Over 30,000 iTaukei minor investors reaped the benefits of last Friday’s dividend announcement from the Unit Trust of Fiji (UTOF), thanks to a partnership between UTOF and the iTaukei Land Trust Board (TLTB).
UTOF chairperson Lavinia Kaumaitotoya declared a dividend of 3.75 cents per unit for UTOF’s Income & Growth Fund and an annualized dividend of three percent for its Income Fund, amounting to a total of $5.77 million and $562,772, respectively.
As Fiji’s largest unit trust, UTOF boasts over 60,000 unit holders across the country, including iTaukei landowners under 18 years old.
“It’s important to note that our unit holders represent a diverse cross-section of society, including over 30,000 minor investors under 18, whom we manage in collaboration with the iTaukei Land Trust Board,” Ms Kaumaitotoya stated.
In June of the previous year, TLTB transferred part of the funds it held in trust for iTaukei landowners under 18 from HFC Bank to UTOF to diversify the portfolio.
“To understand how lease monies for minors (landowners below the age of 18 years) are managed by the iTaukei Land Trust Board, we need to understand the facts and the law governing the Equal Rent Distribution Policy,” TLTB explained during the move.
Currently, 32,941 individual iTaukei landowners under 18 hold lease entitlements valued at $69 million. These funds are invested by the TLTB board on behalf of the minors and will be disbursed, including dividends, once they come of age.
UTOF’s diverse investments span private and public companies such as HFC Bank, Fiji Gas, Flour Mills of Fiji, and South Sea Towage Ltd. Recently, the trust increased its stake in Amalgamated Telecom Holdings through a share-for-unit swap with the Unit Trust of Samoa and acquired a 10 percent share in SUN Insurance Company Ltd through a private placement before SUN’s Initial Public Offer, which is open until July 31.