SAGICOR Select Funds Limited (SSFL) aims to complete the conversion of its two listed funds into unit trusts by the end of November, more than a year after shareholders approved the plan.

The company, which trades securities listed on recognised exchanges, received confirmation from the Financial Services Commission (FSC) on October 27 of the registration of two unit trusts, advancing the process of converting the listed Financial Fund (SELECTF) and the Manufacturing & Distribution Fund (SELECTMD).

The conversion is being undertaken pursuant to a scheme of arrangement approved by shareholders in August 2025 and sanctioned by the Supreme Court in January 2026. Trading in both SELECTF and SELECTMD will be suspended on the Jamaica Stock Exchange (JSE) on November 12.

Sagicor Select said a formal court order will be filed at the Companies Office of Jamaica (COJ), resulting in the scheme of arrangement taking effect. Both SELECTF and SELECTMD’s redeemable participating voting shares would be delisted from the JSE after these steps.

“Once these steps are completed, SSFL will be dissolved and the technical and operational changes will be executed to create your individual unit trust accounts. This means that, upon the Schemes taking effect, your shares in Sagicor Select Funds Limited will be replaced by units in the corresponding unit trust,” stated the SSFL disclosure.

Both SELECTF and SELECTMD were listed in 2019 at $1 per share and together have more than 25,000 shareholders. However, shares in both funds have generally traded at a discount to their respective net asset values (NAVs), meaning investors were buying and selling shares at prices below the value of the underlying assets attributable to each share.

When shareholders approved the scheme in August 2025, SELECTMD’s share price was $0.92 compared to a NAV of $1.24, a 35 per cent discount. SELECTF’s share price was $0.43 compared to a NAV of $0.548, a 27 per cent discount.

With the conversion to unit trusts, investors will be able to redeem their units at NAV rather than sell their holdings at prevailing market prices. However, SSFL has made no subsequent disclosure on whether fund manager Sagicor Investments Jamaica Limited (SIJL) intends to list either unit trust on the JSE following the conversion. Any such listing would be subject to different conditions, as outlined in an explanatory document published in July 2025.

“Our legal, technical, and operations teams have commenced the post approval activities of the conversion process, which is targeted for completion before the end of November 2026,” SSFL added.

Both funds have traded upwards since the October 30 update from SSFL, but a discount remains between the market price and the NAV. SELECTF closed Monday at $0.53 compared to its NAV of $0.675, while SELECTMD closed at $1.17 compared to the NAV of $1.471.

Following the suspension notice on Tuesday, SELECTF traded at an intraday high of $0.58, while SELECTMD had an intraday high of $1.30. It means that both funds continue to trade below the last published NAV figures.

Both funds are expected to publish their quarterly reports by November 14. As at June 30, SELECTF had an asset base of $3.07 billion and a NAV of $0.60. SELECTF is expected to receive $943.42 million in cash this week related to the Scotia Group Jamaica Limited (SGJ) scheme of arrangement which saw minority shareholders being paid $75 per share.

SELECTMD had $5.27 billion in assets and a NAV of $1.37 on June 30. Its five largest positions have all gone up since June 30. These include Carreras Limited, Caribbean Cement Company Limited, Wisynco Group Limited, GraceKennedy Limited, and Seprod Limited.

The conversion will expand Sagicor Investments Jamaica Limited’s unit trust portfolio from 15 to 17 funds. This follows a rationalisation exercise in July 2026, during which three portfolios were merged after unitholders approved the restructuring in February 2026.

At the end of 2025, Sagicor Investments managed 18 unit trust portfolios with a combined asset base of $157.30 billion. These funds generated $2.90 billion in revenue for subsidiaries of Sagicor Group Jamaica Limited.