Sterling records strong growth
Sterling Investments Limited (SIL) posted a 27.5 per cent year-on-year increase in the value of investment securities to $2.2 billion at the end of September. The company also grew its profit by 11 per cent on the back of an impressive rise in its interest income.
Charles Ross, director, Sterling Investments, stated, “Throughout 2020, Sterling Investments Limited (SIL) was able to generate significant increases in its income, US$ dividends and capital gains. During the first nine months of 2021, SIL took advantage of spikes in volatility, took profits on strategic positions, and positioned itself for a shift in monetary policy by the US Federal Reserve. The company continues to earn steady interest income and maintains attractive capital gains on its investment portfolio.”
Giving his analytical overview on the continued unprecedented trading conditions, Ross added, “As the battle against COVID-19 continues, the company continues to exercise caution and diligence in its activities. SIL performs enhanced due diligence on the credits within the portfolio and hunts for undervalued securities to enhance shareholder value.”
In terms of the income statement, revenue totalled $184.9 million for the first nine months of 2021, or 8.6 per cent higher than revenue of $170.3 million for the same period in 2020. This was driven primarily by increases in interest income and gains on sale of debt investment securities, the latter a result of increased profit taking in the portfolio. Total foreign exchange gains declined year-on-year, from $80.3 million for the nine month period ended September 30, 2020 to $54.6 million for the same nine month period ended September 30, 2021.
“SIL’s investment portfolio is exposed to higher growth economies and 100 per cent of the company’s revenue is denominated in US dollars,” continued Ross, concluding, “By focusing on the global capital markets, SIL is able to achieve higher returns at lower risk levels than its locally focused competitors.”
SIL generates income through interest income generated by the securities in the portfolio, as well as through capital gains that are realised as a result of increases in the price of the securities.
