REVIEW OF THE ECONOMY 2013
56
SUSTAINING GROWTH, SECURING PROSPERITY
commercial bank deposits and treasury bills
given the high liquidity and low interest rate
environment in the domestic economy. Over
the 9-month period October 2012 to June 2013,
aggregate funds under management increased
by 0.5 percent from $40.2 billion in October
2012 to $40.3 billion by June 2013. On a year-
on-year basis, funds under management grew
by 7.5 percent from $37.5 billion to $40.3 billion.
This increase in funds under management was
driven by aggregate net sales, which increased
threefold by over 217 percent on a year-on-year
basis from$1.3 billion inJune 2012 to $3.9 billion
by June 2013.
The impetus for the growth in funds under
subdued, issuing only two (2) out of the eleven
(11) bonds that came tomarket during the review
period. RBC Royal Bank (Trinidad and Tobago)
Limited issued a $300 million, 15 year, 4.75
percent callable bond in November 2012, while
Prestige Holdings Limited issued a $140 million
10 year, 6.25 percent per annum floating rate
bond. Prestige Holdings Limited bond’s coupon
rate of 6.25 percent per annum represented the
highest interest rate offered among the other
ten (10) bonds issued during the review period.
Mutual Funds
Mutual funds featured as a relatively attractive
investment alternative to instruments such as
Figure 18:
Comparative Analysis – Market Share
a) Money Market Funds
b) Growth and Income Funds
Sources: UTC, RBL, RBC and FCB
THE MONETARY SECTOR
