FAQs

This section attempts to anticipate and answer some of the potential questions that will be asked by interested individual and institutions about Fijian Holdings Unit Trust (FHUT).

1. What is a unit trust?
A unit trust (or managed fund) is an investment vehicle that pools the funds of many individual investors into a larger fund. This larger fund is then invested by a professional manager in line with the investment objectives of the fund. As an investor, you can expect to receive returns in proportion to the amount of units that you hold at the time of the dividend declaration.

2. What is a ‘unit’?
Units are issued to investors when they invest their funds into a unit trust (on managed fund). These units represent your share of the total net assets in the fund.

3. What is Fijian Holdings Unit Trust (FHUT)?
It is a diversified income and growth managed fund (or unit trust) licensed by the CMDA. FHUT funds are pooled and invested by the fund manager, FHL Fund Management Limited (FHL FML), to enable unit holders investments to grow in value and earn income over time.

4. Who can invest in FHUT?
Anybody can invest in FHUT as long as the legal requirements outlined in the Requirements page are met.

5. What is the minimum investment in FHUT?

The initial minimum investment is 50 units. The total cost of this investment will be calculated by multiplying the current entry price by the minimum initial amount: e.g. 50 units x $0.80 = $40.00

6. How long do I have to keep my investment in FHUT?
There is no defined minimum investment period however unit trusts are considered medium to long term investment products. This means that it is recommended that you leave your investment in the fund for a minimum of 5 years. Please note that you may incur a loss on your investment if you redeem your units before the recommended period.

7. Is there a minimum balance of units that must be maintained?

The minimum balance of units that must be maintained in order to qualify for dividends in FHUT is 50 units as at the closure of our units register on 31st October, 29th February and 30th June annually

8. How do I buy units in FHUT?
To buy units in FHUT the investor/s must first read the FHUT Prospectus then complete the application form at the back of this Prospectus. A receipt will be issued to the unit holder upon receipt of funds. FHUT units can be purchased from our head office on the Ground Floor, Ra Marama, 91 Gordon Street, Suva or from any of our service providers namely Merchant Finance Limited branches, FHL Stockbrokers Ltd, FijiStock Brokers, Kontiki StockBrocking and all Post Fiji outlets Fiji wide.

9. What are the benefits and risks of investing in FHUT?
Some of the benefits and risks of investing in FHUT are clearly stated in the Benefits/Risks section of the website.

10. What is FHUT’s dividend distribution policy?

FHUT policy is to pay dividends to its unit holders that hold 50 units or more every four months on 21st November, March and July each year.

11. How are unit prices determined?
The unit price is determined using the following formulas:

  • Entry Unit Price = [(Net Asset Value of the Trust + Transaction Cost) + Entry Fees] /Units in Issue
  • Exit Unit Price = [(Net Asset Value of the Trust – Transaction Cost) – Exit Fees] /Units in Issue

12. How does FHUT process my application?
Within 15 working days from the close of the creation, unit holders will receive confirmation of their investment in the form of unit certificates and a statement.

13. How do I buy more units?
Unit holders can buy more units at any point in time from our head office or any of our service providers at the prevailing entry price. There is no limit to the number of units that you can buy.

14. Can I reinvest my dividends to buy more units?

In completing the FHUT application form, unit holders can indicate if they want their dividends to be reinvested. This means that instead of paying the dividends to you every four months, we will purchase more units and top up your existing account in FHUT. A statement showing proof of this purchase will be sent to the unit holders.

15. What is FHUT’s withdrawal notice period?
Once the Manager receives the properly completed withdrawal form, there is a period of 5 working days for the application to be processed from the day the withdrawal application is received.

16. What are the Manager’s fees and charges?
All the Manager’s fees and charges are detailed on the Fees & Charges page.

17. Can I transfer my units?
Yes, FHUT units can be transferred by its unit holders to any individual or entity provided all requirements stipulated by the Manager are met. The Manager has decided not to charge any transfer fee on transfers made during the life of this prospectus.

18. What information will the manager provide?
The manager will calculate and provide to the unit holders and the public the price of one FHUT unit on a fortnightly basis through the media.

19. Who do I contact with my questions and/or complaints?
Any questions or complaints can be directed to the Manager or the Trustee or the Capital Markets Development Authority.

20. What implications does the Financial Transactions Reporting (FTR) Act 2004 have on FHUT?
The FTR Act imposes on all financial and designated non-financial institutions and professionals in Fiji certain obligations aimed at preventing and detecting money laundering and terrorist financing. Some key measures that covered entities are required under the Act are: know your clients’ i.e. identify clients and verify their identity, monitor clients transactions, maintain proper client records, report certain transactions to the Financial Intelligence Unit and implement appropriate internal controls and systems to protect FHUT from being used for money laundering and terrorist financing purposes.

Current Unit Prices

Entry Price: $0.82
Exit Price: $0.78

FHUT Prices Valid from:
(01/10/2017) to (15/10/2017)