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
A25
15) STATUTORY RESERVES
In accordance with Section 59(3)(d)(ii) of the Securities Industry Act,
Chapter 83:02 and Section 12(1)(a) and (b) of the Securities Industry
By-Laws, Chapter 83:02, a reserve of $5 million was established to
satisfy the capital requirements for registration as an Underwriter
and $50,000 for registration as an Investment Adviser respectively.
16) REVALUATION RESERVE
The revaluation reserve reflects un-realised capital appreciation
and depreciation from changes in the fair values of available-for-
sale financial instruments held by the Group. Foreign currency
translation differences are also reflected therein. The revaluation
of the investments held by the Investment Funds is reflected on
the Statement of Financial Position of each of the Funds and is not
included in this revaluation reserve.
17) NON-CONTROLLING INTEREST
Non-controlling interest represents the portion of the equity in UTC
North America Fund Inc., and Unit Trust Corporation (Cayman) SPC
Limited that is not owned by any entity within the UTC Group of
companies. In both instances investors in the Collective Investment
Schemes are shareholders, as the schemes are organized as legal
entities within a corporate structure.
The movement in non-controlling interest is provided in the
Consolidated Statement of Changes in Equity.
18) MANAGEMENT CHARGE
2012
$’000
2011
$’000
Growth and Income Fund
72,687
66,740
TT$ Income Fund
200,257
157,113
Universal Retirement Fund
4,128
3,679
US$ Income Fund
30,323
61,887
Total
307,395
289,419
(a) The Corporation - in accordance with the regulations
governing the Growth and Income Fund, the TT$ Income
Fund, the Universal Retirement Fund and the US$ Income Fund
- may charge a management fee of up to 2% on the value of
the funds under management in the respective schemes and
funds. The average rate of management charge for the year
was 1.6% (2011: 1.8%)
(b) In accordance with the prospectus governing the segregated
portfolio funds of the Unit Trust Corporation (Cayman) SPC
Limited, the Corporation may charge a management fee
not exceeding 1.5% of funds under management. The
management fee charged for the year was 1.3% (2011:1.3%).
In addition to the management charge of $307 million, the
Group earned management charge of $2.6 million (2011: $2.7
million) from its foreign investment portfolios and other funds
under management. This is recognised in Other Income in the
Consolidated Statement of Income.
Unit Trust Corporation
Annual Report 2012
