The Fiji National Provident Fund (FNPF) announced significant growth in its assets for the financial year ending June 30, 2024, reaching $10.6 billion, up from $9.5 billion the previous year. This increase reflects a solid net return on investment of 8.5 percent, allowing the Fund to declare a crediting rate of 8 percent and distribute $572.4 million in interest to its members in July.
FNPF’s Chief Executive, Viliame Vodonaivalu, highlighted that the 11.6 percent growth in total assets resulted from strategic investments, new partnerships, and increasing existing stakes. This demonstrates the Fund’s dedication to enhancing performance and ensuring the financial security of its members.
The total member funds saw an increase of $900 million, amounting to $8.1 billion, marking a 12.5 percent growth year-on-year. Contributing to this success were higher collections from member contributions, despite facing challenges such as the rising cost of living and limited job opportunities.
Vodonaivalu expressed pride in the consistency and growth achieved this year, attributing it to taking advantage of key opportunities. Other financial milestones include declaring an interest rate of 8 percent for the fiscal year, with $2.3 billion paid in interest over the last six years, and the reinstatement of the contribution rate to 18 percent in January 2024.
In terms of membership growth, the FNPF welcomed 28,703 new members while supporting 13,575 exits due to entitlements. Initiatives aimed at improving member experience included expanding membership to infants, introducing a Gift Card initiative to boost retirement savings, and enhancing withdrawal benefits for educational expenses.
Looking ahead, the Fund’s 2024 Annual Report was presented in parliament on December 6 and is set to be discussed in an upcoming Annual Member Forum scheduled for early 2025.
Overall, the results showcase the FNPF’s robust strategy and commitment to serving its members effectively, promising a brighter financial future for its contributors.
Adding a hopeful perspective, the FNPF’s ability to adapt and thrive amidst economic challenges is encouraging for members. As the Fund continues to implement innovative solutions and strategic partnerships, it demonstrates a proactive approach to securing the financial well-being of its members.
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