The Samoa National Provident Fund has recorded a record $59.8 million profit for the 2019-2020 financial year, according to its annual report.

Chairman of the S.N.P.F. and the Ministry of Finance Chief Executive Officer, Leasiosiofaasisina Oscar Malielegaoi hailed the successful year in the annual report.

Among the highlights in the annual report was the interest for SNPF members which increase by close to 10 per cent to $43.2 million.

“The board declared a record interest for members this year of 9.1 percent to the value of $64.5 million tala and $43.2 million of that amount was paid in cash to members," stated the report.

“The net operational profit was $59.8 million a 23 per cent from the previous year’s net operational profit.

“The fund reported an increase of 16 per cent from its investment income contributing to yet another record-breaking operational profit figure of $59.8 million tala.

”In spite of the measles crisis and the uncertainty associated with the onset of the COVID-19 pandemic, SNPF pushed forward not only with its investments but also with concessionary assistance for our members and for the affected business community.” 

The annual report added that the operating and financial performance members' contribution collected during the year topped $99.9 million, which was an increase of 20 per cent when compared to $83 million in the previous year. 

“Despite global economic downturn experienced in our country from COVID-19, the Fund had a strong financial year demonstrated by the 17 per cent growth in reported profits. The net asset value has grown by 6 per cent to S794 million at year end.” 

The Chairman said the fund continues to foresee enhancement in its financial performance and position. 

“We will continue to monitor our expansionary efforts relative to our investments offshore and lending products. 

"These efforts will be tempered by a heightened consideration of the effects of the COVID-19 pandemic and the expected global economic shock that is a consequence of it.”

In a tough and challenging economic environment, the Board was nevertheless able to declare interest of 9.1 per cent for members, added the annual report. 

“The cost to the Fund was $64.5 million tala — the greatest ever such undertaking in the 47 years of the Fund.”  

There are 33,182 active members at the end of the year under review, a decrease compared to the previous year of 35,052. 

“However, this year there has been a decrease in the number of active members partly due to the effects of the COVID19 on our economy.

"Closures of borders for Samoa meant a decline in our tourism industry thus resulting in loss of employment for much of the workforce in the private sector, mainly in that industry.” 

The annual report stated that members’ contributions collected during the year was $99.9 million, which was an increase of 20 per cent when compared to $83 million in the previous year. 

This increase in contributions collected can be attributed to better compliance measures taken by management as well as the increase in public sector salaries as a result of the general wage increase approved by Cabinet. 

Furthermore, as of 1 July 2019, the minimum member and employer contribution rate increased from 7 per cent to 8 per cent. 

“The total amount of withdrawals made during the year was $57.2 million, an increase of 4 per cent compared to $55.0 million in the previous years.”