FNPF Achieves $331.6 Million Net Profit for 2016

The Fiji National Provident Fund today announced a net operating profit of $331.6 million for the financial year ended 30 June, 2016, an increase of $67 million, compared to last year’s restated figure of $265.1 million.

The Fund’s investment income grew by 6.8% to $331.2 million compared to $310.7 million in 2015.

Consolidated return on investment measured in accordance with internationally accepted practice and net of all operating expenses, was 6.9% compared to 5.9% in 2015. The board declared an interest of 6.25% for the year resulting in the
distribution of $239.5 million to members’ accounts.

Announcing the audited results, Chief Operating Officer Mr Jaoji Koroi said the continued demonstration of the Fund’s improved performance reinforced FNPF’s role as the social and economic anchor for Fiji.

“Our performance illustrates that the Fund is in a strong position to continue to invest and grow our members’ hard-earned retirement savings especially as we celebrate our 50th anniversary this year,” Mr Koroi said.

“Whilst the operating performance may be overshadowed by the activities and payout of $275.5 million for the Tropical Winston assistance, it also demonstrated the financial strength of the organization and the operational capabilities of our

Mr Koroi said the processing and injection of around 3 per cent of the Gross Domestic Product provided the much needed stimulus for economic activity and helped rebuild confidence in the Fijian economy, by allowing FNPF members to
help themselves and their families recover from the damage sustained from TC Winston.

“The achievements for the year should help build confidence from our stakeholders and project the Fund firmly in its journey for the next 50 years.

“Against this backdrop, I am pleased to report the following:

  • Total assets increased to $5.1 billion from $4.9 billion in 2015
  • Members’ balance grew by 3.1 per cent to $4.4 billion from $4.2 billion last year despite a payout of $275.5 million for TC Winston withdrawal assistance
  • Investment portfolio increased from $4.8 billion to $5.0 billion.
  • Contributions grew by 11.2 per cent to record $480.6 million reflecting improved enforcement and compliance
  • An interest of 6.25 per cent was credited to members on 30 June 2016 resulting in the distribution of $239.5 million.
  • Total withdrawals exceeded 240,000 applications, where 182,561 applications were for TC Winston withdrawals
  • Offshore investments for 2016 was $83.1 million, aimed at diversifying the investment portfolio;
  • Active members grew by 5.6 per cent to 406,065
  • Employers totaled 10,646 compared with 9,770 for 2015

“The achievements provided a renewed focus on our vision – securing your future, as well as realigning us to our core business, which is to offer financial and social security for our members’ retirement,” Mr Koroi said.

“We will continue to strive to operate with the highest integrity to provide assurance to our members and stakeholders through robust governance, processes and operations.

“It also reflects our aspirations to be the leading superannuation firm in the region committed to delivering quality, relevant and excellent service to our members,” he said.

Mr Koroi also highlighted the change in the financial statements presentation from defined benefit fund to a defined contribution fund to reflect the closure of the Supplementary Fund as a result of the pension reforms undertaken in 2012.

“An important feature of the defined contribution fund is that retirement is dependent upon the amount of contribution and the performance of investment vehicles utilized.

“This change will bring forth a stronger focus and emphasis on the fiduciary role of the Board in the matter of ethical and transparent handling of member business. This means that our members’ interest will remain paramount at all times.”