Finance Minister Davendranath Tancoo has defended the recent decision by the Unit Trust Corporation to discontinue the Price Guarantee Provision on new subscriptions to its Growth and Income Fund, effective February 2nd, 2026.
Responding to a question in the Lower House on Friday, he assured that the UTC remains a strong, well-regulated financial institution.
Minister Tancoo explained that the Price Guarantee, which was introduced in 1985, was originally designed to encourage citizens to participate in market-based investments.
“The Unit Trust Corporation has matured, investor awareness has improved, and the regulatory environment has strengthened. In that context, Mr. Speaker, the Corporation conducted a strategic review of the Growth and Income Fund, including its structure, obligations, and long-term sustainability. Following that review, the Board of Directors determined that the price guarantee, while useful in the earlier infant years of the Fund, is now a legacy feature, which creates a continuing financial obligation for the Corporation when market values decline.”
The Finance Minister described the decision as a responsible and necessary step, noting that it aligns the Fund with international best practice.
He emphasised that the move should not be interpreted as a weakening of the Fund or a reduction in investor protection.
“This change does not mean that the Growth and Income Fund is unsafe. It does not mean that the Unit Trust is abandoning prudent management. It does not mean that investors should lose confidence in the Corporation. In fact, Mr. Speaker, this action brings the fund on par with international best practice. The Fund will continue to be managed in accordance with sound investment principles, strong governance standards, and applicable regulatory requirements.”