Robo-Advisers: How should you evaluate them?

This week’s article focuses on how you, the investing public, should evaluate a robo-adviser to determine whether it meets your needs. Robo- Advisers are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. Essentially, this involves a computer programmer creating software that provides investment advice to the clients of a financial services firm, based on parameters that are tied to their investment strategy. It offers the convenience of being able to access financial advice from your smartphone or computer. 

Robo-Advisers have had a global presence since 2008. In Trinidad and Tobago, there have been platforms in existence since October 2019. According to Statista1, assets under management in the robo-advisors segment within the United States, are projected to reach US$937 billion in 2021 and are projected to be US$1.9 trillion by 2025. No specific guidelines for robo-advisers exist locally, however the provisions for investment advisers within the Securities Act (as amended) 2012, provide the basis for regulating potential market entrants which provides a foundation for a regulatory framework. 

Any potential entrant will be subject to the same registration and

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Material Change Disclosures and COVID-19

The Novel Coronavirus (“COVID-19”) pandemic has caused disruption of varying levels and continues to affect many nations across the globe. This widespread disruption has impacted companies in different ways and has resulted in new and innovative ways to ensure business continuity and in some cases, has caused a negative impact on operations and profitability. In the case of impacted entities which are registered as reporting issuers with the Trinidad and Tobago Securities and Exchange Commission (TTSEC) certain disclosure based legislative reporting requirements are required to be completed in order to maintain transparency and for the benefit of the investing public. In this article, we will focus on the issue of material change disclosures during this unprecedented period and its importance to investors when assessing the affairs of a reporting issuer. 

A reporting issuer is an entity that is registered with the Commission pursuant to Section 61(1) of the Securities Act, 2012 (“the Act”). A reporting issuer can be broadly defined as an issuer that issued securities under a prospectus or has its securities traded in a securities market. Reporting issuers are obligated to provide investors with complete, accurate and timely information as part of their continuous disclosure requirements. 

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Is Cryptocurrency a Security?

There are several developed and emerging markets with cryptocurrency platforms operating within their jurisdictions. In these jurisdictions, cryptocurrency-based transfers are becoming increasingly common and are used to transact on a day to day basis. This week’s article will focus on cryptocurrencies and whether they are considered a security within the Trinidad and Tobago market. 

What is a cryptocurrency? 

Cryptocurrencies also known as virtual assets refer to a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes, including digital representations of value that function as a medium of exchange, a unit of account, and/or a store of value (FATF). Most crypto exchanges are unregulated, so it’s important to consider the risks before any investment decision is made.

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Collective Investment Schemes-A Guide for Investors

It is important as an investor to understand all aspects of the securities industry. Investors can consist of individuals, corporations, governments, pension plans or other entities. Individuals generally invest to obtain a financial return, save for retirement or achieve other financial goals. Despite the purpose, investors may share the same goal of generating high returns whilst minimising risk. In order to do so, it is imperative that investors understand the dynamics of  ifferent types of investment products and how their investments can be beneficial to them. In this week’s article, we discuss the Collective Investment Scheme (CIS) market also commonly known as the Mutual Fund market.

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Mutual Funds: Fixed NAV vs Floating NAV

Mutual Funds: Fixed NAV vs Floating NAV

As we embark on another new year, one of the more common resolutions is not only to increase our level of savings, but also to develop additional sources of wealth and revenue generation. The securities market presents many different options for individuals to achieve these goals with products such as equities, bonds and Collective Investment Schemes (CIS), the latter of which is the focus of this week’s article. CISs, which are generally known to the public as mutual funds, are investment vehicles, which allow for the pooling of investor resources to create a more diversified portfolio while taking advantage of the benefits of large-scale investment opportunities. In mutual funds, investors effectively own portions of the overall pool through units/shares, which are proportional to their contributions. 

The mutual fund manager utilises this pool of money to invest in securities congruent with the fund’s investment strategy. Investors can earn returns through distributions or capital appreciation depending on the fund’s performance. 

The mutual fund market has grown significantly since the Trinidad and Tobago Unit Trust Corporation was established, in 1981 . On this point, as at November 30, 2020 the market boasts of 69 mutual funds, collectively managing approximately TT$58.92 Billion in assets.

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