Dividend Return & Growth Return

Fijian Holdings Unit Trust (FHUT) is an income & growth fund where potential investors are advised to invest for a minimum term of 3 years or more. Income is the dividend that FHUT is distributing on a triennially basis (every 4months) and the Growth is the capital gain that an investor earns from selling their units at a price higher than their initial purchase (buying) price.

Dividends (income) are paid on every 21st of March, July and November, respectively and it is calculated based on the number of units in the account.

For example, if an investor by the name of Mr. Naka invested $50. From this $50, Mr. Naka will acquire a total of 43 units (50 divided by $1.14 as the current entry price). In a year, Mr. Naka did not do any top ups (deposit more units into the account), therefore; Mr. Naka’s dividend will be calculated as: 43 units multiply by 3% (estimated dividend return) which is equals to $1.29 (43 x 3% = $1.29).

If at the end of Mr. Naka’s 1st year of investment the prices change to:
$1.22 as an entry price
$1.17 as an exit price

Then Mr. Naka’s capital gain (growth) will be calculated as 43 units multiply by $1.17 which is $50.31. Hence, Mr. Naka’s capital gain (growth) is $0.31, and dividend is $1.29 which comes to a total return of $1.60

It must be noted that both dividend (Income) & capital gain (growth) are tax exempted.

*Disclaimer: Present performance doesn’t guarantee future performance