MAYBERRY Investments has launched a new investment product aimed at ultra-conservative investors and businesses looking to earn a return on money they may need to access in the short term. Called Mayberry GO, the product gives clients access to Bank of Jamaica (BOJ) certificates of deposit (CDs).

“We believe that this portfolio speaks directly to one of our clients’ most significant mandates, which is how to earn money on short-term money and how not to risk it,” said Damian Whylie, general manager of asset management at Mayberry Investments.

The product was unveiled at Mayberry Investments’ Beyond the Portfolio breakfast mingle on Monday morning. A key feature of the Mayberry GO is that clients can access their funds within 48 hours of making a request, and the product has no exit fees or early encashment fees.

“We designed this portfolio specifically for this type of investor and companies who need to manage short-term liquidity. You could go do a bond, but liquidating that bond takes an extremely long period of time. With a portfolio like this, that liquidation time is 48 hours,” he said.

Damian Whylie, general manager of asset management at Mayberry Investments, explaining to guests at the company’s Beyond the Portfolio breakfast mingle on Monday. (Photo: Garfield Robinson)

A BOJ CD is a short-term investment issued by the Bank of Jamaica that allows investors to earn interest on their money for a specified period. The securities generally have terms ranging from 30 to 180 days. A Mayberry GO has a minimum investment of $350,000, with returns linked to the BOJ benchmark rate, which is currently 5.5 per cent per annum. Interest earned is subject to a 25 per cent withholding tax, while Mayberry charges a 0.5 per cent management fee based on the average daily balance.

For example, a $350,000 investment for 30 days at the current 5.5 per cent rate would generate approximately $1,604 in gross interest. After the 25 per cent withholding tax, approximately $1,203 would remain in interest earned.

Against the backdrop of elevated inflation, Whylie said investors are also looking for assets that can generate competitive returns. Mayberry offers longer term securities through its other managed portfolios, where investors may be able to earn better rates. However, he said those investments come with liquidity constraints that may not be suitable for short-term investors or businesses with near-term financial obligations.

Mayberry said the objective is to make access to BOJ CDs easier for everyday investors while reducing some of the uncertainty and administrative requirements associated with the previous process for purchasing the securities. Previously, investors interested in BOJ CDs had to participate in an auction through their brokers, submitting bids based on the yield they wanted to receive.

Mayberry Investments has launched Mayberry GO, a new investment product giving clients access to Bank of Jamaica certificates of deposit.

“You had to participate in an auction which required the client to bid a price to get the specific yield that they want, so if they are too aggressive they may not be successful, and if they are too conservative they might end up getting a lower return,” Melicia Jones, vice-president of relationship management at Mayberry Investments, said in an interview with the Jamaica Observer.

She said the Mayberry GO is intended to remove that element of guesswork for clients, particularly for investors unfamiliar with the bidding process. Under the previous arrangement, clients also had to communicate via e-mail and repeat the process each time they wanted to enter a BOJ CD. Despite being structured as a portfolio, the Mayberry GO is not a fund. Instead, the portfolio is made up entirely of BOJ CDs, with clients owning the actual BOJ securities rather than purchasing shares in a larger pooled investment fund.

With Mayberry GO, clients sign up for the service, and Mayberry handles the investment process on their behalf on an ongoing basis. The onboarding process can be completed digitally, while clients can also request their funds digitally.