THE Unit Trust Corporation (UTC) reported total revenue of $1.4 billion from positive contributions from its nine mutual funds for the year ending December 31, 2021.
The financial institution held its 2022 annual general meeting on Thursday, virtually, under the theme Because it is in unity that we find our strength.
This year, UTC will also celebrate its 40th anniversary.
Director Douglas Camacho said it was another historic milestone, with growth of 7% or $25.5 billion in total assets under management, up from $23.8 billion registered in 2021.
“Our commitment to maintaining dividend distributions to our unitholders was particularly important to us in order to provide support during these difficult times and contribute to our country’s economic recovery.
“We have once again maintained this distribution philosophy, paying dividend distributions of $221 million in 2021,” Camacho said.
Executive Director Nigel Edwards said UTC was able to capitalize on equity markets while mitigating the impact in fixed income markets, which made gains across the board and generated good results for its companies. nine mutual funds.
“Our conscientious stewardship of the funds under our management is also reflected in a triple high rating from Caribbean Information and Credit Rating Services (CariCRIS), the region’s leading rating agency.
“For the third consecutive year, CariCRIS has awarded UTC a CariAA rating on the regional rating scale and ttAA on the national TT scale. This recognition serves to affirm our diligent efforts to maintain excellent creditworthiness, strong cash balances and a robust risk management framework,” said Edwards.
He said distributions for the growth and income fund rose 47.8% or $10.8 million to $33.6 million in 2021, up from $22.7 million. in 2020.
UTC also reported a 25% increase in net income, from $57.9 million in 2020 to $72.2 million in 2021; 5% growth in retained earnings to $1.6 billion; and a 9% increase in group investment income due to the improved dividend.
Edwards said: “These results speak for themselves and we are on track to continue to deliver strong performance. This is evidenced by the figures for distributions to unitholders in the first quarter of 2022 which totaled $46 million, net income of $29.7 million and growth in retained earnings to $1.62 billion.
“Despite challenging local and global circumstances, UTC continues to demonstrate its expertise in identifying opportunities while managing risks. Our goal is to build and maintain resilient portfolios that will provide you, our loyal unitholders, with the ability to weather turbulent conditions and enjoy excellent returns on your investments.
Among the changes and advancements, Edwards added, were robust operational practices, technological transformation with the installation of its cloud infrastructure, the installation of eight new ATMs which included improved anti-skimming protection and contactless functionality. and expansion into the Jamaican market.
“We continued to develop our partnership in Jamaica through a strategic alliance with GraceKennedy, with whom we signed a joint venture agreement.
“We are also in the process of obtaining regulatory approvals for a separate initiative in the Caribbean. In both territories, we expect to fully meet regulatory requirements and begin establishing our footprint before the end of 2022,” Edwards added.
He said that with improving finances, interest rates were expected to rise, but he was unable to give a time frame in which this would happen.
“Our distribution depends on the performance of the economy and the performance of the economy to a large extent determined by local and international factors.
“The global interest rate environment appears to be a rising interest rate environment; we see central banks all over the world raising interest rates, including more recently in the United States. We therefore expect the rates paid to investors to increase as the markets evolve. Edwards said.