The Fiji National Provident Fund (FNPF) has reported a substantial increase in its asset base over the financial year ending June 30, 2024. The Fund’s total assets grew from $9.5 billion to $10.6 billion, reflecting an impressive overall growth rate of 11.6%. The Chief Executive of FNPF, Viliame Vodonaivalu, attributed this success to strategic investments, new partnerships, and enhancements in existing stakes.
As a result of this growth, FNPF declared a crediting rate of 8% on member accounts, leading to a payout of $572.4 million in interest for July 2024. Member funds saw a significant increase of $900 million, reaching a total of $8.1 billion, which represents a year-on-year growth of 12.5%. The rise in member contributions played a key role in this upward trend.
Vodonaivalu highlighted that despite facing challenges like rising living costs and limited job opportunities, the Fund effectively maximized performance through strategic asset management. This dedication to maintaining and growing member contributions led to a net contribution of $323.2 million, marking a return to pre-pandemic trends. The Fund also experienced a considerable increase in additional contributions, which surged by 106% to $81 million.
The FNPF has implemented various member-centric initiatives aimed at enhancing retirement savings. Notable efforts include extending membership to infants for early savings encouragement, introducing a Gift Card initiative, and enhancing contribution collection through a revised penalty system. Furthermore, agreements with jurisdictions such as Australia and New Zealand enable Fijians abroad to contribute to their retirement savings.
For FY 2024, FNPF welcomed 28,703 new members while facilitating 13,575 exits through entitlement withdrawals. Vodonaivalu emphasized the organization’s commitment to operational excellence and the financial security of its members. The Fund’s Annual Report for 2024 was presented in parliament on December 6 and will be discussed at the upcoming Annual Member Forum in early 2025.
This positive financial outlook for the FNPF not only reflects its effective management strategies but also provides hope for members seeking a secure financial future. As the world continues to navigate economic uncertainties, FNPF’s robust growth and innovative initiatives promise a more stable pathway for retirement savings for all Fijians.
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