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
A24
b) TT$ Income Fund Reserves
In accordance with the provisions of Section 13 of the TT$ Income
Fund (Second Unit Scheme) Regulations issued under the Act, the
Corporation established two reserves in respect of the TT$ Income
Fund, a Primary Reserve and a Secondary Reserve.
The Primary Reserve was established to satisfy any shortfall that
may arise from the liquidation of securities in the portfolio of the
Fund. The Secondary Reserve was established to augment the
capital maintenance capability of the Fund and provide for the
funding of any distribution liability which may arise.
TT$ Income Fund - Primary Reserve
2012
2011
$’000
$’000
Fund reserve as at 1 January
32,450
29,260
Allocation to primary reserve
2,800
2,800
Interest earned on the reserve
332
390
Primary Reserve as at 31 December
35,582
32,450
TT$ Income Fund - Secondary Reserve
2012
2011
$’000
$’000
Fund reserve as at 1 January
3,511
3,498
Interest earned on the reserve
35
13
Secondary Reserve as at 31 December
3,546
3,511
Total TT$ Fund Reserves 31 December
39,128
35,961
14) FUND RESERVES
(continued)
c) US$ Income Fund Reserves
In accordance with the provisions of Section 26 (1) and (2) of the
Act, the Corporation has established two reserves in respect of the
US$ Income Fund, a Primary Reserve and a Secondary Reserve.
The Primary Reserve was established to satisfy any shortfall that
may arise from the liquidation of securities in the portfolio of the
Fund. There was a call on the Primary Reserve during the last
quarter of 2012.
The Secondary Reserve was established to augment the capital
maintenance capability of the Fund and to provide for the funding
of any distribution liability which may arise.
US$ Income Fund – Primary Reserve
2012
$’000
2011
$’000
Fund reserve as at 1 January
58,685
49,411
Allocation to primary reserve
7,623
7,620
Call on reserve
(28,588)
-
Interest earned on the reserve
466
1,654
Primary Reserve at 31 December
38,186
58,685
US$ Income Fund – Secondary Reserve
2012
$’000
2011
$’000
Fund reserve as at 1 January
8,790
6,624
Allocation to secondary reserve
12,306
2,145
Interest earned on the reserve
70
21
Secondary Reserve at 31 December
21,166
8,790
Total US$ Income Fund Reserves
59,352
67,475
Unit Trust Corporation
Annual Report 2012
