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exeCUtIVe DIreCtor’S Letter Unit Trust Corporation Annual Report 2012
cash and cash equivalents.
unIveRsal RetIRement fund
As at 31st December 2012, the fund-size of
the Universal Retirement Fund had grown
by 13.80 percent from TT$186.92 million to
TT$212.71 million. The URF recorded net
sales in the amount of TT$7.93 million for
2012 which in turn contributed to the growth
in fund-size. The Fund’s net Asset Value (nAV)
appreciated to TT$35.46 at the end of 2012
from TT$32.74 in 2011.
The Fund provided unitholders with a net re-
turn of 8.31 percent, compared to 10.27 per-
cent a year ago. In 2012, the overall domestic
stock market performance was adversely affected
by significant negative returns posted
by cross-listed stocks of which the Fund
held some positions in. This caused the yearover-year
decline in the net return, notwithstanding
higher returns from its international
equity and bond components. The portfolio
comprised 40 percent domestic and regional
equities, 24 percent international equities, 30
percent bonds, and 6 percent cash and cash
equivalents as at the end of 2012.
Investment income grew by 46.35 per-
cent year-over-year from TT$8.29 million to
TT$12.14 million. net investment income for
the year totalled TT$6.03 million compared to
TT$4.61 million a year ago, reflecting growth
of 32.43 percent.
utC GlObal bOnd fund
The UTC Global Bond Fund grew 0.48 percent
year-over-year from US$1.676 million
(TT$10.64 million) to US$1.683 million
(TT$10.69 million). The Fund’s net Asset
Value (nAV) stood at US$20.91 per unit as
at December 31, 2012, up from US$19.64 a
year ago. The Fund generated a net return
for unitholders of 7.43 percent compared
to the 2011 return of negative 1.95 percent.
The Fund held overweight positions in US
government securities and bonds at the lower
end of the investment-grade spectrum,
allowing for some yield pick-up. It also seized
the opportunity to crystallize gains on some
of its sovereign debt and re-invested the
proceeds in international corporate debt of
companies within the Financial and Consumer
sectors which performed well during the
year. The portfolio’s asset allocation as at the
end of 2012 was: 84 percent international
bonds, 8 percent local and regional bonds,
and 8 percent cash and cash equivalents.
utC eneRGy fund
The fund-size of the UTC Energy Fund contracted
by 20 percent year-over-year in 2012
from US$6.20 million (TT$39.39 million) to
US$4.96 million (TT$31.52 million), primarily
as a result of net redemptions of US$1.32
million (TT$8.39 million). The Fund’s net Asset
Value (nAV) fell from US$17.95 in 2011 to
US$17.23 by the end of the year.
The Fund generated a return of negative 4.01
percent in 2012, albeit significantly improved
over the previous year’s return of negative
20.82 percent. The Fund’s performance was
attributable to its relative underweight position
in the Refining & Marketing and Storage
& Transportation sub-sectors, which were the
best-performing sub-sectors for 2012, and
its relative overweight position in the Equipment
& Services and Coal sub-sectors, which
were the worst performing sub-sectors. As at
the end of 2012, the Fund comprised 92 percent
international equities, 3 percent bonds,
and 5 percent cash and cash equivalents.
utC asIa PaCIfIC fund
The fund-size of the UTC Asia Pacific Fund
contracted by 1.44 percent year-over-year
from US$1.88 million (TT$11.92 million) to
US$1.85 million (TT$11.75 million) by the
end of 2012. The Fund faced net redemptions
of US$269.7 thousand (TT$1.71 million)
during the year, which partly contributed to
the decline in fund-size. The offer and bid