Trust pays dividend despite difficulties

UNIT Trust of Fiji has paid out $3.5 million in dividends to its members despite the difficulties in the first six months of 2020, according to CEO Vilash Chand.

He said the trust was able to generate returns from its portfolio which enabled them to pay dividends.

“So one of the things we actually have is our portfolio is diversified, not necessary the portfolio has to be in one particular industry or certain class,” said Mr Chand.

“Given COVID has an impact on the economy and the global environment as well, but because our portfolio was in some of the sectors or some of the industries which were not directly affected by COVID hence they were able to pay dividend to us and we managed to pay to our members.”

Mr Chand said fortunately for UTOF it didn’t have investments in aviation or tourism-related activities which felt the brunt of COVID-19.

“The investments are diversified into different sectors like equities, government-guaranteed bonds we have got bank instruments, we have got property investments and then of course we have cash at bank which looks after our liquidity.

“The good return was coming from the equity market and where we have invested the likes of HFC Bank. We own 25 per cent HFC Bank.”

Mr Chand said the trust had investments in ATH group, consumer goods suppliers such as RB Patel, Fiji Gas as one of its subsidiary companies, South Sea Towage and Marsh and McLennan Fiji to name a few.

“The value of the portfolio is sitting above slightly $F200 million which is also again diversified if you look at the investor base, our investors could be a child, mums and dads, we got groups, association, mataqali and corporates.”

He added the trust had Vanuatu and Samoa on board and these two countries had directly invested to the fund with a value of $F22 million.

The total number of members for UTOF was said to be about 25,000.