U.T.O.S. net assets increase to $106 million
The Unit Trust of Samoa [U.T.O.S.] has recorded a significant increase of its total net asset for the 2019 financial year, which went from $75.6 million the previous year to $106 million.
The increase was highlighted in the annual report for the Financial Year 2018-2019 which has been endorsed by the U.T.O.S. Management Ltd Board Chairman Afoa Kolone Vaai and Director Magele Arthur Penn.
A spike in the unitholders’ funds as well as additional security in the investment funds has been credited for the $30.4 million increase in its total net asset.
“This is driven by an increase in unitholder funds and additional securities to the investment portfolio,” states the annual report.
“The Trust continues to promote its benefit while disclosing the associated risks as an investment alternative for Samoans and at the same time appraising potential opportunities to be included in the investment portfolio.”
Also highlighted in the report is the total income increase to $1.1 million while total expenditure has dropped significantly by $3.3 million.
“The reduction in expenditure was a direct impact of savings from interest costs payable on borrowings and also from the write back of the provision for expected credit loss following the positive review of the lending portfolios.”
The U.T.O.S. Management Ltd says they are confident that the management is able to control costs and continue to find high yielding investments to further sustain this performance.
“The Unitholders Equity recorded a 42 percent increase from $69 million from last financial year to $98 million for this year,” added the U.T.O.S. Management Ltd.
“This is equivalent to a total of 65 million units issued and fully paid. It is a demonstration of unitholder confidence and increased awareness by the general public to choose U.T.O.S. as their preferred investment vehicle.”
The report further states that the return on unitholders investment remains competitive in the market and is higher compared to returns offered by similar local financial institutions.
“The trust has been able to sustain its annual dividend payout together with constant growth in unit value.
“A dividend distribution of 10 sene per unit was declared on 28 June, 2019 representative of 6.06 per cent dividend return coupled with 5.77 per cent appreciation in unit value meant that the unitholders were able to reap 11.83 per cent total return for this financial year a slight increase from the 11.66 for the previous financial year.”
The U.T.O.S. Management Ltd says the financial year in review set some remarkable milestones with respect to the growth in the number of unitholders and also in the volume of units traded.
“The Trust started in its first year with 200 unitholders and after consistent efforts to promote the Trust we close this financial year with 2,702 unitholders compared to the 2,116 total reported in the prior year.”