The Fiji National Provident Fund (FNPF) has reported significant growth in its financial performance for the year ending June 30, 2024, with total assets rising to $10.6 billion from $9.5 billion the previous year. This growth corresponds with an impressive net return on investment of 8.5%, allowing the Fund to declare an 8% crediting rate and distribute $572.4 million in interest to its members in July.
FNPF Chief Executive Viliame Vodonaivalu attributes this success to strategic investments, new partnerships, and the expansion of existing stakes, resulting in an overall asset growth of 11.6%. He emphasized that this positive trend reflects the Fund’s ongoing commitment to maximizing its performance and ensuring a robust financial future for its members.
The increase in member funds by $900 million—bringing the total to $8.1 billion—represents a solid 12.5% year-over-year growth, aided by higher contributions and effective investment returns. Vodonaivalu noted that despite external challenges, including rising living costs and limited job opportunities, the Fund has leveraged key investment opportunities to produce favorable results, thereby securing its members’ financial stability.
Additional highlights from the FNPF’s latest report include the declaration of an 8% interest rate for the fiscal year, totaling $2.3 billion in interest paid to members’ accounts over the past six years. The Fund also reinstated a contribution rate of 18% in January 2024, further supporting members’ retirement savings. Contributions reached $779.8 million, while withdrawals totaled $456.6 million, marking a positive net contribution of $323.2 million. The Fund witnessed a notable 106% increase in additional contributions and an 83% rise in voluntary contributions.
Vodonaivalu reiterated the Fund’s dedication to operational excellence and member-centric initiatives. Among these are the extension of membership to infants from birth to promote early savings, the introduction of a Gift Card initiative for retirement savings, and agreements with countries such as Australia and New Zealand to allow Fijians abroad to contribute to their FNPF accounts. The 2024 financial year saw the addition of 28,703 new members and supported 13,575 exits through entitlement withdrawals.
The FNPF’s 2024 Annual Report has been presented to parliament and will be shared with members during the Annual Member Forum scheduled for early 2025.
In summary, the FNPF’s strong financial growth and strategic initiatives highlight its ongoing commitment to provide financial security for its members, even in the face of economic challenges. This positive trajectory not only reinforces the Fund’s vital role in the lives of Fijians but also suggests a hopeful future for retirement savings in the region.
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