EXECUTIVE DIRECTOR’S LETTER
Unit Trust Corporation
Annual Report 2012
37
prices closed 2012 at US$21.88 and US$20.78
respectively compared to their 2011 values of
US$19.22 and US$18.26.
The net return to unitholders for 2012 was
8.12 percent compared to the 2011 return of
negative 14.51 percent. This favourable per-
formance was prompted by the huge rallies
experienced in the European stock markets
during 2012. At the end of 2012, the Fund
comprised 91 percent international equities,
3 percent bonds, and 6 percent cash.
UTC Latin American Fund
In 2012, the fund-size of the UTC Latin
American Fund grew by 6.20 percent
from US$1.122 million (TT$7.12 million) to
US$1.191 million (TT$7.57 million). The Fund’s
offer and bid prices appreciated in 2012 to
US$22.12 and US$21.02 respectively, up from
their 2011 values of US$20.59 and US$19.56.
The net return to unitholders for 2012 was
2.09 percent, improved over the negative
return of 22.44 percent posted in 2011. The
Latin American equity markets posted posi-
tive returns in 2012 relative to the negative
performance in 2011. As at December 31,
2012 the portfolio comprised 89 percent in-
ternational equities, and 11 percent cash.
UTC North American Fund
TheUTCNorthAmerican Fund’s fund-size grew
by 3.71 percent during 2012 from US$29.83
million (TT$189.41million) in 2011 to US$30.92
million (TT$196.44 million). The Fund grew de-
spite net redemptions totalling US$682.0 thou-
sand (TT$4.33 million) during the year.
The Net Asset Value (NAV) per unit as at
December 31, 2012 stood at US$9.97, slightly
higher than the 2011 NAV of US$9.86. The
Fund paid a total distribution of US 5 cents
per unit in 2012 compared to US 39 cents per
unit a year ago, and generated a net return
to investors of 6.04 percent versus a return of
negative 3.90 percent in 2011. The improved
performance was attributable to better re-
turns generated in the US stock market, as
the S&P 500 Index returned 13.4 percent after
a flat performance in 2011. As at the end of
2012 the NAF’s asset allocation was: 68 per-
cent North American equities, 29 percent
bonds, and 3 percent cash.
Update on Strategic Initiatives
In 2012, the second year of the action horizon
period, the Corporation made meaningful
progress in the implementation of its five year
strategic plan which will enable us to forge
a path towards competitive sustainability
through various institutional strengthening
initiatives. These initiatives are entrenched
in the following four strategic themes: (i)
Financial Restructuring, (ii) Efficiency and
Corporate Governance Improvement, (iii)
Reputation Enhancement, and (iv) Refocus
on the Customer. Some of the key develop-
ments made during the 2012 financial year
with respect to each of the above strategic
themes are discussed hereunder.
Financial Restructuring
The Corporation successfully disposed of its
Merchant Banking operations and its Belize
subsidiary in 2011, bringing to a close the
major initiatives under this strategic theme.
Efficiency & Corporate Governance
Improvement
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Business Process Review Project
In August 2012, the Corporation embarked
upon a Business Process Review Project
aimed at improving our existing business
processes and systems and ultimately
enhancing customer service delivery. We
retained the services of a reputable inter-
national consultant to assist us with the
review, and are happy to report that as of
the 2012 year-end, Phase I of this project
has been concluded. The review entailed
the following:
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Defining a Customer Service Delivery
Vision for the organization consistent
with international best practices for
mutual fund providers,
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Analyzing our current Customer Service
Processes,
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Identifying new, re-designed Customer
Service Processes,
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Assessing our existing Information &
Communications Technology (ICT)
infrastructure and capabilities, and
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Providing critical training to our
Executive, management and super-
visory teams with respect to Business
Process Management (BPM) Awareness.
In 2013, the project will move into Phase II.
Essentially, at that time the Corporation will
adopt measures to bridge the gap between
where our customer service processes cur-
rently stand and the desired future state.
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Amendment of the UTC Act 1981
In 2011, the Corporation submitted a for-
mal proposal to the relevant authorities
to amend its enabling legislation, the Unit
Trust Corporation of Trinidad & Tobago Act
No. 26 of 1981, so as to allow the vesting
of UTC Trust Services Limited with legal
authority to act as the Trustee of the Unit
Schemes in place of the Corporation.
This is in keeping with international best
practices for unit scheme providers and
also with Trinidad & Tobago Securities &
Exchange Commission’s (TTSEC) guide-
lines. The proposal is currently under re-
view by the Ministry of Finance and the
Economy.
Reputation Enhancement
The Corporation hosted a Business Media
Workshop at the Hyatt Regency Hotel on
October 18th and 19th, 2012 geared to-
wards educating local media personnel on
the principles of professional business writ-
ing. This workshop was facilitated by Ms.
Jan Brandstrader, a Contributing Editor at
Barron’s and Adjunct in the Graduate School
of Journalism at Columbia University School
of Journalism. Journalists were exposed to
an array of topics including: writing for the
investor, the consumer and small business-
es, reading Central Bank signals, analysing
