The Unit Trust Corporation’s (UTC) Calypso Macro Index Fund (Calypso) has recorded a Total Comprehensive Loss of $104 million for the nine months ended September 30.
This is compared to Total Comprehensive Income of $23 million for the comparative period ended September 2019 or a decline of 552 per cent.
In the fund’s financial statements, Chairman Prof Gerry Brooks said: “The Total Comprehensive Loss worsened by $19 million when compared to the six months ended June 30, predominantly owing to price declines experienced on the Fund’s energy ETFs (Exchange Traded Funds), which are reported in the line item Net Change in Fair Value of Investment Securities.”
Brooks reminded investors that the Fund’s fair value losses are primarily non-cash fair movements resulting from the COVID-19 related economic slowdowns being experienced globally.
Despite these unfavourable fair value movements, Brooks added that Calypso continued to make distributions: as at September 30, the Fund paid $0.16 per unit compared to $0.20 for September 2019.
He said that the lower dividend resulted from reduced payouts from several companies, as they sought to preserve capital to weather the current economic headwinds.
According to Brooks, Calypso continues to comprise high quality investments, both locally and internationally He asserted: “We therefore remain optimistic that short-term price volatility, even of the current extreme nature will not diminish the long-term prospects of the underlying businesses and industries reflected in the portfolio holdings.”
The Calypso Macro Index Fund is a closed-end mutual fund denominated in T&T dollars, that was launched on January 8, 2016, and is scheduled to terminate on the redemption date of November 30, 2025, or such later date as may be prescribed by the Regulations of the Fund.
According to UTC, the Calypso Fund is managed by the Corporation, which may charge a fee of no more than 0.5 per cent of the net asset value of the distribution period. The total management fees for the period amounted to $1,608,094.