Sagicor’s bid to streamline its Sigma Global Funds met investor resistance, with two key portfolios falling short of the 75 per cent threshold despite majority backing at unitholder meetings on the proposed consolidation of five portfolios.

Sagicor Investments Jamaica Limited (SIJL), the fund manager, proposed to unitholders a plan to reduce the number of unit trust portfolios from 18 funds to 13 funds. This move was meant to improve liquidity, reduce concentration risks, and optimise the ability for each fund to achieve its relevant objective.

At the February 24 extraordinary general meeting (EGM), the first three resolutions were approved on poll by unitholders whose voting interest exceeded 95 per cent for three funds, well above the 75 per cent supermajority threshold. This means that these three portfolios will be terminated with the assets transferred to the new respective portfolios.

As a result, the assets of Sigma Global Equity JMD will be transferred to Sigma Global Equity USD, the assets of Sigma Real Growth JMD will be transferred to Sigma Global Corporate JMD, and the assets of Sigma Money Market JMD will be transferred to Sigma Income JMD. The meetings for Sigma Principal Protector JMD and Sigma Principal Protector USD were adjourned due to the lack of a quorum.

“There are some funds that have similar strategies and objectives that if there is a merger of those funds, there could be some operational efficiencies that would be realised which would ultimately support improved fund performance,” said Jodian Aris, vice-president of Research and Strategy at SIJL, in her presentation to unitholders.

The proposed merger is expected to improve operational efficiency and allow for better allocation of resources. Also, some unitholders will no longer face an early penalty charge for an early redemption before the minimum holding period.

Clients from the Sigma Global Equity JMD, Sigma Real Growth JMD and Sigma Money Market will now be directed to an online portal (sigmafunds.sagicorjamaica.com) to accept the options outlined. Aris noted that while the assets will be transferred, the units held by affected unitholders would not be automatically transferred upon the termination of the existing funds. Unitholders will decide how to allocate their units at that stage, but there will be an automatic conversion where SIJL cannot contact a client who has not made their decision known.

The unit holders in the approved portfolios to be converted will receive a notice at least 30 days prior to the termination and conversion of the relevant portfolios. This notice would be placed in a daily newspaper and put on the fund manager’s website. The FSC would also receive 30 days prior notice as well, with an updated Sigma offering circular being published to reflect the reduced portfolios.

Aris noted that this exercise is aimed at ensuring that unitholders remain whole from the conversion which means that there is no penalty charge applied for this merger. Also, there will be no additional tax obligations from the merger of the three aforementioned funds.

However, when the adjourned meeting for the Sigma Principal Protector JMD and USD funds was reconvened on March 26, the results did not turn out as expected. Both funds failed to meet the supermajority threshold despite receiving more than 60 per cent support from unitholders. As a result, neither conversion will move forward for these funds. The Sigma Principal Protector JMD would have been converted to Sigma Income JMD if the resolution was approved while the Sigma Principal Protector USD would have been converted to Sigma Global Income USD.

“I would expect from our experience as trustees that the resolutions not having been passed, that there will be further communication with the unitholders on what will happen by virtue of these resolutions,” noted JCSD manager Jevaughn Leon.

Sagicor Investments managed $157.30 billion in unit trust assets at the end of 2025 with Sagicor Group Jamaica Limited’s subsidiaries earning $2.90 billion in income related to these funds.

The move by unitholders to retain their Sigma Principal Protector portfolios means that the existing Sigma Funds portfolio will be reduced from 18 funds to 15 funds. However, the number of funds are set to expand shortly as the conversion for Sagicor Select Funds Limited’s financial (SELECTF) and manufacturing and distribution (SELECTMD) shares is set to be complete shortly.

Shareholders for both listed stocks voted last August in favour of converting the listed shares into unit trust funds. Sagicor Select Funds had a court hearing on January 21 as part of the process to have the scheme of arrangement sanctioned by the Supreme Court. The FSC will now approve an effective date which would pave the way for these shares to be converted to units.

These two funds had $7.71 billion in assets at the end of 2025 with Sagicor Group’s subsidiaries receiving $23.24 million in income during the year.