The Fiji National Provident Fund (FNPF) reported significant growth in its assets for the financial year ending June 30, 2024, rising to $10.6 billion from $9.5 billion the previous year. This increase is highlighted by a 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 noted that the Fund’s success is attributed to strategic investments, including new partnerships and expanding existing ones, which contributed to an impressive 11.6% total asset growth. He emphasized the organization’s dedication to enhancing performance and ensuring members’ financial well-being.
In total, member funds grew by $900 million to reach $8.1 billion, marking a 12.5% year-on-year increase, driven primarily by higher contributions. Despite challenges such as rising living costs and restricted job opportunities, the Fund has effectively leveraged key opportunities to yield favorable results for its members.
Key highlights include the declaration of an 8% interest rate for the fiscal year, with a cumulative $2.3 billion paid in interest over the last six years. Additionally, the contribution rate was reinstated to 18% in January 2024, boosting retirement savings. The net contribution amounted to $323.2 million, indicating a recovery to pre-pandemic levels, alongside total contributions of $779.8 million compared to $456.6 million in withdrawals.
Further enhancing member experience, Vodonaivalu announced extended services, including early membership for infants to promote savings, the introduction of a Gift Card initiative to bolster retirement savings, and a revised penalty system to improve contribution collections. The Fund also expanded withdrawal benefits and established agreements with countries such as Australia and New Zealand to facilitate continued contributions from Fijians living abroad. The financial year also saw the addition of 28,703 new members, alongside support for 13,575 exits through entitlement withdrawals.
Looking ahead, the FNPF’s 2024 Annual Report has been submitted to parliament and will be presented to members at the Annual Member Forum scheduled for early 2025. This positive trend in growth and member engagement reflects the Fund’s commitment to its members and their future security. The successful strategies implemented by FNPF provide hope for continued stability and growth, ensuring that members are well-supported in their retirement planning.
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