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
A36
Less than
1 year
Between 1
and 5 years
Over 5
years
Total
$’000
$’000
$’000
$’000
At 31 December, 2011
Growth and Income Fund
Debt instruments – traded
-
-
8,614
8,614
Debt instruments – non-traded
310,134
103,532
291,246
704,912
Cash & other net assets
324,574
-
-
324,574
634,708
103,532
299,860
1,038,100
TT$ Income Fund
Debt instruments – traded
161,533
-
111,759
273,292
Debt instruments – non-traded
4,861,990
802,471
3,041,934
8,706,395
Cash & other net assets
1,577,090
-
-
1,577,090
6,600,613
802,471
3,153,693
10,556,777
Universal Retirement Fund
Debt instruments – traded
-
-
-
-
Debt instruments – non-traded
10,464
18,747
27,582
56,793
Cash & other net assets
15,586
-
-
15,586
26,050
18,747
27,582
72,379
US$ Income Fund
Debt instruments - traded
-
107,628
-
107,628
Debt instruments – non-traded
2,616,106
346,701
697,393
3,660,200
Cash & other net assets
573,643
-
-
573,643
3,189,749
454,329
697,393
4,341,471
As at 31 December 2012, the Funds’TT dollar denominated fixed income positions were primarily categorized as held-to-maturity and as a
consequence changes in TT dollar interest rates would not have materially affected the net assets of the portfolios given that this category
of financial asset is always carried at amortized cost in accordance with IFRS.
On the other hand, a number of US dollar denominated fixed income positions held by the local TT domiciled Funds are categorized as
available-for-sale and as such changes in US dollar interest rates would affect the net assets of the portfolios given that this category of
financial asset is always carried at fair value in accordance with IFRS.
With all other variables held constant, sensitivity analysis performed for a 1% increase and decrease in US interest rates as at 31 December,
2012 and 31 December, 2011 would have had the following estimated impact on the net assets of the individual portfolios:
100 basis point increase
31 December, 2012
31 December, 2011
Growth & Income Fund
($1.40 million)
($1.58 million)
TT$ Income Fund
($3.27 million)
($18.22 million)
US$ Income Fund
($37.49 million)
($23.47 million)
100 basis point decrease
31 December, 2012
31 December, 2011
Growth & Income Fund
$1.50 million
$1.71 million
TT$ Income Fund
$3.47 million
$19.20 million
US$ Income Fund
$36.61 million
$24.95 million
The Universal Retirement Fund had no exposure to US interest rate movements as at 31 December, 2012 or as at 31 December, 2011.
29) FINANCIAL RISK MANAGEMENT
(continued)
Interest rate risk
(continued)
Unit Trust Corporation
Annual Report 2012
