FNPF’s net return on investment increases to 8.5% resulting in 8% interest payout to members in July

For the 2024 financial year ending 30th June 2024, the Fiji National Provident Fund had an overall growth in assets to $10.6 billion from $9.5 billion in the previous year.

Based on this, FNPF’s net return on investment increased to 8.5 percent, which led to the declaration of a crediting rate of 8 percent and payout of $572.4 million in interest to members in July.

FNPF Chief Executive Officer Viliame Vodonaivalu says the Fund was able to achieve an 11.6 percent growth in total assets through strategic investments culminating in new partnerships, increase in existing stakes and securing new deals.

He says this growth underscores the Fund's commitment to maximizing performance and securing the financial future of FNPF members.

As a result, member funds increased by $900 million, reaching a total of $8.1 billion, reflecting a 12.5 percent year-on-year increase.

This growth was partly driven by higher contribution collections.

Vodonaivalu says despite the challenges, they have been able to increase their asset base through the returns gained from the investments and the members have gained through the interest credited to their accounts.

He says this year has been one of consistency and growth, and despite the challenges posed by the rising cost of living and limited employment opportunities, they have capitalized on key opportunities, which has enabled them to achieve these outstanding results and secure the members’ financial future.

Other key financial highlights are the declaration of the 8 percent interest rate for the fiscal year, with a total of $2.3 billion paid in interest to members’ FNPF accounts in the last 6 years, collaboration with the Government, the contribution rate was reinstated to 18 percent in January 2024, highlighting their support towards members’ retirement savings, a net contribution of $323.2 million, reflecting a return to pre-pandemic trends, with total contributions of $779.8 million, against $456.6 million in withdrawals; additional contributions increased by 106 percent to $81 million, while a 83 percent increase in voluntary contributions resulted in the collection of $27.4 million.

FNPF says its commitment to operational excellence and member-centric initiatives is evident as the membership was extended to infants from birth to encourage early savings accumulation, introduction of a Gift Card initiative to allow members to enhance their retirement savings, approval of a more practical penalty system to enhance contribution collection, extension of the education withdrawal benefit to include laptop purchases and internally recognized professional development courses, pursued agreements with jurisdictions like Australia, New Zealand and Pacific Island nations to allow Fijians abroad to continue contributing to their retirement savings with FNPF, building on the Fund’s continued membership growth, the 2024 financial year recorded 28,703 new members while also supporting 13,575 exits through entitlement withdrawals.

The Fund’s 2024 Annual Report was tabled in parliament on 6th December and will be presented to members during the Fund’s Annual Member Forum scheduled for early 2025.