Hard sign of economic times; Belize Unit Trust prepares to fold

When they started out in 2003 the Unit Trust Corporation of Belize Limited didn’t foresee a weak economy. So after eight and a half years, the business, which is a subsidiary of the Trinidad and Tobago Unit Trust Corporation, will be closing down. At the closing of the fund which was on June tenth, there were some three thousand six hundred unit holders and a fund size in excess of seven point six million dollars. The Trust, which offered an alternative option for saving money, will be refunding their clients the monies in their accounts plus interest up until the end of June. Leticia Murillo, C.E.O. of the Unit Trust, spoke to News Five about the imminent closure.

Leticia Murillo, C.E.O., Belize Unit Trust

“Basically what happen is that the funds size didn’t grow as fast as we had hoped and so the corporation will not be able to cover it’s operations if the funds size is not of a critical size; So we had experienced some significant growth over the years but we just didn’t get it to where we would have wanted it to be and so the Board decided that you know rather than anticipate it growing in an economy like many others that is struggling  at this point in time, and it’s difficult for people to save then the Board decided that it’s a good time to call it off and to make sure that people are able to get back exactly what they had put into their accounts plus the interest that they had earned.”

Andrea Polanco

Leticia Murillo

“I understand that the Unit Trust had to decrease the rate that they were offering as well, which was the result of what?”

Leticia Murillo

“Well when we started in 2003 based on the returns that we were getting we were able to pay seven percent interest at that point in time and that continued for several years but in 2008 we reduced our rate to three point nine five percent and the main reason for that was umm that the we had invested in the GOB bond and the rate on that bond was restructured and restructured downward at least temporarily because over time it has started to go back up but that impacted the rate that we were able to pay and so at that time we had to reduce our rate because the rate that we pay is really a reflection of what our investments are paying.”

Andrea Polanco

“Did you all maybe looked to an alternative option of maybe funding to keep the Corporation going knowing that you have a large client base here in Belize?”

Leticia Murillo

“Well we’re a subsidiary of the Trinidad and Tobago Unit Trust Corporation and they have worked with us very closely over the years. I think that they well I know it’s a very prudent organization and I think that they looked at all the options and this was the best option.”

Unit holders have up until the end of July to collect their money from the Unit Trust’s office. For next year the Unit Trust’s Liquidator, PKF, will deal with the customers payments.