Unit Trust of Samoa Management Ltd's profit drops by $78,628

The Unit Trust of Samoa’s (U.T.O.S.) Management Limited's profit for the year ending June 2018 dropped by $78,628 compared to the previous year.

The drop in U.T.O.S Management Ltd's profit is revealed in its Annual report for the financial year in question.

“The profitability of the company continues to fall compared to previous years mainly due to depreciation associated with the new Unit Registry System and new Senior Officers that were approved by the board last year,” the report reads.

“The net profit for this financial year is $332,383 compared to $411,011 for last year.”

According to the report, the total expenses for U.T.O.S. Management increased by 19 per cent, relative to 2017.

“The increase in total expenditures is due to depreciation costs resulting from new developments within the information technology department such as the new registry system and servers to cater for unit holders’ records.

“Personnel costs also increased during this financial year as three new positions were approved by the board to assist with the workload as the number of unit holders continues to increase.

“The Board also approved the Trustee Fee to be paid by the Management Company instead of the Trust as was the practice since establishment.”

The report also noted communication costs doubled, compared to 2017 due to the Online Registry System that enables unit holders to login to check their balances.

“This reflects our commitment to provide top class and reliable service to unit holders by taking advantage of new developments within the I.C.T. industry.”

In terms of income, the total income for the financial year 2018 increased by 8 per cent compared to the previous year.

“This was largely driven by the Manager’s fee received from U.T.O.S. Trust,” the report reads.

“The Manager’s Fee remains at 2 per cent of Net Assets of the Trust, and due to the increase in the Trust’s Net Assets, the fees continue to increase.

“The Board and Management continues to monitor this trend to ensure both the Trust and Management operates prudently.

“Interest earned on term deposits with local commercial banks and exit fees from every unitholder redemptions are the other main revenue streams.”

According to the report, the results for the financial year ending 30 June 2018 reflects the company’s investment in systems, services to unit holders and development of employees.

“During the year, the management and staff have continued to manage and operate the Unit Trust of Samoa (U.T.O.S.) Trust, in accordance with the Trust Deed, Central Bank of Samoa Prudential Guidelines as well as internal policies and guidelines approved by the Board and Trustees.

“The number of our employees increased from nine to twelve during the year.”

U.T.O.S. (Management) Limited is a government state owned enterprise (S.O.E.) that has been tasked to manage U.T.O.S. (the Trust). U.T.O.S. (Management) is responsible for the trading of units, enticing Samoan nationals to buy units, and prudently investing unitholder funds with the goal of managing a diversified portfolio of investments.

U.T.O.S. (Trust) is a private trust owned by the unitholders with its assets entrusted to a Trustee Company which holds in trust the funds of the unit holders.

*This story has been updated to highlight that U.T.O.S. Management is separate from U.T.O.S. Trust.



Bg pattern light


Subscribe to Samoa Observer Online

Enjoy access to over a thousand articles per month, on any device as well as feature-length investigative articles.

Ready to signup?