JMMB Investments (Trinidad and Tobago) Limited (JMMBTT) has launched five new mutual funds while Sagicor Asset Management Inc (SAMI) has launched the Sagicor Renewable Energy Fund (class A cell shares) through Sagicor Special Opportunity Funds SCC (Segregated Cellular Company).

The JMMBTT funds include the United States dollar (USD) Regional Sovereign Bond Fund, USD International Corporate Bond Fund, Global Equities Fund and USD plus Trinidad and Tobago dollar (TTD) Optimal Funds. These compliment the TTD and USD Income Funds offered by JMMBTT already.

The first three funds are being offered through the initial period of March 25 to April 22 with the Regional Sovereign and International Corporate Bond Funds costing US$25 ($3,875) per share while the Global Equities Fund and Optimal Funds costs US$10 and TT$10. The minimum units to subscribe to the Regional and International Bond Funds is eight units, 20 units for the Global Equities Fund, 10 units for the USD Optimal Fund and 50 units for the TTD Optimal Fund.

“These new mutual funds will give the added benefit of diversification through different assets, asset classes and geographic locations to clients. Overall, investing in mutual funds offers the following benefits: diversification, the opportunity to invest systematically and accessibility, in addition to access to the JMMB’s management expertise by just buying units in the funds. Since clients have differing goals, increasing the suite of offerings allows clients to have more access to solutions to assist them in achieving those goals. The JMMB USD Optimal Fund and the JMMB TTD Optimal Fund will be available within the next few weeks to clients in Trinidad and Tobago,” said JMMBTT Chief Executive Officer Tricia Kissoon in an e-mail shared with Caribbean Business Report.

The new funds being offered range from conservative to moderately aggressive while investing across money market instruments, sovereign and corporate debt securities plus stocks on approved stock exchanges. The Global Equities Fund would invest in blue chip established in the United States, Canada and United Kingdom markets.

The two-year annualised return on the TTD Income Fund is 1.782 per cent with a net asset value (NAV) of TT$95.59 while the USD Income Fund has returned 4.327 per cent with a NAV of US$11.11. These funds invest in securities issued or backed by Caribbean governments or high-quality obligations of listed Caribbean companies. JMMBTT is a wholly owned subsidiary of JMMB Group Limited.

Sagicor Financial Company had formed Sagicor Special Opportunity Funds SCC in 2020, but delayed the launch due to the novel coronavirus pandemic in the region. Apart from the Class A cell shares, the Class B cell shares is designated as the Sagicor Infrastructure Fund, Class C cell shares as the Sagicor Technology Fund, Class D cell shares as the Sagicor Health Care Fund and Class E cell shares as the Sagicor Diversified Fund. SAMI is the administrator and broker for the special opportunity funds with both entities being domiciled in Barbados. SAMI has 1,000 common shares known as management shares.

The Class A cell shares went on offer on February 14 and closed on March 15 at the initial offer price of BB$1.00 which had a minimum investment of BB$500. The Special Opportunity Funds are continuously on offer each week for subscription which is based on the NAV of that fund on the dealing day. The other funds will be launched later during the year.

The Sagicor Renewable Energy Fund is expected to have annual operating expenses of 1.925 per cent of the fund’s value. Thus, a BB$100 investment in year one would be worth BB$112.88 at the end of year four. The fund’s investment strategy is to invest 70 per cent of its assets in global securities of companies in the renewable energy sector. The strategic allocation is expected to be 60 to 80 per cent in equities and 20 to 40 per cent in bond and zero to 10 per cent in liquid assets such as cash. This investment policy is to be reflected across the Class B to D cell shares while the Class E cell shares will invest between 15 to 20 per cent of its assets into the other four Sagicor Opportunity Funds with a focus to also invest in the European, Asia-Pacific Rim and Indian sub-continent economies.

Investors are subject to a rolling penalty for early redemption before year three of three per cent in year one, two per cent in year two and none after the third year. The fund doesn’t intend to pay out distributions but to reinvest all income and capital gains. Investor can make additional BB$100 investments through a lump sum purchase, direct debit, securities exchange plan or dividend interest investment plan. None of the funds are expected to be listed since they are open ended. SAMI is a wholly owned subsidiary of Sagicor Financial Company Limited.