COLLECTIVE INVESTMENT SCHEMES INDUSTRY REVIEW

The Commission, as the regulator of the securities industry, has oversight of all Collective Investment Schemes (CISs) in Trinidad and Tobago. The issuers of CISs are registered with the Commission as BrokerDealers under section 51(1) of the Act. They are also subject to the requirements contained in the Act, the By-Laws 2015, the CIS Guidelines and the Promotion Presentation Standards1

The CIS industry continues to be a significant part of the economy as underscored by its relative size to the country’s Gross Domestic Product (GDP). As at December 31, 2016 the industry’s Assets Under Management (AUM) to GDP was approximately 32.94 percent and averaged approximately 28 percent over the period.

Table 1 illustrates the growth of the CIS industry’s AUM relative to the country’s GDP for the period 20102016.

During the 2016 calendar year, there were 65 active CISs sponsored by 15 issuers who collectively managed TT$48.07 billion in AUM as at December 31, 2016. AUM grew by an estimated 18.04 percent cumulatively over the 2010 – 2016 period and recorded an average growth rate per annum over the period of 2.58 percent (Figure 1).

Source: Trinidad and Tobago Securities and Exchange Commission

Source: Trinidad and Tobago Securities and Exchange Commission

1 The Commission also issued Policy Guideline 11.1, “Mutual Funds – Distribution of Securities of Foreign Mutual Funds in Trinidad and Tobago” in 1998, and which was amended in 2007.