The Fiji National Provident Fund (FNPF) has reported significant growth in its assets, increasing from $9.5 billion to $10.6 billion by the end of its financial year on June 30, 2024. This growth propelled the net return on investment to 8.5 percent, allowing the Fund to declare an 8 percent crediting rate and distribute $572.4 million in interest to members in July.
FNPF Chief Executive Viliame Vodonaivalu remarked on the impressive 11.6 percent surge in total assets, attributing this success to strategic investments, new partnerships, and enhancing existing stakes. He emphasized that this growth reflects the Fund’s dedication to maximizing performance while securing the financial future of its members.
The total member funds increased by $900 million, reaching $8.1 billion, representing a substantial year-on-year growth of 12.5 percent, driven partly by higher contribution collections. Vodonaivalu acknowledged that despite challenges such as rising living costs and limited job opportunities, the Fund capitalized on key opportunities, achieving remarkable results for its members.
Other notable financial highlights include a total interest payout of $2.3 billion to members’ accounts over the past six years. The government reinstated the contribution rate to 18 percent in January 2024, contributing to a net increase of $323.2 million in contributions, which outpaced withdrawals of $456.6 million substantially. Additionally, there were significant increases in both additional and voluntary contributions.
Vodonaivalu also highlighted the Fund’s member-centric initiatives, such as extending membership to infants to encourage early savings, introducing a Gift Card initiative, and implementing a more practical penalty system for contributions. The Fund has also expanded the education withdrawal benefit to cover laptops and professional development courses. Furthermore, Fijians living abroad can continue contributing to their retirement savings with FNPF, which strengthens membership. During the 2024 financial year, the Fund welcomed 28,703 new members and supported 13,575 exits through entitlement withdrawals.
The Fund’s 2024 Annual Report was submitted to Parliament on December 6 and will be presented to members at the Annual Member Forum early in 2025.
In summary, the FNPF is showcasing resilience and growth, adapting to economic challenges while prioritizing the financial wellbeing of its members. This positive trend is encouraging for both current and prospective members, highlighting the Fund’s effective management and commitment to enhancing retirement savings.
This remarkable financial growth and strategic approach can inspire confidence among FNPF members, reinforcing the importance of investing and saving for the future.
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