JMMB Fund Managers Limited (JMMBFM) has reported a 520 per cent growth in its funds under management (FUM) over the last five years.

The entity, which is a subsidiary of the larger JMMB Group, said in a recent statement that the growth in its portfolio now pushes the entity in third position, with over $41.2 billion in funds under management — having outpaced other brokers, NCB Capital Markets and Barita Unit Trust.

“This growth has been largely driven by the client partnership approach taken by JMMB to assist clients to achieve their goals and the changes in the investment environment,” said chief executive officer of JMMB Fund Managers Christopher Walker.

In a comparative analysis, the subsidiary indicated that during the same five-year period, Jamaica’s collective investment schemes (CIS) market, which consists of unit trusts and mutual funds, almost doubled its funds under management — moving from $146.6 billion in March 2016 to $307 billion up to August of this year. This it said has also led to a significant increase in the number of players and offerings in the market which now comprises approximately 11 fund managers and over 72 collective investment schemes.

Further commenting on the growth of the portfolio, Walker said that the fund, notwithstanding impacts stemming from regulatory changes made by the Financial Services Commission, was able to realise significant gains as a result of the entity’s commitment to client partnership and education.

“In educating our clients we support them in understanding attendant risks and the varying benefits of investing in these diversified investments solutions and the benefits of improving the overall rate on return on their respective portfolios,” he stated while underscoring the solid foundation built by JMMB in the unit trust market as another key pillar of the fund’s growth.

He noted the changing investment environment as another factor which has propelled investors to become savvier in seeking opportunities for greater return on their investments over the long term.

“With a low interest rate environment, collective investment schemes, like unit trusts, have become more attractive in delivering value. Unit trusts have proven to provide above-average returns when compared to other assets of similar risk.

“Using the a typical money market fund, which is a more conservative fund, investors saw more than 2.5 per cent annualised returns, on average, over the last 3 years when compared to a savings account that offered individuals less than 1 per cent over a similar period. In addition, even with nominal capital, this investment allows small and large investors alike access to a wider range of assets,” he explained.

The CEO, in linking the increased appetite of investors to the entity’s growth performance, also said that returns on equities over the five years has likewise seen a growth of over 800 per cent in JMMB’s income and growth fund. “This reflects clients’ appetite for better returns and greater risk tolerance in pursuit of their goals. JMMB Optimum Capital (unit trust) Fund, which consists mainly of real estate and fixed income investments, has also seen a noteworthy increase in its funds under management, growing by 539 per cent over the similar period.”

JMMB Fund Managers, through its current suite of offerings comprising some eight unit trusts, said it is also seeking to increase its suite of offerings this financial year as it moves to offer clients a more diversified portfolio and exposure to a wider mix of assets.