A positive trend is emerging as investors demonstrate a growing inclination to reinvest their dividends rather than cashing them out. The Unit Trust of Fiji (UTOF) has praised this shift, viewing it as a robust indicator of rising investor confidence within the country.
At the recent dividend declaration announcement, UTOF’s chief executive officer, Vilash Chand, noted an influx of new investors entering the market, many of whom are choosing to reinvest their dividends. He highlighted the increasing financial discipline among the region’s population, which has encouraged more individuals to save.
Chand explained that while investors can opt to receive their dividends directly into their bank accounts, a significant number have preferred to accumulate their dividends through reinvestment. “The promising trend we are noticing at the moment is a lot of investors are actually turning to reinvest their dividends, which is a good sign,” he stated, emphasizing that this behavior contributes to even greater potential dividends in the future.
Current figures indicate that roughly 90% of UTOF investors are choosing to reinvest their dividends, a notable increase from 65-70% just five years ago. This substantial rise demonstrates the growing confidence investors have in UTOF and its returns.
UTOF chairwoman Lavinia Kaumaitotoya spoke to the increasing financial literacy among Fijians. “As a person sitting here and watching these numbers rise, the dollars coming in, I can confidently say that we have a new generation of Fijians that are beginning to save, that are beginning to understand that financial security is very important,” she remarked.
Recently, UTOF announced an 8.30% return for its 108,000 account holders, which includes around 4,000 new unit holders registered within the 2025 financial year, many of whom are everyday families seeking stability for themselves and future generations. Kaumaitotoya also dismissed previous notions that Fijians lack the ability to save, asserting that today’s Fijians are indeed taking steps to secure their financial future.
This upward trend signals not only an encouraging shift in investor behavior but also illustrates the potential for a financially savvy generation capable of fostering a secure economic environment for years to come.
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