Mayberry Investments, who this year listed on the Jamaica Stock Exchange (JSE), put in a disappointing performance for the third quarter ended September 30, 2005 largely as a result of Jamaican stocks continuing to experience a bear market.

Unaudited results for the September quarter reveal interest income for the quarter under review fell from J$518.6 million last year to J$402 million for this year's September quarter. Mayberry posted a year-to-date interest income figure of J$1.2 billion.

Net interest income also fell in the September quarter from J$68 million the previous year to J$47 million for the current period under review. Year to date net interest income and other operating revenues came in at J$374 million compared to J$600 million for the same period last year, a decrease of $226 million.

Mayberry suffered a loss of $118 million for the quarter under review. This is even more glaring bearing in mind it made a profit of J$141 million for the same period last year.

Its year-to-date net profit was $117 million compared to $325 million for the corresponding period last year. The company says this was due to a negative movement in the unrealised mark to market losses of $325 million year over year, which was partially offset by a $99 million increase in realised revenue.

This quarter was not all gloom for Mayberry. Realised revenue for the quarter under review stood at J$168 million; an increase of over 250 per cent over the previous year, which was offset by unrealised mark to market losses of J$242 million.

Total assets of J$16.7 billion also fell slightly below 2004's figure for the same period, which was J$17.3 billion.

To compound matters further, administrative expenses also increased. For the nine-month period administrative expenses stood at J$341 million compared to J$238 million for the similar period last year. Mayberry puts this down to having to increase its staff complement and escalating overhead expenses. The company also had to write off J$20 million in Dyoll shares as the insurance company got enmeshed in an insolvency drama.

Speaking with Caribbean Business Report last night, Mayberry's CEO, Gary Peart, said: "There is no question that we had a disappointing quarter. We couldn't offset the decline in our stock portfolio, but the stocks we hold have value and as the market rebounds we are expecting to post better results. I must stress here that the investment revaluation is unrealised. We will now look to contain expenses."

Mayberry's share price climbed from an all-time low of J$1.81 on Wednesday to J$2.10 at the close of trading yesterday.

Mayberry to distribute GK fund

Mayberry and GraceKennedy finalised an agreement on October 13 under which Mayberry will distribute the GK Caribbean Fixed Income Fund, a mutual fund being marketed by GK Funds, a GraceKennedy company.

Launched in the Cayman Islands in September 2002 and listed on the stock exchange there, the fund is targeted to the high-end market, consisting primarily of persons who are able to make an initial investment of at least US$10,000. The fund is now available to the Jamaican market through Mayberry.

"This is a significant target market for us at Mayberry," says Gary Peart, Mayberry Chief Executive Officer, "and we are delighted to be able to make this product available with less risk than we would have had otherwise. We consider GK Funds an important component to our commitment to provide superior products and services to our clients."

For his part, Oliver Chen, Vice-President for Mutual Funds at First Global Financial Services under whose portfolio GK Funds falls, said: "We at GK Funds welcome Mayberry Investments Ltd to our distribution network. While this relationship may appear to be new, GraceKennedy and Mayberry go back to the days of its founder, the late Maurice Berry. Our present alliance will be beneficial to both companies. Mayberry's clients will have an opportunity to invest in the GK family of funds and in this instance, the GK Caribbean Fixed Income Fund, our flagship product.

The fund was established in the Cayman Islands in September 2002 to provide a unique product for Caribbean investors. Opportunities for diversification were identified as a key need within the Caribbean and the fund was established to address this. The fund invests primarily in US dollar sovereign debt instruments throughout the Caribbean, and has performed well since its inception, with an average annual yield of 6.5%. For these reasons, our product is ideal for our Jamaican investors who wish to hold US dollar denominated securities, and who are seeking the benefits of diversification. The fund is currently registered for distribution in Cayman, Barbados, Trinidad, Jamaica and in The Bahamas."

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