UTC of T&T Strong, assets and investments growing

The chairman of the Unit Trust Corporation of Trinidad &Tobago (UTC) told reporters in Port of Spain Wednesday the financial institution remains strong and assured investors and depositors that their funds are safe. Amoy Chang Fong said the UTC's business model is "transparent and tightly managed."

Chang Fong and UTC executive director Marlon Holder made the disclosures at a news conference in Port of Spain.

“Our financial position is strong and our investments are safe,” insisted Chang Fong, adding, "We are not going to extend ourselves just to give people better returns.”

She said the UTC will not face problems similar to CLICO because the Act governing the corporation is specific as to what the UTC could do. “We are not like Clico, that can’t happen,” she insisted.

According to the UTC balance sheet circulated to staff in a memo dated March 4, 2009, the UTC said its capital and reserves or retained earnings stood at TT$794.6 billion in 2008, up from TT$706 billion in 2007.

The UTC’s financial statements for the year ended December 31, 2008, show total assets grew from around TT$18.9 billion to TT$19.9 billion with net income after tax growing from TT$101 million to TT$131.4 million. In addition, the distribution paid to customers exceeded TT$1 billion for 2008, the first time in the UTC’s history.

Chang Fong said despite the volatile market returns, 2009 started in an upward trend. And Holder said confidence in the UTC remains high, pointing out that from January to February 2009, the number of customers increased by 3,000 when compared to a year ago and he cited the 6,000 increase in investors for the same time period.

The chairman told reporters the sound financial picture is an indication of the strength of the UTC. She explained that in a worse-case scenario where the UTC suffered a deficit, investors are assured of getting their monies back.

Both Holder and Chang Fong said the Central Bank, which has one representative on the UTC board, is aware of the UTC investments and the manner in which it runs its operations.

Holder explained that the UTC, which falls under the purview of both the Central Bank and Ministry of Finance, has been given a “clean bill of health” by Auditor General Sharmaine Ottley, who in the corporation’s year-end report said the UTC met all auditing criteria as required by the legislation.