Oct 2015 Financial News

UTC launches first domestic index fund

Oct 12, 2015

Unit Trust Corporation (UTC) executive director Ian Chinapoo says launch of the Calypso Macro Index Fund validates the UTC’s position as a pioneer in T&T’s financial industry and sets the bar for others to emulate.

“It is the first ever domestic index fund in the Caribbean. The fund essentially is T&T’s version of the S&P 500 where the elite traded companies are listed and whose performance is tracked by global analysts,” he explained during the official launch yesterday at the Hyatt Regency in Port-of-Spain.

The Calypso Macro Index is the first of its kind in the English-speaking Caribbean, as well as the first UTC Fund to be listed on the T&T Stock Exchange. It is a close ended fund with an initial value of $500 million where 20 million units will be sold at a price of $25 per unit.

Once subscribed, investors can buy from or sell to others directly via the T&T Stock Exchange for up to ten years. Each unit will comprise 16 top, locally listed companies, as well as close to 100 energy companies from across the globe.

The UTC will be doing an initial public offering which starts on Monday and ends four weeks later on November 6. The minimum initial investment is $1,000 and investors may buy or sell units through a registered broker.

Chinapoo, who noted that the founding principle of the UTC calls for long term wealth creation, said: “More than 30 years ago, our only mandate was to allow the average person in T&T to become part owner of some of the most productive assets in the country, those companies that were listed on the stock exchange.

“In 1982 when the UTC started, there were 32 listed companies and the total value of shares or the market capitalisation was $2.8 billion. Today, there are 36 traded companies and the market capitalization is now $110 billion. We feel proud that we have been able to allow our unit holders to share in that growth over the last 33 years.” He said the fund serves the interest of investors as it provides diversification.

Source:
Rapheal John-Lall
Trinidad Guardian
Saturday October 10, 2015

http://www.guardian.co.tt/business/2015-10-10/utc-launches-first-domestic-index-fund