The Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the issuer/corporate credit Ratings of CariAA (foreign and local currency) on the regional rating scale, and ttAA on the national scale to Trinidad and Tobago Unit Trust Corporation (TTUTC). 

These ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in T&T and the wider Caribbean is high.

CariCRIS also maintains a stable outlook on the ratings. The stable outlook is based on CariCRIS’ expectation that TTUTC will continue to report profitable operations, strong capitalisation, risk management practices and good liquidity over the next 12 to 15 months. 

Additionally, the stable outlook reflects the expected positive impact of the corporation’s technological advances on its operating efficiency.

The TTUTC’s ratings continue to reflect the importance of the mutual funds industry to the Trinbagonian economy, as well as the corporation’s market position as the largest mutual funds provider in the twin-island republic.

Additionally, TTUTC’s investment portfolio continues to be well managed, with good asset quality and healthy investment returns. Furthermore, the corporation’s strong risk management practices continue to support the overall improvement in operating efficiency.

Moreover, the corporation continues to record good financial performance supported by improving economic conditions and growing funds under management (FUM). These rating strengths are tempered by the existing legislation which could serve to limit the corporation’s growth. Also constraining the rating is TTUTC’s ageing unitholder base which could impact long-term growth.

The TTUTC was established in 1981 by way of the Unit Trust Corporation of Trinidad and Tobago Act (the Act) and commenced operations in November 1982.

 Upon commencement of operations, the TTUTC introduced its first unit scheme (now called the Growth and Income Fund).

The corporation was established to mobilise the savings of the domestic population in the Trinidad and Tobago financial system and channel these into desirable investments, and to foster a wider shareholding democracy by providing persons of modest means with a facility to own shares.

The initial contributors to the capital of TTUTC were the Central Bank of Trinidad and Tobago (CBTT), the National Insurance Board (NIB), various local commercial banks, non-bank financial institutions and insurance companies.

Since its inception, the corporation has evolved and expanded to become one of the largest financial services companies in Trinidad and Tobago with funds under management as at December 2023 of TT $24.5 billion. 

The TTUTC now manages nine mutual funds consisting of the TT Dollar Income Fund, the US Dollar Income Fund, and the UTC Corporate Fund (three fixed-income funds), as well as the Growth and Income Fund and the Universal Retirement Fund (two balanced funds), the Calypso Macro Index Fund (closed-ended equity fund), and three Global Investor Select ETF Funds. 

TTUTC offers a range of services including debit card services, merchant banking services, bond processing, pension fund management, and trustee services. The corporation’s client base stood at 526,732 unitholders as at December 2023.

The TTUTC’s funds under management as at September 2023 represented approximately seven per cent of assets in the Trinidad and Tobago financial system.

Given its size and importance to the financial services system as a financial intermediary, in 2013, it was designated as a systemically important financial institution (SIFI). 

The corporation is regulated by the Trinidad and Tobago Securities and Exchange Commission (TTSEC), the CBTT and the Trinidad and Tobago Stock Exchange (TTSE).