A promising trend is now being noticed with investors not cashing out on their dividends but instead, are reinvesting it into their current accounts.
And the Unit Trust of Fiji (UTOF) has hailed this move saying it is a “good sign” and speaks volume of investor confidence in the country.
During the announcement of UTOF’s dividend declaration last week, chief executive officer Vilash Chand said they had witnessed that there were a lot of new investors coming into the market, and also many were reinvesting their dividends.
He said a lot of new investors were registering with UTOF because there was “a lot of financial discipline now among our regions”.
“They have a capacity and capability to save some dollar, and they have been coming to us for that,” Mr Chand said in response to a question from this newspaper.
He added while there were options available for investors to exercise when it came to their dividends – dividends can be paid out to their bank accounts, most opted to accumulate their dividends to their current account by way of 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,” Mr Chand.
“It means you are accumulating your dividends into your investments and you’re getting better dividends the following year.
“Percentage wise, I think we are knocking around 90 per cent of our investors who are opting to reinvest their dividends .
“If I can put it into context, five years back, the number used to be around 65 to 70 per cent.
“So that increase in interest of having a reinvestment option, this shows the confidence the investors have in our fund and the return we provide.”
UTOF chairwoman Lavinia Kaumaitotoya said people were now becoming educated financially.
“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,” Ms Kaumaitotoya said.
Last week, UTOF declared a 8.30 per cent returns for its 108,000 account holders.
Of those 108,000, a total of 4000 were new unit holders registered within the 2025 financial year, of which 3200-3600 (80-90 per cent) were everyday moms and dads, and children.
Those everydsay moms and dads, including grandparents and villagers are among what has been described as the new generation of Fijians who are beginning to understand the importance of financial security and are now saving and investing for themselves, their children and grandchildren.
Ms Kaumaitotoya had also dispelled the negativity that surrounded the perception that Fijians could not save, saying Fijians today are saving.
