Home' Trinidad and Tobago Guardian : October 17th 2013 Contents BG4 | COVER STORY
BUSINESS GUARDIAN www.guardian.co.tt OCTOBER 2013 • WEEK THREE
Investing in the First Citizens initial public offering (IPO)
was lucrative for the Unit Trust Corporation (UTC),
says its executive director Ian Chinapoo, with the invest-
ment company s paper profits at $79 million after one
UTC applied for and received 6.06 million shares in the
First Citizens IPO, which was exactly half of the 25 per cent
of the shares offered to mutual funds and 12.5 per cent of the
48,495,665 shares sold by the Government, Chinapoo said in
an interview with the Business Guardian on Monday.
The acquisition of shares makes the UTC one of the largest
holders of First Citizens shares coming out of the highly suc-
cessful share sale and one of the single largest First Citizens
shareholders apart from the Government, which retained 80
per cent of the company.
Chinapoo said: "There was a specific allocation for the
mutual fund industry, of which UTC is a part. We bid and
we were able to get our full allocation in the IPO. We would
have bid for our full allocation, so I think we would have ended
up - the mutual fund industry was allocated five per cent, we
would have received 2.5 per cent of First Citizens" overall.
The UTC spent $133.32 million acquiring the 6.06 million
shares at $22 each. Those shares are worth $212.1 million today
at $35 a share each---a profit of nearly 60 per cent in one
month for T&T s largest and oldest mutual fund company.
"The market has gone up and that s always wonderful. Our
initial investment has already appreciated in value and the
investment was made across several of the funds. All the
unitholders, I expect, would have benefited from that. My
only regret was that it wasn t a bit more, so that we could
have invested more," he said.
Chinapoo, who took up the appointment as executive director
of the Unit Trust Corporation (UTC) in June, spoke to the
Business Guardian on Monday at its Independence Square,
Port-of-Spain head offices.
He was appointed by the UTC board, which is chaired by
former Finance Minister Wendell Mottley.
Chinapoo, a graduate of St Mary s College, brings to UTC
his experience in the banking sector having worked for Citibank
International in Miami and CIBC FirstCaribbean. For him it s
all about bringing new things to the organisation.
Looking at the trends in its funds, he said the UTC Energy
Fund is it s "best performing" international fund and it s
around "US$3 to US$4 million equivalent. It s not big, but it s
done well. It has been an exceptional performer, but it s still
"Our North American fund has generated over 11 per cent
year-to-date and our Universal Retirement Fund has generated
almost ten per cent return year-to-date. Our Growth and
Income Fund, which has both local and international invest-
ments, is just under six per cent, so when you look at that
performance - it has been helped by asset selection in the
equity markets, a portion of that is in the US markets as well,"
The corporation s European Fund "is up eight per cent."
Trends Chinapoo has observed in the US market include:
"Commodities remain high, manufacturing is doing well, but
financial services is expected to be the one that performs
pretty well. We have done good investments in the US corporate
paper as well - companies like Pepsico, Verizon, McDonald s
have all shown some good performances and we ve gone into
Given the dynamics of the global economy within the last
quarter, the biggest challenge continues to be unpredictability
and "short cycles."
Asked whether UTC planned to introduce new products to
the T&T market, Chinapoo said: "Our funds are quite full.
We have over $20 billion under management and we have $3
billion looking for a home. We are looking at further leveraging
our investment centres."
Profit figures in the next two quarters for the corporation
is expected to be "a little flat" because UTC has been looking
at specific capital investments and it is "not part of a global
bank or financial services company who just rolls out technology
across the region."
"We have to spend and develop our own proprietory systems.
We have to do investments to keep our technology at the levels
we want it to be."
Overall, "the largest fund is about $11 billion and then, we
have two others around $4 billion in size. So you are looking
at some fairly large investments that people have made into
the UTC which we are proud to be a repository of their con-
fidence. The challenge is finding investments and that is where
we are focusing," Chinapoo said.
The US portion of its funds is where the UTC is looking
to increase because, "right now we are about three-quarters
local currency and one-quarter US dollars, so we d like not
to reduce the size of the funds, but to increase the portion
that is US dollar-based so that we can have more options on
UTC profits from IPO
Continued on page 5
Executive director of the UTC Ian Chinapoo
PHOTOS: BRIAN NG FATT
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