The Unit Trust Corporation (UTC) has recorded significant growth for 2020, with a growth rate of 4.3 per cent, moving from $22.8 billion to $23.8 billion in total assets.
The UTC delivered its financial statements for the period ending December 31 2020, at its 39th annual general meeting which was held virtually on Wednesday morning.
Chairman Gerry Brooks, who assumed the position in March 2020, said the UTC was knocked off its feet at the height of the pandemic last year, but quickly recovered and was able to record its highest growth since inception.
“We pivoted early, and we pivoted aggressively to stabilise potential further declines. We protected our investment portfolios while positioning to leverage growth and value creation opportunities.
“By the third quarter and ending fiscal 2020, our highest total ever for Funds Under Management since inception in 1982 was $23.6 billion, and we saw impressive growth in net subscriptions, evidenced by net sales of $805 million and successive quarter-on-quarter improvement in profitability and Fund returns post quarter one."
UTC’s investment securities also increased by 7.6 per cent or $1.4 billion when compared to 2019; earnings of $605 million from investment income; increased distributions in fixed-income funds of which paid distributions totalled $169.2 million, up from 2019’s $155.1 million; and the US dollar income fund moved from US$5.7 million in 2019 to US$ 6.9 million in 2020, which resulted in a 20.8 per cent increase.
The corporation also noted that the change in net asset value was inconsequential and resulted in immaterial movement recorded in 2020. The overall change year-over-year was a reduction of $ 22.7 million.
UTC also recorded increased spending by $10.9 million for upgrades to its technological and information systems and moving forward it said this was expected to increase.
Executive director Nigel Edwards said, “With this in mind, we have identified five strategic imperatives to which the corporation must adhere to enhance its competitiveness and deepen its footprint in our financial landscape.
“They are: regional expansion; enhancing product portfolio and optimising returns; enhancing the distribution model; improving operational efficiency; and leveraging technology.”
Technological upgrades included f new products and services in its cloud-based digital solution and contactless chip technology in debit cards by the end of 2021.
Further spending was expected in its entrepreneurship programme Scale Up, a partnership with US-based Entrepreneurship Policy Advisors (EPA) to facilitate the growth of small and medium enterprises.
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