As it continued to take advantage of market volatilities and navigate global challenges, Sterling Investments Limited (SIL) during its last financial year managed to deliver marginal growth in net interest income which amount to $148 million – 2 per cent above its record 2021 out-turn.

Touting its 2022 performance as strong despite what it described as being “a difficult year”, chairman of SIL Derek Jones said the company continues to lean on its investment strategy which was designed to help it win in times of crisis and change.

“SIL demonstrated resilience amidst broad declines in the global stock and bond markets and management took advantage of the market declines by selectively purchasing undervalued assets and reinvesting liquidity in higher yielding securities,” he said in his report to shareholders.

The chairman said that in light of the higher interest rates, the company was able to bag higher levels of income for shareholders, ultimately remaining profitable with positive cash flow despite the decline in market prices and the appreciation of the Jamaican dollar. During 2022 the company experienced total unrealised foreign exchange losses of $30.3 million due to significant appreciation of the local currency.

Despite the losses, the company, however, said it maintains the long-term outlook that a long US dollar position continues to be the safest and most rewarding strategy for shareholders, even as it anticipates a likelihood for these losses to persist throughout the medium term.

Foreign exchange losses last year resulted in a decline in total profit causing it to fall drastically, moving from $159.8 million in 2021 to $42.7 million in 2022. Total assets, which fell to $1.7 billion in the past year, the company also expects to recover this year as it anticipates the decline in asset values to be reversed.

Pulling through the difficulties of last year, the company’s directors expressed gratitude for having had the ability to maintain profitability and cash flow during the market trough of 2022 and also allowing shareholders to enjoyed US$ dividends and its manager, Sterling Asset Management Limited, to make a few opportunistic asset purchases.

Total dividend payouts climbed to $74.2 million for the financial year at a 6.4 per cent yield.

“SIL continues to focus on delivering growth and value for stockholders. The company plans to continue to take advantage of the current volatility in the global market. Management anticipates future opportunities for the company to include: higher yielding financial assets due to rising interest rates, increased volatility in the financial markets and increased liquidity coming from calls or maturities within the portfolio,” the directors further said in an outlook.