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FNPF Reforms Showing Positive Results

The Fiji National Provident Fund has been put under a lot of scrutiny especially following the implementation of the FNPF Reforms in 2012. And rightly so! After all, they are
09 Sep 2014 07:22
FNPF Reforms Showing Positive Results
L-R: Ilimotama Jese, Kolinio Sivoki and Narendra Rao.

The Fiji National Provident Fund has been put under a lot of scrutiny especially following the implementation of the FNPF Reforms in 2012.

And rightly so! After all, they are handling funds of all working Fijians for which they are the custodians.

The FNPF recorded a net surplus of $356.4 million for the year ended June 30, 2014, a significant increase of 21 per cent compared to $293.4 million the previous year.

The fund had started with only 46,000 members and an asset portfolio of $30,000. Today, it has grown to 395,246 members and an asset value exceeding $4.5 billion.

In terms of contributions, total amount collected was $375.7 million averaging $31.3 million per month.

This was an increase of nine per cent on the previous year’s collection of $343.1 million.

Just one look at these figures and we can see the improved performance of our only superannuation fund.

The chairman, Ajith Kodagoda, pointed out the fund achieved this growth and consistent record of success by managing its different investments judiciously and expanding through a series of strategic acquisitions, alliances and partnerships over the years.

“In an ever changing market place, we have continued to succeed because of our proven ability to adapt and change and execute investment strategies to ensure value to our members as our number one priority,” he said.

In a bid to create sustainable value for members, the fund has focused on short-term performance as well as medium-term goals and long-term vision

But despite this marked step-up in the fund performance, the board is not being complacent.

It does note that significant investments in the long-term drivers of growth need to be made which will take time to materialise.

This includes systems support (IT Upgrade) and People Development and Research.

The return from these investments is expected to strengthen the fund’s business structure and prepare it for a much sharper focus on performance and delivery.

This is an important stage of the FNPF business reorientation as it continues to reshape the business to address the fundamental changes taking place.

This has been described as the year when the fund began the transition from addressing fundamental sustainability issues to driving our strategy for future growth in value.

Without losing our focus on the present, Mr Kodagoda said they were quickening their pace as they moved into the future.

To sum up, all this points out that whatever mechanisms are being followed by the current board and management are working.

By delivering the results, the reforms show they have worked out well.

Feedback:  rachnal@fijisun.com.fj

 




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