5 per cent interest
$297m for 389,986 members
A TOTAL of $297 million was expected to be credited to the accounts of 389,986 members of the Fiji National Provident Fund by yesterday evening.
This is the result of the announcement by the FNPF oncrediting interest rate of 5 per cent for the financial year ending June 30, 2021.
The acting CEO Viliame Vodonaivalu during a press conference yesterday said, this rate was approved after the Fund Actuary determined that it would not place undue stress on the FNPF solvency requirements.
“This confirmation is crucial and is required under our law therefore a total of $297m will be credited to 389,986 members’ accounts this evening,” he said.
“What each member gains will depend entirely on their average balance during the year but they must have a positive FNPF balance.
“Matching the rate paid out in 2020 this percentage is still very competitive given the constricted economic environment.”
FNPF will continue to strategies and ensure it would maximise its return even though investment opportunities were limited.
Mr Vodonaivalu said the fund also continued to receive steady return from the government bonds which was a major contributor towards the positive performance for the financial year 2021.
“The other main drivers for investment performance for the year were the banking sector investment in BSP and HFC and again from the sale of Energy Fiji Ltd shares and a fair value gain on Vodafone Fiji Ltd. “Our investment in tourism has been impacted but it makes up a small portion of our investment portfolio.
“The 5 per cent interest rate reaffirms that the FNPF is the best choice for your long term investments.”
The fund has paid more than $1.5 billion in interest for its members in the last five years and over $2.4b over the last 10 years.
“This is a reflection of the fund’s prudent investment decision which has resulted in the growth of the fund’s portfolio to where it is today.
“So from tomorrow members can see how much their balance has grown by downloading the MyFNPF app on their mobile through Google play store or Apple App Stores.
“As well as the other digital service, member’s portal and myFUND SMS.”
Mr Vodonaivalu had stated that the end of the financial year was always an anticipated time for many of its members mainly because of the interest rate declared by the FNPF board based on their financial performance during the year.
“The fund was not spared from the challenges that the local and global economies face from early 2020.
“The coronavirus pandemic, both the first and especially the second wave has had a crippling effect on businesses and continues to affect individuals and families.”