[File Photo]

The iTaukei Land Trust Board of Trustees, acting on behalf of landowners, has strategically decided to diversify and invest a portion of minors’ funds into insurance.

The aim is to ensure sustained growth and stability for the beneficiaries.

Interim Chief Executive Solomoni Nata states that to enhance the overall management of minors’ funds, the TLTB Board of Trustees successfully transitioned these investments from HFC Bank to the Unit Trust of Fiji in June 2022.

Nata adds that 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 seven percent.

He notes that observations have indicated that 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, Nata says 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 coverage will span a term of 10 years, targeting an annual average return of seven percent.

Nata mentions that while the current rent distribution policy allows for the investment of minor funds up to the age of 17, the Board is considering an amendment to facilitate the expansion of diversification for minors above the age of nine.

This adjustment, he says, will allow the assignment of insurance policies to minors once they reach the age of 18.