The Unit Trust Corporation (UTC) Group made a loss of $33 million in 2018 according to its Executive Director Nigel Edwards. The Corporation is reporting a TT$293 million decline in total income last year when compared to 2017.
This is the since the UTC group started preparing consolidated financial report it has recorded a loss.
Edwards told Guardian Media that the reversal of $88 million when compared to 2017 was mainly as a result of the new accounting standards that the corporation had to adopt.
In a telephone interview with GML, Edwards said already the company was seeing positive movements in its net position in 2019 with a change in the fair value of $ 288.7 million.
In its annual report, the UTC’s Chief Financial Officer’s indicated that total income declined from 996 million in 2017 to 772 million in 2018. The principal driver of this was unfavourable movements in the fair value of investments securities amounting to TT$456 million in 2018.
There was a reduction of TT$224 million in realised capital gains due to the rebalancing of the investment portfolio for the Growth and Income Fund and the Universal Retirement Fund.
The Report also said that the Group’s focus on enhancing unitholders’ wealth and providing competitive returns led to increased distribution payments of TT$52 million and total distribution to unitholders was TT$249.3 million.
Despite these challenges in 2018, the report said for the first time in its history the Growth and Income Fund crossed the $5 billion mark.
Speaking on Monday at the Annual General Meeting, Edwards told unitholders that as at April 30, 2019 the UTC had in its Growth and Income Fund TT$5.2 billion under management.
“The success of the Growth and Income Fund surpassed our expectations. Many people in T&T are now sophisticated, responsible investors and as such, the UTC continues to look for new ways that are aligned to the industry’s best practice to bring you value.”
Other key performance indicators that he pointed out include growth in assets to $22 billion, a growth in customer base by 1.3 percent, cash flow generation of $514 million and favourable returns in mutual fund portfolios with the TT Dollar Income Fund crossing the $11 billion mark for the first time in its history.
He said the recent application by the Caribbean Information and Credit Rating Services Limited (CariCRIS) of a “high” credit rating validates that the financial institution is on the right path.
He also referred to the limited availability of foreign currency in the country.
“Unlike the commercial banks, the UTC is not a primary dealer of foreign exchange and as such we are not in receipt of an allocation from the Central Bank. Our supply of US dollars is dependent on what we purchase from customers and what is bought from other financial institutions. The foreign exchange market is extremely restricted, so we will ensure that many of our unitholders have access to the limited funds available. Customers in the US Income Fund can access their funds via their visa card, wire transfer or cheque,” he said.