Both listed classes of Sagicor Select Funds Limited didn’t trade in the Jamaican stock market during 2023 as there were mixed performances across the different market sectors.

Sagicor Select Funds was formed in 2019 to have specific classes of shares track the sector-based indices. Indices track the performance of a specific basket of securities which is translated through a main numerical figure. As the weighting of the securities in each indices changes, the specific class of shares tracking each index would rebalance or adjust their portfolio to reflect the new weightings.

However, the class B shares that track the financial index (SelectF) and the class C shares that track the manufacturing and distribution index (SelectMD) had no rebalancing in 2023 with both fund compositions effectively matching the respective indices.

SelectF experienced another year of fair value losses as its portfolio took another hit to the tune of $562.21 million with dividend income declining by 19 per cent to $63.39 million. After accounting for reduced expenses to the tune of $26.91 million, SelectF’s net loss was $523.71 million with a loss per share of $0.10.

The JSE Financial Index was down 18 per cent in 2023 to 70.65 points, effectively twice the decline of the JSE Index which was down 8.48 per cent. As a result, SelectF’s portfolio declined to $3.01 billion which is a steep decline relative to the $5.86-billion value reflected in 2019. Thus, its net asset value was $0.59 comparable to the market price of $0.39.

SelectMD had a different experience in 2023 as it had $80.68 million in fair value gains as its portfolio value improved during the year with dividend income also climbing 16 per cent to $124.87 million. After accounting for the 17 per cent drop in total expenses to $27.73 million, net profit grew eightfold from $20.30 million to $191.05 million. This resulted in earnings per share of $0.05.

The JSE Manufacturing Index grew six per cent to 102.94 points which better than other market indices which were largely down in 2023. SelectMD’s portfolio improved to $3.94 billion which is marginally above the $3.72 billion value in 2019. The net asset value of the listed fund was $1.07 compared to the closing price of $0.59. Both Financial and M&D Indices originally began at 100 points in 2019.

SelectF paid a $0.01 dividend in 2023 which brought its total payments since listing to $0.0492 or $250.92 million. SelectMD paid a $0.0319 dividend in 2023 with its total payments coming in at $0.0696 or $265.64 million.

SelectF’s three largest holdings were Sagicor Group Jamaica Limited, NCB Financial Group Limited (NCBFG) and Scotia Group Limited which made up 58.14 per cent of the portfolio. SelectF is set to benefit from another NCBFG dividend payment next Monday and from a payment by Scotia Group on April 17.

SelectMD’s three largest holdings were Wisynco Group Limited, GraceKennedy Limited and Carreras Limited which totalled 45.09 per cent. SelectMD is set to benefit from dividends by Carreras and GK on April 4 and April 5, respectively.