Sterling Investments pays USD dividends during COVID-19

Sterling Investments pays USD dividends during COVID-19

BY ABBION ROBINSON
Business reporter
robinsona@jamaicaobserver.com

Sunday, June 21, 2020

Print this page Email A Friend!


A midst a relatively bleak pandemic-induced climate for many listed companies, Sterling Investments Limited (SIL) has paid out dividends totalling US$89,042 to shareholders.

While the Bank of Jamaica (BOJ) in April had ordered that local financial holding companies and deposit-taking institutions suspend the distribution of dividends for the 2020 financial year, SIL — which is managed by Sterling Asset Management — is an investment holding company and as such does not fall under BOJ's purview.

The company invests primarily in an array of fixed income securities and private equity investments denominated in United States dollars.

According to chairman Derek Jones, the value of SIL's investment strategy is particularly strong and relevant amidst times of crisis.

“Remarkably, SIL's interest income has not been affected by the pandemic-induced slowdown, and investors will therefore continue to benefit from the US-dollar income generated by the portfolio,” he stated.

SIL attributed its stable US dollar dividend payments largely to its unwavering focus on high-quality bonds and grade-rated companies.

Over 72 per cent of the bond portfolio is invested in instruments issued by investment-grade rated companies. SIL shareholders, the company said, are thus benefiting from its exposure to these high-quality issuers.

“Having emerged from a bruising in the first quarter, SIL — which still recorded a net profit for the three-month period ended March 2020 of $4.6 million compared to a loss of $7.2 million recorded during the corresponding period in March 2019 — has continued its investment strategy into second quarter and with global markets beginning to recover, its strong liquidity position remains an advantage,” SIL stated.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaper-login


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT