p17n63qg7jmbh1r4fin71pds1p454.pdf

A26
A26
| FInAnCIAL RISk MAnAGEMEnT|
Unit Trust Corporation Annual Report 2012
Trinidad and Tobago Unit Trust Corporation
Notes
to the Consolidated
Financial Statements
At 31 December, 2011
Less than
1 year
FOR THE YEAR ENDED
31 DECEMBER, 2012
Expressed in
Trinidad and Tobago dollars
Between 1
and 5 years
Over 5
years
Total
$’000 $’000 $’000 $’000
Growth & Income Fund
Debt instruments – traded - - 8,614 8,614
Debt instruments – non-traded 310,134 103,532 291,246 704,912
Cash & other net assets 324,574 - - 324,574
TT$ Income Fund
634,708 103,532 299,860 1,038,100
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
Universal Retirement Fund
6,600,613 802,471 3,153,693 10,556,777
Debt instruments – traded - - - -
Debt instruments – non-traded 10,464 18,747 27,582 56,793
Cash & other net assets 15,586 - - 15,586
US$ Income Fund
26,050 18,747 27,582 72,379
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