving the financial futures of its members.
Member funds saw a notable increase of $900 million, culminating in a total of $8.1 billion, which reflects a year-on-year increase of 12.5 percent. This growth was driven, in part, by higher contributions, showcasing a recovery in the FNPF’s finances.
Vodonaivalu assured that despite facing challenges such as rising living costs and limited job opportunities, the Fund capitalized on strategic opportunities, leading to beneficial results for its members. He characterized the past year as one marked by stability and growth.
Additional financial highlights include the declaration of an 8 percent interest rate for the fiscal year, resulting in $2.3 billion paid in interest to members over the past six years. The contribution rate was reinstated to 18 percent in January 2024, reaffirming the Fund’s commitment to boosting retirement savings for its members.
FNPF also experienced a net contribution of $323.2 million, reflecting a return to pre-pandemic trends, with total contributions amounting to $779.8 million in contrast to $456.6 million in withdrawals. There were increases in both additional contributions—up 106 percent to $81 million—and voluntary contributions—up 83 percent, totaling $27.4 million.
The Fund’s member-centric initiatives stand out, including expanding membership to infants from birth to promote early savings, introducing a Gift Card initiative for retirement savings, and enhancing the withdrawal benefit to cover laptops and professional courses. FNPF has also pursued agreements with Australia, New Zealand, and Pacific Island nations to allow Fijians living overseas to continue contributing to their retirement savings.
In the 2024 fiscal year, FNPF welcomed 28,703 new members while supporting 13,575 exits through entitlement withdrawals. The Fund’s 2024 Annual Report was presented to parliament on December 6 and will be shared with members at the upcoming Annual Member Forum scheduled for early 2025.
In summary, the FNPF’s commitment to growth and member support amidst financial challenges exemplifies a strong forward trajectory for both the Fund and its members’ financial well-being. This focus on strategic investments and member-oriented initiatives not only highlights resilience but also offers hope for continued stability and growth in the future.
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