Benefits & Risks


As an investor, some of the benefits of investing in the Fijian Holdings Unit Trust are:

1. Convenience
The Fijian Holdings Unit Trust Manager will manage your funds for you once you put your money in the unit trust. The manager invests your funds, monitors and manages the portfolio of investments on a day-to-day basis and maintains records. This saves you
considerable time and effort.

2. Affordability
The FHUT units are affordable for most investors. Furthermore, you will need only 100 units to start your investment; therefore your initial investment can be as little as around $77 (if the entry unit price is 77 cents). For any further investments, the Fijian Holdings Unit Trust allows you to purchase any number of units.

3. No Capital Gains Tax

Capital gains are subject to tax in Fiji but there is no capital gains tax on any capital gains you make when you sell your units with us, unless you are in the business of trading in securities. This however may be subject to change in the future.

4. Professional Expertise
The Fijian Holdings Unit Trust Manager is made up of a team of professionals that manage your investments for you. These professionals have the time, expertise, access to information and industry knowledge which will be beneficial to investors.

5. Diversification
The Fijian Holdings Unit Trust invests in a diverse range of asset classes. This diversification reduces the risk that your investment will be adversely affected if one asset class or product encounters problems. It means that you can usually achieve more consistent returns and reduce your risk.

6. Market Access
The Fijian Holdings Unit Trust pools unit holders funds and therefore is able to invest in a broader range of investments, including those in overseas markets. Many individual investors cannot afford to invest in such a broad range of investments. Imagine trying to invest in property (which may cost thousands of dollars), shares and bonds, both in Fiji and overseas, at the same time! In other words, for many small investors, the Fijian Holdings Unit Trust provides more opportunities to diversify their investments.

7. Regulatory Protection
The Fijian Holdings Unit Trust must comply with the Unit Trust Act Cap 228, 1978, the Capital Markets Development Authority Act 1996 and other regulations which seeks to ensure that the unit trust is managed prudently and fairly and that the interests of investors are protected.

8. Liquidity

As a unit holder with Fijian Holdings Unit Trust, you can easily withdraw your funds simply by selling back units. The notice period for withdrawals is usually 5 working days. There maybe circumstances where this might not be possible, for instance where it is not in the interest of all unit-holders.



Like any other investment, there are risks associated with investing in a unit trust. To assess whether a unit trust is suitable for your investment objectives and your investment timeline, you need to understand these risks and how they may impact on FHUT investment portfolio.

In investing terms, risk indicates the potential gain or loss associated with investing over time. All investments involve varying degrees of risk. Generally, higher returns means higher risk. From an investor’s perspective, for a given level of return, it is preferable to have less risk than more risk.

Specific Risks
While there are many factors which may impact the performance of share, property, fixed interest or cash investments, below is a summary of some of the major risks that exist when investing in unit trusts.

1. Market risk
This is the risk that the value of the FHUT portfolio will change due to movements in market factors.

Minimization Strategy
FHUT invests in different markets to minimize this risk.

2. Currency Risk
Currency risk is the chance that foreign currencies may change in value relative to the Fiji dollar. This risk is not relevant to FHUT as it does not invest offshore at the current time although it has an approved allocation.

Minimization Strategy
If FHUT does invest offshore, it will invest in economies that are well developed and have stringent monetary policy that won’t affect the value of it’s currency.

3. Performance risk
This risk relates to the performance of the investment which FHUT has invested. The return on a particular investment, such as a share or bond is affected by the performance of the issuer of the investment.

Minimization Strategy
Different investments (cash/shares/bonds/property) tend performance differently under the same
operating environment. Therefore, FHUT at all times will try to have different types of investments in its portfolio.

4. Liquidity risk
This is the risk that FHUT will not be able to facilitate its unit holders redemption request.

Minimization Strategy
FHUT aims to maintain a buffer fund in liquid assets at all times to meet expected normal redemptions. Under the Trust Deed, the Manager, with the concurrence of the Trustee, may suspend the redemption of units for such time as may be necessary to realise sufficient liquid funds to meet any unusual redemption requests.

5. Data risk
This is the risk of losing information including unit holder’s account details even though there is dual system storage of a hard copy filing system and electronic database.

Minimization Strategy
FHL FML always ensures confidentiality and security of all unit holders information. We have also recently developed a new database system to store more information, conduct daily backups of electronic system and has developed a Disaster Recovery Plan.

6. Operational risk
Operational risk is defined as the risk arising from the Trusts and its related entities business functions and from the practical implementation of the Trustee and Manager’s strategy for growing the Trust.

Minimization Strategy
FHL FML has developed an operations manual to deal with all operational processes in line with necessary regulations. The Manager in consultation with the Trustee has developed a three year strategic plan and annual KPIs to ensure performance of the Trust. The Manager also conducts third party due diligence on new investments.

7. Legal risk
Legal risks refer to the risk of being legally non compliant due to changes in Government and Regulators current policies and regulations.

Minimization Strategy
FHL FML has an independent compliance officer who reports directly to the Manager Financial Markets and the Compliance Committee. The Manager monitors changes to regulations for compliance and implementation of market best practices.

8. Interest rate risk
This is the risk borne by interest bearing assets such as loans and bonds due to the changes in interest rate.

Minimization Strategy
Through its investment policy, FHUT aims to balance its portfolio through short term deposits and long term loans.

9. Credit risk
This refers to the risk of losing investment funds due to companies we have provided short term loans defaulting on their repayments of principal or interest or both.

Minimization Strategy
FHUT conducts thorough due diligence on any investments it makes, ensures that there are
guarantees on the these investments by principal directors or holding companies, limit the amount that is given as loans and implement certain conditions to allow FHUT to collect the funds.

It should be noted that risk cannot be completely eliminated, even through diversification.
The appropriate risk-return combination will depend on your financial objectives. For more information, it is advisable to seek advice from a licensed FHUT representative or licensed investment adviser.

Current Unit Prices

Entry Price: $1.14
Exit Price: $1.09

FHUT Prices Valid from:
(16/11/23) to 30/11/23)