EXECUTIVE DIRECTOR’S LETTER
Unit Trust Corporation
Annual Report 2012
36
at December 31, 2012 was TT$3.68 billion, up
11.48 percent fromTT$3.30 billion a year ago.
The increase in fund-size was derived pri-
marily from TT$149.53 million in unrealized
capital appreciation and TT$211.67 million
in net sales achieved in 2012. The bid and
offer prices appreciated in 2012 to TT$15.22
and TT$15.52 per unit respectively versus
TT$14.13 and TT$14.42 per unit in 2011. The
Fund produced a net return to unitholders of
6.24 percent in 2012, compared to its 2011
return of 7.58 percent. The Fund benefited
favourably from its overweight position in lo-
cal and international equities which yielded
moderate returns.
Investment income grew by 33.2 percent
from TT$176.44 million to TT$235.01 million
in 2012. This translated into net investment
income of TT$138.0 million, up 25.85 percent
over the prior year’s figure of TT$109.66 mil-
lion. The pay-out rate declined from 37 cents
per unit to 30 cents per unit resulting in a to-
tal distribution payment of TT$73.76 million
in 2012, compared to TT$88.9 million a year
ago. A sum of TT$54.0 million was allocated
to the Growth & Income Fund’s Reserves
during the year. As at December 31, 2012
the asset allocation was 43 percent domestic
and regional equities, 23 percent internation-
al equities, 23 percent bonds, and 11 percent
money market securities and cash.
Universal Retirement Fund
As at 31st December 2012, the fund-size of the
Universal Retirement Fund had grown 13.80
percent from TT$186.92 million to TT$212.71
million. The URF recorded TT$11.98 million in
unrealized capital appreciation and TT$7.93
million in net sales for 2012, both of which
contributed to the growth in fund-size. The
Fund’s bid price appreciated to TT$35.46 at
the end of 2012 from TT$32.74 in 2011.
The Fund provided unitholders with a net
return of 8.31 percent, compared to 10.27
percent a year ago. In 2012, domestic equi-
ties performed quite well, while cross-listed
or regional equities underperformed. This
led to the T&T Composite Index generating
a moderate 5.14 percent return. The URF was
invested in regional equities, so that not-
withstanding higher returns produced by its
international equity and bond components,
the net return declined on a year-over-year
basis in 2012. The portfolio comprised 40 per-
cent domestic and regional equities, 29 per-
cent international equities, 22 percent bonds,
and 9 percent money market securities and
cash at the end of 2012.
Investment income grew by 46.35 per-
cent year-over-year from TT$8.29 million to
TT$12.14 million. Net investment income for
the year totalled TT$6.11 million compared to
TT$4.61 million a year ago, reflecting growth
of 32.43 percent.
UTC Global Bond Fund
The UTC Global Bond Fund grew 0.43 per-
cent year-over-year from US$1.676 mil-
lion (TT$10.64 million) to US$1.683 million
(TT$10.69 million). The Fund’s bid price
stood at US$20.91 per unit as at December
31, 2012, up from US$19.64 a year ago. The
Fund generated a net return to unitholders
of 6.47 percent compared to the 2011 re-
turn of negative 1.95 percent. The Fund held
overweight positions in US government se-
curities and bonds at the lower end of the in-
vestment-grade spectrum, allowing for some
yield pick-up. It also seized the opportunity
to crystallize gains on some of its sovereign
debt and re-invested the proceeds in inter-
national corporate debt of companies within
the Financial and Consumer sectors which
performed well during the year. The portfo-
lio’s asset allocation as at the end of 2012 was:
85 percent international bonds, 8 percent lo-
cal and regional bonds and 7 percent money
market securities and cash.
UTC Energy Fund
The fund-size of the UTC Energy Fund con-
tracted by 20.50 percent year-over-year in
2012 from US$6.240 million (TT$39.62 mil-
lion) to US$4.961 million (TT$31.52 million),
primarily as a result of net redemptions
of US$1.320 million (TT$8.39 million). The
Fund’s bid price fell from US$17.95 in 2011 to
US$17.23 by the end of the year.
The Fund generated a return of negative 4.01
percent in 2012, albeit significantly improved
over the previous year’s return of negative
20.82 percent. The Fund’s performance was
attributable to its relative underweight posi-
tion in the Refining & Marketing and Storage
& Transportation sub-sectors, which were the
best-performing sub-sectors for 2012, and its
relative overweight position in the Equipment
& Services and Coal sub-sectors, which were
the worst performing sub-sectors. As at the
end of 2012, the Fund comprised 94 percent
international equities and 6 percent cash.
UTC Asia Pacific Fund
The fund-size of the UTC Asia Pacific Fund
contracted by 1.84 percent year-over-year
from US$1.883 million (TT$11.96 million) to
US$1.849 million (TT$11.75 million) by the
end of 2012. The Fund faced net redemp-
tions of US$271.9 thousand (TT$1.73 million)
during the year, which partly contributed to
the decline in fund-size. The offer and bid
prices ended 2012 at US$23.78 and US$22.59
respectively, compared to US$21.13 and
US$20.07 in the previous year.
The net return generated by the UTC Asia
Pacific Fund for 2012 was 6.91 percent, a sig-
nificant improvement over negative 19.07
percent return posted in 2011. In 2012,
many Asian equity markets rallied, in par-
ticular China, Thailand, Philippines, and India.
The Fund had overweight positions in both
Thailand and the Philippines which contrib-
uted towards the improved performance. By
the 2012 year-end the Fund’s asset allocation
was: 93 percent international equities and 7
percent cash.
UTC European Fund
In 2012, the UTC European Fund experienced
fund-size growth of 13.22 percent with net
assets standing at US$1.064 million (TT$6.76
million) versus US$0.940 million (TT$5.97
million) a year ago. The Fund’s offer and bid
