FNPF $115m net surplus

Good year for growing fund
November 22, 2012 | Filed under: Business | Posted by: newsroom
By RACHNA LAL

The Fiji National Provident Fund (FNPF) has recorded a net surplus of $115 million for the financial year ended June 30, 2012.

This is a major milestone as the figure has been achieved even after paying out $127 million to pensioners, who opted for a lump sum withdrawal.

This announcement was made by FNPF chief executive, Aisake Taito, during a press conference yesterday.

Mr Taito said: “This has been achieved through a strong performance from our investment portfolio.

“The structural changes implemented in the last 12 months have built a strong foundation to create value for our members and inspire confidence in the future of the fund.

“We will build on this as we embark on 2013 and continue with the rest of the reform agenda.”
Mr Taito said the key focus would be operational compliance to the FNPF Decree 2011 and to improve all internal systems and to be customer-oriented to provide superior services to members.

Income
He revealed the fund’s investment income was $249.9 million in 2012 compared with $238.8 million in 2011.

“The increase in income is largely because of high returns from our investments, both domestic and off-shore,” Mr Taito said.

Meanwhile, total member’s balance grew by $200 million to $3.2 billion from $3 billion in 2011.
Mr Taito said interest paid to members in 2012 was five per cent resulting in the distribution of $139 million to members’ accounts.

Contributions
Mr Taito said contributions collected increased by $13.8 million from $303.5 million in 2011 to $317.3 million in 2012.

“However, withdrawals for this period increased from $309.5 million to $318.2 million because of increased housing assistance and flood assistance withdrawals,” he said.

“Therefore, there were more withdrawals than contributions collected from members resulting in a negative contribution of $0.9 million.”

Investment and future
Mr Taito said the fund had recorded an increase in its offshore investment to $212 million from $114 million.

“This is as we continue to diversify the investment portfolio,” he said.

Mr Taito indicated as far as 2013 was concerned, the fund would focus on completing the Natadola land lots and start selling them.

“We will also begin construction on the Momi project because as an investor, we need to recommence our investment to reach completion,” he said.

The amount to be invested in the Momi project, which has already failed once under former developers, Mr Taito said has not been finalised yet.

New pensions scheme
Mr Taito also mentioned that under the new age-based pension scheme which came into effect on March 1, out of 10,000 pensioners validated, 7000 opted to reinvest $168 million into the new pension scheme.

“The pension reform was a success with 70 per cent of the pensioners opting to rejoin as pensioners indicating their continued confidence in FNPF.