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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 info@gilbert.com.fj.


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 www.cmda.com.fj 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 gilbert@connect.com.fj or call telephones (679) 3396427 or (679) 9921427.

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