The Fiji National Provident Fund (FNPF) has reached a significant milestone, managing total assets amounting to $10.6 billion, with member funds constituting $8.1 billion, according to General Manager for Business Transformation Millie Low. During her testimony before the Parliamentary Standing Committee on Social Affairs, she underlined the Fund’s accomplishments for the financial year ending June 30, 2024, while also addressing the challenges of member participation.
As of June 30, the FNPF had approximately 423,000 members, but only 264,000 were active, defined as having made at least one contribution during the financial year. Among these active members, just 14,100 were voluntary contributors from the informal sector, while the Fund supports about 8,488 active employers and around 7,800 pensioners.
The FNPF represents a remarkable 35 percent of Fiji’s financial system, only surpassed by the banking sector. In terms of economic impact, the Fund’s assets equate to 78 percent of Fiji’s gross domestic product (GDP), reflecting its robust financial position and investment performance.
Ms. Low detailed that the Fund’s investment portfolio, predominantly held in Fiji, exceeds $10 billion. With 58 percent of assets in defensive investments, this strategic approach has allowed FNPF to credit an average annual interest rate of 6.95 percent to its members’ accounts over the past five years. She emphasized the Fund’s commitment to providing consistent, stable returns while contributing to the broader economic development of Fiji.
FNPF’s strong financial footing can be attributed to strategic investments and membership growth, areas highlighted in recent reports. For instance, Chief Executive Viliame Vodonaivalu noted substantial achievements acknowledging an increase in total assets and member funds, as well as the declaration of an 8 percent crediting rate for the fiscal year, resulting in a payout of $572.4 million in interest payments to members.
As the FNPF continues to implement strategies designed to enhance member engagement and financial literacy, the focus remains on fostering long-term financial security for its contributors. Such initiatives are not only optimistic for the future of the Fund but also aim to positively impact the financial well-being of all FNPF members.
With the recent presentation of its 2024 Annual Report to Parliament, the FNPF is set to further discuss its performance and strategies at the upcoming Annual Member Forum in early 2025, underscoring its enduring dedication to the financial security of Fiji’s workforce.
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