The Unit Trust of Fiji (UNOF) has turned its attention towards regional markets with plans well underway to establish a presence in Samoa and Vanuatu.

The expansion plans also include new offices in Nadi and Labasa, which is a move the trust’s manager business development Sakiusa Bolaira says is to cater for a growing demand.

Offshore investments are also part of the trust’s future plans but it has so far been cautious. Mr Bolaira said this was due to a “volatile” off-shore market.

He made the comments while presenting the trust’s 2016 annual report to the standing committee on social affairs, which was chaired by Assistant Minister for Women, Children and Poverty Alleviation Veena Bhatnagar.

“We are happy to report that there is a lot development in this area (regional expansion),” Mr Bolaira said.

“In terms of investment, that is part of our plan (and) we’ve got approval from the Reserve Bank of Fiji – around $5 million – to go offshore but the market can be very volatile; especially the Australian market.”

The trust is also exploring the advancement of its Information and Communication Technology infrastructure (ICT), a trend being seen across the commercial sector.

Finance and investment

Mr Bolaira reported that confidence in the institution was growing, presenting statistics that showed its investor base had increased from 16,111 in 2015 to 17,306 a year later.

Statistics also showed the trust’s investment portfolio had increased from $125.9m in 2015 to $137.9 million in 2016, an 8.7 per cent rise.

This included a $7m investment into Vision Investment Limited and $6.25m additional capital into HFC bank, of which the trust is a 25 per cent shareholder.

The trust paid out $4.6m in dividends which, according to the statistics, was equivalent to 6.1 cents per unit, a 0.2 cent increase from 2015.

However, Mr Bolaira said that a substantial withdrawal of units led to the decline in the  trust’s investment portfolio from $17.5m to $12.3m.

Mr Bolaira said the challenge for the trust came in the form of competition from commercial banks.

Feedback:  sheldon.chanel@fijisun.com.fj