Ever wanted to buy some rice or corn futures? Ever wanted to buy some shares in Google Inc or even invest in Latin America's leading economy, Brazil? If you are the average Jamaican investor, then your chances of doing so are basically nil.

In the last six months, if you were able to buy oil futures at US$80 per barrel, then you would have realised 50 per cent on that investment today. This is significantly greater than the 7-8 per cent per annum that is currently being paid on sovereign debt. So there is all this talk about the price movement of oil, and here we are, in the middle of the Caribbean Sea, with no direct way of benefitting from this price increase.

There is also the newly common term "food crisis" being drifted through our oratory nerves and is in fact a great cause for concern in nations around the world. But why not convert a possible crisis into a golden opportunity? The price per tonne of Grade B Thailand rice has jumped 50 per cent since December 2007 to now stand at US$1,000 per tonne. How interesting?

Visa Inc had its remarkably successful IPO in February of this year, when the shares listed at US$44 per unit. As at close of trading yesterday, the stock price was at US$85.50.This missed opportunity may be saddening for the average Jamaican investor, but if one were able to clutch some of these shares, then he/she would have been up 93 per cent on that investment in just under three months.

Realistically, in Jamaica, about 60 per cent of our investments are in bonds and Government paper. The remaining 40 per cent is split among stocks and unit trusts and mutual funds for the most part. How limiting! A few investment houses in Jamaica have sought to widen their investment boundaries through the offering of mutual funds and even Principal Protected Notes. Even so, mutual funds are not of our own creation and Investment companies in Jamaica are mere "railways" for the global investment firms like CI Funds and AIC to extend their product reach.

How do we address this
The fact is there are many Jamaicans who are more than willing and ready to become that "Global Investor", so we need to do what is necessary to meet the desires of the Jamaican investing public. The problem with our economy and by extension, our financial market, is that everything takes too long to get done. And so, the Jamaican financial market just sits idly by and allows markets to develop and regrettably pass us by in our 'development' plight.

DEPOSITORY RECEIPTS
Depository receipts are the primary medium through which less developed financial markets of the world are able to partake of bountiful investment opportunities in the global marketplace. A depository receipt is basically a certificate for shares in a foreign company issued by the local branch of a bank that is based in that company's country of origin. These shares trade as domestic shares, but are offered for sale globally through these bank branches. Depository Receipts are an excellent way for companies to raise capital globally.
This investment medium fuels investor appetite and in turn has an explosive growth in the domestic financial market.
Surprisingly for some, but quite expectedly for me, the Trinidad & Tobago financial market will be launching depository receipts in June of this year; as matter of fact, next month. These depository receipts will be done for the sale of the Royal Bank of Canada (RBC) shares. As sad as it is to say, Jamaica will once again have to FOLLOW suit.

China Life Insurance Company is the largest life insurer in China, and is listed on the New York Stock Exchange. Wondering how this was done? You guessed it, depository receipts. Imagine a Jamaican company being able to raise capital by listing on the US Stock Market. It may sound extremely ambitious, but 'ambition' is my favourite word and the fact is, it is simple to get done.

Too often I hear investors complain about the limited investment opportunities in our local financial market. There are many of us who are willing and able to assist in getting new innovative products underway, but for now all we can do is write and implore. Jamaicans excel at a lot of things globally; why not excel at making money? These are just my thoughts!

Ryan Reid is an equity trader & analyst at Stocks & Securities Ltd. rreid@gostocksandsecurities.com.

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