UTC records $19m third-quarter profit

The Unit Trust Corporation maintained its post-pandemic rebound, posting a $19 million profit for the third quarter 2020 – four per cent higher than the same period last year.

Total comprehensive income (less other comprehensive losses) was 18.3 million, or 1.7 per cent lower than last year. Net income for the first nine months of 2020 was $47 million or 42 per cent lower year-on-year, but still positive considering the corporation’s $45 million loss in the first quarter – although not as good as the $73 million second quarter profit.

“We have maintained our very proactive and vigilant stance in the face of the volatile market conditions created by the covid19 pandemic,” UTC chairman Gerry Brooks said in his report accompanying the financials.

He attributed lower profits directly to an increased price guarantee provision as compared to the prior year (a type of consumer protection against fluctuating markets); lower local and international interest rates; lower dividend pay-outs; and stock market declines.

He was encouraged by the $600 million inflow of new funds from investors during the period, despite the temporary decline in market performance.

“We believe this demonstration of confidence is testament to the corporation’s continuous focus on retaining and growing the wealth of our 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,” he said.

He noted the UTC’s investments in technology over this year, resulting in “an elevated level of operating expenditure” over the next 12 months.

“Once implemented, they will improve stakeholder value. Consequently, we are both confident in and excited about the future and shall provide more information in subsequent reports,” Brooks said.