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
A23
14) FUND RESERVES
2012
$’000
2011
$’000
Growth and Income Guarantee Reserve Fund
-
10,000
Growth and Income Fund Secondary Reserve Facility
53,000
-
TT$ Income Fund
39,128
35,961
US$ Income Fund
59,352
67,475
Total
151,480
113,436
Allocations from the Growth and Income Fund, TT$ Income Fund and US$ Income Fund are made
to reserves established at the Corporation for the respective Funds.
Allocations from the Funds to the said reserves during 2012 totalled $76.7 million (2011: $23.4
million) as shown hereunder:
a) Growth and Income Guarantee Reserve Fund
In 1984, in accordance with the provisions of Section 26 (1) and (2) of the Act, the Corporation
established a Guarantee Reserve Fund in respect of the Growth and Income Fund (First Unit Scheme)
to ensure adequate funding of the Guarantee Pricing Plan. During 2012 the Growth and Income
Fund made allocations in the amount of $1.0 million to the Guarantee Reserve. Calls totalling $21.4
million were made on the Reserve, of which the Corporation met $10.4 million. The Corporation will
continue to discharge its obligations under the Guarantee out of its reserves.
During 2012 the Board approved the establishment of a Secondary Reserve Facility for the Growth
and Income Fund (First Unit Scheme). The Secondary Reserve Facility will be funded from: Income
of the Growth and Income Fund, Income of the Corporation and the Retained Earnings of the
Corporation. The Secondary Reserve will be used to fund any future requirements for capital
reinstatement and/or distribution liabilities of the Growth and Income Fund.
A summary of the transactions in each of the Growth and Income Fund Reserves is provided below.
2012
$’000
2011
$’000
Guarantee Reserve Fund
Fund reserve as at 1 January
10,000
-
Allocation to reserve (Growth and Income Fund)
1,000
11,000
Call on reserve
(21,435)
(27,371)
Allocation to reserve (Corporation)
10,435
26,371
Guarantee Reserve Fund at 31 December
-
10,000
2012
$’000
2011
$’000
Secondary Reserve Facility
Fund reserve as at 1 January
-
-
Allocation to reserve (Growth and Income Fund)
53,000
-
Secondary Reserve Facility at 31 December
53,000
-
Unit Trust Corporation
Annual Report 2012
