Trinidad and Tobago Unit Trust Corporation
Notes
to the Consolidated
Financial Statements
FOR THE YEAR ENDED
31 DECEMBER, 2012
Expressed in
Trinidad and Tobago dollars
A50
Liquidity risk
Proprietary Investments
Liquidity risk is the risk that the Group is unable to meet payment
obligations associated with its financial liabilities when they fall due.
The Corporation’s treasury management activities include: (i) daily
monitoring of future cash flow requirements; (ii) maintenance of a
portfolio of investments that can be easily liquidated as protection
against any unforeseen interruptions to cash flow; and (iii)
management of the concentration and profile of debt maturities.
The following Table presents cash flows payable by the Group
for financial liabilities. The amounts disclosed in the Table are the
contractual undiscounted cash flows.
29) FINANCIAL RISK MANAGEMENT
(continued)
Less than
1 year
Between
1 and 5
years
Over
5 years
$’000
$’000 $’000
At 31 December, 2012
Sinking Fund Liabilities
5,701
7,866
-
Financial Instruments
1,577,918 - 2,459
Total
1,583,619 7,866 2,459
Less than
1 year
Between
1 and 5
years
Over
5 years
$’000
$’000 $’000
At 31 December, 2011
Sinking Fund Liabilities
-
7,805
-
Financial Instruments
2,458,816 -
3,810
Total
2,458,816 7,805 3,810
Collective Investment Schemes - Registered as local unit trust
schemes and as overseas subsidiaries
Units in the Growth & Income Fund, the TT$ Income Fund and the
US$ Income Fund are redeemable upon demand by investors. This
is also true of the fund products issued by the overseas subsidiaries.
Consequently, these Funds are exposed to daily unit redemptions.
The Funds mitigate this risk by maintaining adequate portfolio
liquidity through appropriate cash, near cash and other short-term
investments. Given the tradable nature of a substantial proportion
of the Fund portfolios, this risk is not deemed significant.
Unit Trust Corporation
Annual Report 2012
