NATION

Strong Fund Investment Performance Nets $359.5 Million Profit For 2017

The Fiji National Provident Fund (FNPF) announced a net profit of $359.5 million for the 2017 financial year (FY17) ended June 30, 2017. This is an increase of 8.4 per
18 Nov 2017 11:55
Strong Fund Investment Performance Nets $359.5 Million Profit For 2017

The Fiji National Provident Fund (FNPF) announced a net profit of $359.5 million for the 2017 financial year (FY17) ended June 30, 2017.

This is an increase of 8.4 per cent from the 2016 profit of $331.6 million and has been attributed to a strong performance of the Fund’s investment.

Return on investment, net of expenses and after solvency requirements was 6.8 per cent. This enabled the Board to declare an interest rate of 6.35 per cent for members, which led to the distribution of $270 million to member accounts on June 30th this year.

In the last five years, FNPF has credited more than $1 billion in interest to members.

The Fund also achieved a record contribution collection of $546.2 million compared with $480.6 million in 2016. The hike in contribution collection is largely due to improved compliance, use of the Employer Portal and increased economic activity.

Total withdrawals stabilised to $280.2 million compared with the 2016 figure of $566.1 million, which includes the TC Winston assistance of $275.5 million.

Total assets grew from $5.1 billion to $5.7 billion; with total members’ balances at $4.9 billion from $4.4 billion.

The Fund’s chief operating officer, Jaoji Koroi, said these results were indicative of FNPF’s commitment protecting members’ long-term interests. He also said that FY17 was a very active year operationally with the following highlights for the year:

Completion and opening of the 250-room Fiji Marriott Resort in Momi Bay;

Completion of the new My FNPF Centre on Grieg Street;

Shift to the new Members Services Centre in Suva;

Opening of the Valelevu Agency;

On-going roll out of the Employer Portal and launching of new e-channels;

Completion of the organisation restructure; and

The reduction of overall risk rating from moderate to low.

“The successful completion of all the FNPF reform programmes during the year is also a testament of the resilience of the FNPF team, and it is only appropriate to acknowledge and thank them and their families for their commitment and support,” Mr Koroi said.

“The record financial performances are a clear indication that the reforms have built a sound platform, improving operational efficiencies and placing FNPF on solid financial and governance foundations.

“The Fund is now in a much stronger position to transform and face the challenges of the future, especially the increasing expectations from all our stakeholders.”

Mr Koroi said the Fund had capitalised on technological advancements to enhance services and would continue to explore innovative opportunities for the benefit of its members.

To ensure members continue to be empowered, a Member Advocacy team was established to increase awareness and member understanding and behaviour towards retirement savings and inculcate a culture of savings.

“Our members are demanding better and efficient ways of engagement, better returns from investments and more transparency in our dealings,” Mr Koroi said.

“FNPF will continue to transform our people and use systems to allow us to thrive under these challenges and exceed the expectations of our stakeholders.”

Feedback:  jyotip@fijisun.com.fj

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