The Fiji National Provident Fund (FNPF) has announced significant growth in its financial year ending June 30, 2024, with total assets increasing to $10.6 billion from $9.5 billion in the previous year. This growth has led to a net return on investment of 8.5 percent, enabling the Fund to declare a crediting rate of 8 percent and distribute $572.4 million in interest to its members in July.
FNPF Chief Executive Viliame Vodonaivalu highlighted that the Fund’s total assets grew by 11.6 percent, attributed to strategic investments, new partnerships, and increased stakes in existing ventures. Vodonaivalu emphasized the Fund’s dedication to enhancing financial performance and ensuring a secure financial future for its members.
Member funds saw a remarkable increase of $900 million, totaling $8.1 billion, representing a 12.5 percent year-on-year growth, largely driven by higher contributions. Despite external challenges, including the rising cost of living and limited employment, the Fund has capitalized on key opportunities to yield these impressive results.
Additionally, the Fund has achieved several financial milestones, such as an 8 percent interest rate declaration and a robust total of $2.3 billion paid in interest to members’ accounts over the past six years. In January 2024, the contribution rate was reinstated to 18 percent, showcasing ongoing support for members’ retirement savings. The Fund reported a net contribution of $323.2 million, a return to pre-pandemic trends, with contributions totaling $779.8 million, outpacing withdrawals of $456.6 million.
Vodonaivalu noted that the FNPF has implemented member-centric initiatives, including extending membership to newborns to encourage early savings, introducing a Gift Card initiative for retirement savings, and revising the penalty system to improve contribution collection. The Fund is also advancing educational benefits and pursuing agreements with countries such as Australia and New Zealand to facilitate contributions from Fijians abroad.
In the 2024 financial year, the Fund welcomed 28,703 new members while also processing 13,575 exits through entitlement withdrawals. The 2024 Annual Report was presented in parliament on December 6 and will be shared with members at the upcoming Annual Member Forum in early 2025.
Overall, the FNPF’s growth and strategic initiatives point towards a hopeful financial future for its members, reflecting the organization’s commitment to operational excellence and enhancing retirement savings for all its clients.
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