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This blog is brought to you by Gilbert & Samuels Company Limited, a financial advisory services and consulting company based in Suva, Fiji.
To contact the authors of this blog, please call telephones (679) 3342719, (679) 3544897 or e-mail

Thursday, April 26, 2007

Unit Trust of Fiji Performance

Unit Trust of Fiji's (UTOF) returns fell drastically over its financial year ended 30 September 2006. For that period, UTOF recorded :
  • dividend yield of 4.70%;
  • capital growth return of 1.61%; and
  • a total return of 6.31%.

This was a substantial reduction from its performance recorded over the 2005 financial year when it registered :

  • dividend yield of 4.67%;
  • capital growth return of 9.01%; and
  • a total return of 13.68%.

UTOF has said attributed the dismal 2006 results to the increase in official interest rates by the Reserve Bank of Fiji which it said resulted in a decline in value of its government bond portfolio. That reduction, according to UTOF, led further to reduction in UTOF's unit prices.

The decline in share price/market value of various shares listed on the South Pacific Stock Exchange which contributed a negative effect on UTOF's investment portfolio.

Being professional fund managers, one would have expected a bit more diligence from UTOF. Investors in UTOF would be best placed to now question what steps the fund will take if interest rates will continue to rise to avoid a similar result occurring in future. On the other hand, UTOF may be best advised to look at reducing such risks by diversifying its investments and invest overseas.

Read a press release issued by UTOF in the Fiji Times today, Thursday, 26 April 2007, and check the CMDA Annual Reports at for UTOF's returns over the past years.

Note : Anyone that wants investment advice can contact our company, Gilbert & Samuels Company Limited, for assistance. To contact us, e-mail or call telephones (679) 3396427 or (679) 9921427.

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