Are Your UTC Investments Still Safe? What Consumers Need to Know About the End of the Growth & Income Fund Guarantee
By CAIR — Consumer Advocacy & Information Resource
Millions of Trinidad and Tobago savers have invested with the Unit Trust Corporation (UTC) over the past decades. For many, the longstanding price guarantee on certain funds — particularly the Growth & Income Fund — offered peace of mind: it provided an assurance that if the fund’s Net Asset Value (NAV) fell, long‑term investors (three‑year minimum) could still exit at their original price. That guarantee has been in place for about 40 years.
However, a significant change is taking place starting February 2, 2026: UTC is removing the price guarantee for new contributions and reinvested distributions made after that date, while existing balances invested before the cut‑off will continue to carry the old guarantee. This does not mean your money is “unsafe”, but it changes the way your investment risk works. Here’s what consumers in Trinidad & Tobago should understand.
1. What Actually Changed
Effective February 2, 2026:
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Existing balances invested before this date will retain the price guarantee under the old terms.
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New money invested after this date — including new capital, additional contributions, and reinvested distributions — will no longer have the guarantee and will be fully market‑linked.
This reflects a shift to normal mutual fund behavior where value fluctuates daily with market conditions.
📉 2. What “No Guarantee” Means for Your Portfolio
Before Feb 2, 2026
Your investment behaved like a hybrid:
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It earned returns based on market performance.
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But the price guarantee offered protection if the NAV declined over time (particularly relevant for equity components).
This guarantee had a liability value — for example, the liability linked to this mechanism increased significantly due to market declines, rising from around TTD 9 million to TTD 86 million in 2024 — which is one reason UTC decided to phase it out.
After Feb 2, 2026
New funds behave like typical mutual funds:
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Your investment’s value will rise and fall with the Net Asset Value (NAV) of the fund.
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There is no contractual floor or guarantee ensuring you can redeem at a price higher than the NAV.
This doesn’t make the funds unsafe, but it exposes your new investing to normal investment risk — gains if the market does well and losses if it weakens.
📊 3. UTC Funds and Market Dynamics
UTC’s mutual funds — including the Growth & Income Fund and the Universal Retirement Fund (URF) — are diversified investment pools consisting of equities (like local company shares) and government or corporate bonds. NAVs reflect the current market value of these underlying assets.
According to UTC’s own recent financial reporting:
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Market movements can be positive or negative — in 2024, the Growth & Income Fund NAV declined about 5% due to broader market shifts.
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The corporation continues to pay distributions and manage diversified portfolios for long‑term value.
🛡️ 4. Are UTC Funds “Safe”?
Let’s be clear about the terminology:
Not “Guaranteed” After the Cut‑off
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New contributions do not carry the old guarantee.
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The NAV may go up or down with markets — so short‑term fluctuations could reduce the value of your investment.
Still Professionally Managed
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UTC funds are run by professional investment teams with risk management and diversification strategies.
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The corporation has strong creditworthiness ratings (e.g., CariCRIS CariAA on regional, ttAA on national scale), meaning it is considered financially stable.
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These funds are not deposit insurance products — meaning they do not carry protection like bank deposit insurance. However, similar to mutual funds globally, they aim for long‑term growth rather than short‑term guarantees.
Past Guaranteed Portions Still Covered
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If you held money in a qualifying UTC fund before February 2, 2026, that portion still has the original guarantee for its terms (e.g., three‑year conditional protection). But only for existing balances — new contributions have no such fallback.
5. What This Means for You
If You’re a Long‑Term Saver:
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Existing investments continue to benefit from earlier protections up to the guarantee’s conditions (e.g., holding period).
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This means long‑term objectives like retirement savings remain intact under your old terms.
If You Plan New Contributions:
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Your new money will behave like standard market‑linked investments.
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It’s even more important now to understand market risk, diversify your portfolio, and align contributions with your goals.
If You’re Close to Retirement:
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Consult a financial advisor about the best mix of investments to balance growth with risk management.
6. Key Takeaways for Consumers
✔️ Your money is not suddenly unsafe — UTC funds remain professionally managed and backed by a stable financial institution.
✔️ Only old guaranteed portions are still protected; new capital will be exposed to normal market risk.
✔️ NAV reflects daily market valuations — this means portfolios can gain and lose value over time.
✔️ Investors should now think in terms of investment risk and long‑term planning, rather than guarantees.
Final Note
The removal of this historic guarantee marks a shift toward modern investment practice in Trinidad and Tobago — aligning UTC funds with global standards of market‑linked mutual funds. This change underscores the importance of understanding risk, planning for the long term, and being an informed investor.
If CAIR’s audience would like a consumer checklist or guide on how to review and adjust their savings plan now that guarantees are phased out, I can prepare that next. Just let me know!
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