The Unit Trust Corporation's (UTC) net investment income for the 2015 financial year increased by $62.8 million to $85.7 million, driven mainly by solid increases in interest income. However, its asset base reduced marginally by 0.96 per cent to $21.23 billion from $21.42 billion.
These were some of the highlights given by executive director Ian Chinapoo as he presented the annual report at the UTC's annual general meeting on Tuesday evening at Queen's Hall, St Anns. He said the UTC's successes came despite a challenging macro economic climate.
"Domestically, the financial market was characterized by high levels of liquidity which averaged $3.5 billion during 2015," Chinapoo said.
"At its December monetary policy meeting, the Central Bank of T&T raised its benchmark repo rate by 25 basis points to 4.75 per cent. The decision marked the eighth consecutive increase as the bank continued to address the differential between the US and TT interest rates, as well as reining in resurgent inflationary pressures. At present, excess liquidity in T&T approximates $5.5 billion." he said
Chinapoo said the UTC's funds under management increased marginally from 2014, moving from $19.85 billion to $19.9 billion. Over the same period, group impairments declined by 31.3 per cent to $113.75 billion from $165.59 billion.
"In the midst of volatile conditions in equity markets, the UTC benefited from stability in the fixed income space which enabled the funds to produce favourable performances in 2015," he said, adding that the size of the Growth and Income Fund (GIF) was relatively unchanged from a year ago at $4.65 billion.
The TT Dollar Income Fund enjoyed higher subscriptions in 2015, with overall fund size increasing 1.81 per cent to $10.66 billion.
Chinapoo said on January 11, with West Texas Intermediate (WTI) crude oil approaching multi year lows at US$30 a barrel, the UTC promoted the Trinidad and Tobago Calypso Macro Index Fund, the first ever indigenous closed end fund.
"At present the fund gives unit holders the opportunity to attain precious local and international assets at a bargain price," he said.
"The value of the units is expected to increase over the next decade as we enter the next phase of the business cycle. I am pleased to report a return of 5.17 per cent."
Chinapoo said the challenging local and international economy should not cause alarm in 2016
"Rather, we suggest that as we are in the trough of the business cycle, our prospects will improve as we enter the next phase and transition into expansion. It is in our view a moment of optimal investment opportunity to garner value for out unit holders," he said.
