The Unit Trust Corporation (UTC) has made a strong recovery from its $44.5 million loss caused by the coronavirus pandemic in the first quarter of 2020, unaudited results have stated.
For the three months ended June 30, the UTC posted Net Income of $73 million and overall Net Income of $28 million over the first six months of the year after seeing declines related to the market turmoil in the first quarter.
Assets Under Management rose to $22.90 billion in the second quarter 2020 compared with $22.60 billion in the same period a year ago.
The UTC attributed its second-quarter gains to proactive, research-driven investment strategies.
“The COVID-19 pandemic continues to define ‘the new normal’ affecting investment portfolios, markets and the broader economies. Our Corporation has maintained its deliberate and strategic approach of protecting ‘lives’ whilst continuing to focus on retaining and growing the wealth of our Unitholders,” Gerry Brooks said in the chairman’s statement.
“We caution, however, that the health and economic uncertainties associated with COVID-19 continue to be elevated. Recent resurgences of the virus in many jurisdictions and markets can easily reverse hard won gains from prudent investment strategy and market rebounds from Quarter One (Q1) lows,” he stated.
Brooks said the UTC’s timely interventions to pro-actively protect and grow values of our portfolios provided an anchor for improved performance in the second quarter.
“Notwithstanding the significant improvements in Q2, half year results were $36 million less than the corresponding prior last year. This is a stark reminder of the insidious effect of COVID-19 in markets and broader economies,” Brooks stated.
“The Corporation continues to be cautiously optimistic that short-term market volatility will not impair long-term growth prospects. Our team is committed to continuing our strategic, professional and researched approach to ensure our Unitholders benefit from the safety, thoughtfulness, strength and stability that the Corporation has traditionally provided. Notwithstanding the market volatility and uncertainty, our team remains confident about our ability to successfully navigate the future,” he stated.
“We are staying focused and will keep building on our strengths even as we navigate the challenges ahead,” said Nigel Edwards, the UTC’s Executive Director.
The UTC’s upbeat second-quarter earnings report follows the opening of a new Investment Centre in the city of San Fernando, complete with an Enterprise Suite for its business customers, and significant investments in its digital infrastructure which will improve the customer experience across the board the UTC noted.
