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A36
A36
| FInAnCIAL RISk MAnAGEMEnT|
Unit Trust Corporation Annual Report 2012
Trinidad and Tobago Unit Trust Corporation
Notes
to the Consolidated
Financial Statements
Past due, impaired or other distressed investments held by the
Collective Investment Schemes managed by the Corporation are
monitored by management and reported to the Management
Risk Committee, the Investment Committee and the Board. The
carrying values of assets past due but not impaired at the 2012
year end for the Collective Investment Schemes are as follows:
Days past due as at 31 December, 2012
1-30
days
31-90
days
91-180
days
FOR THE YEAR ENDED
31 DECEMBER, 2012
Expressed in
Trinidad and Tobago dollars
Over
180
days
$’000 $’000 $’000 $’000
US$ Income Fund 54,122
TT$ Income Fund - - - -
Growth &
Income Fund
- - - -
Universal
Retirement Fund
- - - -
Total - - - 54,122
Days past due as at 31 December, 2011
1-30
days
31-90
days
91-180
days
Over
180
days
$’000 $’000 $’000 $’000
US$ Income Fund - 44,398 - 105,483
TT$ Income Fund - - - 54,459
Growth &
Income Fund
- - - 14,608
Universal
Retirement Fund
- - - 1,415
Total - 44,398 - 175,965
Proprietary Investments
During the course of its proprietary investment activities, the
Corporation may incur credit exposures through its fixed income
securities and cash holdings. Except for a single instrument with a
book value of approximately $9.9 million, which has been deemed
to be of low credit quality, substantially all of the Corporation’s
fixed income exposures, totaling roughly $1.8 billion as at 31
December 2012, were with issuers/counterparties of a high credit
quality - i.e. rated at least BBB- equivalent by international credit
rating agencies or having an internally determined credit score
consistent with such a credit rating.
Impaired assets
Impairment charges are computed in accordance with IFRS
and the Group’s accounting policies. In summary, an asset
is considered impaired where there is no longer reasonable
assurance of collection (within the contractually established
timeframe) of the full amount of principal and interest due to
deterioration in the credit quality of the counterparty or any other
factor which may affect contractual performance. In other words,
an asset is impaired if its estimated recoverable amount is less
than its carrying amount.
The Corporation’s accounting policies require review for impairment
of all financial assets at each reporting period or more regularly
when individual circumstances require. The assessment includes
a review of the collateral held (including re-confirmation of its
enforceability) and the anticipated receipts for that financial asset.
Collective Investment Schemes - Registered as local
unit trust schemes
During the course of 2012, seven assets were impaired across the
Funds. The impairment charges recognised are summarized in the
following Table. no impairment charge was required in respect of
the local Collective Investment Schemes at 31 December, 2011.
2012 2011
$’000 $’000
Growth & Income Fund 21,811 -
TT$ Income Fund 79,434 -
Universal Retirement Fund 1,900 -
US$ Income Fund 211,017
-
Total 314,162 -
Collective Investment Schemes - Registered as
overseas subsidiary companies
With regard to the overseas Funds, no impairment losses
were recorded for the years ended 31 December, 2012 and 31
December, 2011.
Proprietary Investments
An impairment charge of $160,000 was recognised for the
proprietary investments of the Corporation in 2012. no
impairment charge was required in respect of these investments
as at 31 December, 2011.