The Unit Trust Corporation (UTC) recorded a total comprehensive income of $47 million for the nine month period ended September 30, 2020, which was a 46 per cent drop from the same comparative period last year.
For the nine month period ended September 30, 2019, the UTC recorded a total comprehensive income of $81.753 million.
“We have maintained our very proactive and vigilant stance in the face of the volatile market conditions created by the COVID-19 pandemic,” UTC’s chairman Gerry Brooks stated.
For the period April to September the UTC recorded net income of $91 million.
Brooks said the UTC’s Net Income for the nine-month period of $35 million was still, however, 42 per cent below the corresponding prior year period.
“This decline was the direct result of an increased price guarantee provision (as compared to the prior year period), lower local and international interest rates, lower dividend payouts, and stock market declines,” he stated.
“Despite the temporary decline in market performance, we are encouraged by the approximately $600 million inflow of new funds from investors during the nine-month period and improved performances in quarters two and three,” Brooks stated.
Brook said this demonstration of confidence is testament to the UTC’s continuous focus on retaining and growing the wealth of its unitholders.
“Although conditions may be difficult, the Corporation’s purpose and resolve remain the same: we are committed to ensuring that our Unitholders benefit from the safety, strength, and stability that we have always provided,” Brooks stated.
“The Corporation has recently completed its strategic plan, which will build on these strengths. We have placed particular focus on leveraging new technologies and we are in the process of implementing deliberate and fundamental changes to the architecture of our information systems. We wish to advise that the cost of these investments will substantially be recorded as an expense when incurred and investors will see an elevated level of operating expenditure over the next 12 months as these projects begin to accelerate,” he stated.
Brooks said once implemented, they will improve stakeholder value.
“Consequently, we are both confident in and excited about the future and shall provide more information on these initiatives in subsequent reports,” Brooks stated.