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A18<br />
A18<br />
| FUnD RESERVES|<br />
Unit Trust Corporation Annual Report 2012<br />
Trinidad and Tobago Unit Trust Corporation<br />
Notes<br />
to the Consolidated<br />
Financial Statements<br />
14) FUND RESERVES<br />
FOR THE YEAR ENDED<br />
31 DECEMBER, 2012<br />
Expressed in<br />
Trinidad and Tobago dollars<br />
2012<br />
$’000<br />
2011<br />
$’000<br />
Growth and Income Guarantee Reserve Fund - 10,000<br />
Growth and Income Fund Secondary Reserve Facility 53,000 -<br />
TT$ Income Fund 39,128 35,961<br />
US$ Income Fund 59,352 67,475<br />
Total 151,480 113,436<br />
Allocations from the Growth and Income Fund, TT$ Income Fund and US$ Income Fund are made to<br />
reserves established at the Corporation for the respective Funds.<br />
Allocations from the Funds to the said reserves during 2012 totalled $76.7 million (2011: $23.4<br />
million) as shown hereunder:<br />
a) Growth and Income Guarantee Reserve fund<br />
In 1984, in accordance with the provisions of Section 26 (1) and (2) of the Act, the Corporation<br />
established a Guarantee Reserve Fund in respect of the Growth and Income Fund (First Unit Scheme)<br />
to ensure adequate funding of the Guarantee Pricing Plan. During 2012 the Growth and Income<br />
Fund made allocations in the amount of $1.0 million to the Guarantee Reserve. Calls totalling $21.4<br />
million were made on the Reserve, of which the Corporation met $10.4 million. The Corporation will<br />
continue to discharge its obligations under the Guarantee out of its reserves.<br />
During 2012 the Board approved the establishment of a Secondary Reserve Facility for the Growth<br />
and Income Fund (First Unit Scheme). The Secondary Reserve Facility will be funded from: Income<br />
of the Growth and Income Fund, Income of the Corporation and the Retained Earnings of the<br />
Corporation. The Secondary Reserve will be used to fund any future requirements for capital<br />
reinstatement and/or distribution liabilities of the Growth and Income Fund.<br />
A summary of the transactions in each of the Growth and Income Reserves is provided below.<br />
2012<br />
$’000<br />
2011<br />
$’000<br />
Guarantee Reserve Fund<br />
Fund reserve as at 1 January 10,000 -<br />
Allocation to reserve (Growth and Income Fund) 1,000 11,000<br />
Call on reserve (21,435) (27,371)<br />
Allocation to reserve (Corporation) 10,435 26,371<br />
Guarantee Reserve Fund at 31 December - 10,000<br />
2012<br />
$’000<br />
2011<br />
$’000<br />
Secondary Reserve Facility<br />
Fund reserve as at 1 January - -<br />
Allocation to reserve (Growth and Income Fund) 53,000 -<br />
Secondary Reserve Facility at 31 December 53,000 -<br />
b) tt$ Income fund Reserves<br />
In accordance with the provisions of Section 13 of the TT$ Income Fund (Second Unit Scheme)<br />
Regulations issued under the Act, the Corporation established two reserves in respect of the TT$<br />
Income Fund, a Primary Reserve and a Secondary Reserve.
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