FNPF records $359.5 million net profit for FY17

The Fiji National Provident Fund announced a net profit of $359.5 million for the 2017 financial year ended 30 June 2017. This is an increase of 8.4% 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%. This enabled the Board to declare an interest rate of 6.35% 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 $480.6million in 2016. The hike in contribution collection is largely due to improved compliance, use of the Employer Portal and increased economic activity.

Total withdrawals stabilized 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.

Chief Operating Officer Jaoji Koroi said these results were indicative of FNPF’s commitment protecting members’ long-term interests. He also added that FY17 was a very active year operationally with the following highlights for the year:

• Completion & opening of the 250-room Fiji Marriott Resort in Momi Bay;
• Completion of the new My FNPF Center on Grieg Street;
• Shift to the new Members Services Center in Suva;
• Opening of the Valelevu Agency;
• On-going roll out of the Employer Portal and launching of new e-channels;
• Completion of the organization restructure; and
• The reduction of overall risk rating from moderate to low

“The successful completion of all the FNPF reform programs 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,” said Mr. Koroi.

“The record financial performances are a clear indication that the reforms has 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 has capitalized on technological advancements to enhance services and will continue to explore innovative opportunities for the benefit of its members.

To ensure members continue to be empowered, a Member Advocacy team has been established to increase awareness and member understanding and behavior 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.”

“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.”

For further information, please contact Risiate Biudole on 9998764 or RisiateB@fnpf.com.fj