Investment

One of the most compelling reasons for you to invest is the prospect of not having to work your entire life! If you are a small business owner, farmer, fisherman or low income earner, UTOS would give you the opportunity to diversify your investment risk while providing you with a good return.

Investing your money in UTOS is investing for a longer term (preferably, at least three (3) years) in the hope of making more money than you would receive from interest added to your savings with a commercial bank.

Placing your money in the bank is best for you if you want to access your money during short periods (1 to 12 months) or at unpredictable times (such as for “faalavelave”, school fees or monthly bills). In addition, saving your money in the bank is best if you are not prepared to take risks.

There are benefits of investing with UTOS which gives more reason why you should invest.

  1. Affordability – The initial investment in UTOS can be as low as 50 units.
  2. Liquidity – As a Unit holder you can withdraw your funds invested in the Trust by simply selling back your units to the Manager.
  3. Access to a wide range of investments – Once you buy units in UTOS, you will also gain exposure to multiple investments.
  4. Tax-Free Dividend – Dividends paid through Unit holders are tax-free
  5. Capital Growth Opportunities – In addition to Dividends, units may increase in value, in line with the overall performance of the Trust’s investments. Therefore your initial investment can grow.

There are also some important risks for you to consider before you investing.

  1. Policy Risk – there is a risk that the current Government’s policy may change and future Governments may decline to transfer further shares in SOEs to UTOS.
  2. Withdrawal Risk – This is the risk of losing money because of a lower repurchase price (compared to the price at which you bought units) caused by fluctuations in the value of UTOS’s assets.
  3. Market Risk – This is the risk that unexpected economic or political conditions could have a negative impact on the returns of all investments in a particular market.

It is important to note that not all the risks can be foreseen. As you can see from the above, investing in UTOS carries risks and it is important to note that not all risks can be foreseen. Unit holders are advised to seek professional advice relevant to their personal circumstances before investing.