The Unit Trust Corporation has managed significant growth in 2021 in spite of challenges posed by the COVID-19 pandemic.
At UTC’s Annual General Meeting which was held virtually, UTC director Douglas Camacho highlighted the company’s significant asset growth in his address.
He said, “In 2021, we achieved another historic milestone, with total Assets Under Management growing by 7%, standing at TT$25.5B, up from TT$23.8B the year before. At the end of fiscal 2021, we recorded positive returns on all nine of our Funds and realised a total income of TT$1.4B.”
Camacho noted the company’s performance helped provide much needed dividend distribution payments to Unitholders given the difficult time the country had undergone from an economic standpoint.
He said, “We have once again upheld this Distribution Philosophy, paying out dividend distributions of TT$221M in 2021.”
Executive director Nigel Edwards also hailed the growth of Asset under management but noted the companies overall fiscal performance trended upward.
Edwards said, “In 2021, we have maintained and exceeded the good results which we were able to report in 2020. This was largely due to astute investment management and the stable, resilient approach for which the Corporation is known.”
Edwards noted Distributions for the Growth and Income Fund increased by 47.80% or TT$10.8M, from TT$22.7M in 2020 to TT$33.6M in 2021, while total Income for 2021 stood at TT$1.4B, which represented 82% increase when compared to 2020. He said this was largely driven by improvements in the fair market values of our investments. Net Income also recorded an increase of 25%, from TT$57.9M in 2020 to TT$72.2M.
He added that based on indications, 2022 also promised to be a successful year.
“These results speak for themselves, and we are on track to continue to deliver solid performance. This is evidenced by the 2022 first quarter figures of distributions to unitholders which totalled TT$46M, net income of TT$29.7M, and growth in retained earnings to TT$1.62B.”
Edwards was also proud of the company’s ability to maintain high credit ratings during the difficult period.
He said, “For the third consecutive year, CariCRIS awarded the UTC a CariAA rating on the regional rating scale and ttAA on the Trinidad and Tobago national scale. This recognition serves to affirm our diligent efforts to maintain excellent creditworthiness, strong cash balances and a robust risk management framework.”
He also informed the AGM that UTC had formed a strategic partnership with Jamaican company GraceKennedy.
“To this end, we continued the development of our partnership in Jamaica via a strategic alliance with GraceKennedy, with whom we have signed a Joint Venture Agreement. We are also in the process of securing regulatory approvals for a separate initiative in the Caribbean. In both territories, our expectation is that we will fully meet the regulatory requirements and begin the establishment of our footprint before the end of 2022.”