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
A35
Given the general offsetting effect of exposures to fair value interest rate risk and cash flow interest rate
risk, the overall interest rate risk is managed by making judicious adjustments of the overall weighted
average term to maturity (i.e. duration) based on the relevant economic and financial market outlook.
Management monitors the duration of the portfolios by segregating the fixed income securities by the
earlier of contractual maturity or interest rate reset dates that are less than or equal to one year, greater
than one year but less than five years, and greater than or equal to five years. The degree of interest rate
sensitivity in the overall portfolio is then reflected by the relative proportions in the given maturity terms/
interest rate reset frequencies.
An interest rate re-pricing analysis (as defined by the earlier of the contractual maturity or interest
fixing date for each instrument) is provided below for the Collective Investment Schemes’ fixed income
portfolio as at 31 December, 2012 and 31 December, 2011:
Less than
1 year
Between 1
and 5 years
Over 5
years
Total
$’000
$’000
$’000
$’000
At 31 December, 2012
Growth and Income Fund
Debt instruments – traded
-
-
27,519
27,519
Debt instruments – non-traded
52,468
67,961
691,034
811,463
Cash & other net assets
387,342
-
-
387,342
439,810
67,961
718,553
1,226,324
TT$ Income Fund
Debt instruments – traded
139,595
91,085
-
230,680
Debt instruments – non-traded
1,464,618
1,360,389
1,924,423
4,749,430
Cash & other net assets
6,174,611
-
-
6,174,611
7,778,824
1,451,474
1,924,423
11,154,721
Universal Retirement Fund
Debt instruments – traded
-
-
-
-
Debt instruments – non-traded
8,018
7,141
31,846
47,005
Cash & other net assets
22,522
-
-
22,522
30,540
7,141
31,846
69,527
US$ Income Fund
Debt instruments – traded
662,792
310,026
581,771
1,554,589
Debt instruments – non-traded
253,994
119,788
142,938
516,720
Cash & other net assets
2,447,450
-
-
2,447,450
3,364,236
429,814
724,709
4,518,759
29) FINANCIAL RISK MANAGEMENT
(continued)
Interest rate risk
(continued)
Unit Trust Corporation
Annual Report 2012
