A portion of minors’ funds in terms of lease monies held by the iTaukei Land Trust Board (TLTB) will be diversified and invested into insurance to ensure sustained growth and stability for beneficiaries.
TLTB interim CEO Solomoni Nata said the TLTB Board of Trustees had successfully transitioned those investments from HFC Bank to the Unit Trust of Fiji (UTOF) in June last year.
“Despite this positive move, there is a recognized need to further diversify the investment portfolio to mitigate risks, secure the well-being of minors within a 10-year timeframe, and target an average return of 7 per cent,” Mr Nata said in a statement.
He said their observations had indicated a significant number of minors, upon receiving lease proceeds at the age of 18, “often lack the maturity to allocate these funds effectively for long-term sustenance, self-development, and growth in various dimensions of diversification”.
“To address this concern, TLTB has engaged in discussions with BSP Life Insurance to introduce diversification options for selected minors who possess sufficient balances to accommodate insurance packages.
“The insurance policies will be held under the individual minors’ names, with TLTB serving as the custodian until the policies mature.”
Mr Nata said this adjustment would allow the assignment of insurance policies to minors once they reached the age of 18.
