Friday 12th October: The Unit Trust Corporation (UTC) wishes to clarify its position relating to the ADB VSEP loan plan and outlines the following :
In 2003, several Caroni VSEP recipients opted for a product offered by the Agricultural Development Bank (ADB) where they were allowed to borrow funds, against investments held in the UTC’s Individual Retirement Unit Account (IRUA). The IRUA is a plan within the First Unit Scheme (FUS) also called the Growth and Income Fund. One of the most noticeable features of the FUS is that it carries a price guarantee. The guarantee mechanism requires the investor to hold the funds in the FUS for a minimum of three years. Once the three year threshold is crossed in the event the unit holder sells the units and there is a shortfall between the price at which the units were purchased and the price at which the units are sold by way of redemption the investor is entitled to have any such short fall made good by the Unit Trust Corporation.