How Is Money Invested?
The investments of FHUT are governed by the Trust Deed. The specific framework for the investment strategies used by the Manager is contained in the Investment Policy Statement that is approved by the Trustee.
Authorised Investments
The authorized investments for the FHUT are fixed income securities such as government and statutory body bonds, shares of listed and unlisted companies, properties and short term money market securities such as Reserve Bank of Fiji (RBF) notes and promissory notes. This includes overseas investments as well, which the Manager may pursue with the approval of the RBF.
A maximum of 10% of the portfolio value that may be invested offshore. The FHUT’s exposure in any one single investment should not exceed 20% of the portfolio value. Trustee approval needs to be obtained for any investment exceeding 10% of the portfolio value.
Investment Portfolio
The total market value for the FHUT portfolio as at 30th June 2017 was $96.22 million, as represented in the pie chart below:
Income and Growth Strategy
The investment strategy used by FHL FML for FHUT is guided by these 3 key principles:
1. Prudent Investment Approach
The FHUT will exercise prudence at every step of the investment process. A rigorous approach is taken in identifying investments, conducting due diligence on potential investments, making investment decisions and monitoring those investments in order to add
value on behalf of unit holders.
2. Continuous Investing in income-generating investment
To continue to generate dividend returns to unit holders, the Manager will continue to look for investments that are able to provide consistent dividend returns for unit holders.
3. Active investing in high growth potential investments
The Manager will continue to explore investment opportunities where FHUT portfolio can grow in value in the medium to long term. This will enable unit holders to realize capital growth on their investments in the future.
The key to managing investments with high growth potential will be to ensure that the FHUT plays an active role in the management and monitoring of the investment to unlock value for unit holders.