Hurting from soft stock market prices
Losses continue to mount at Sagicor Select Financial Fund, which returned a dismal first-quarter performance in March 2023.
The fund, which invests mainly in financial stocks, recorded a net loss of J$237.9 million or 80% from the loss of J$131.86 million recorded for the same period last year. Total Investment loss increased by 91% to J$231.71 million coming from a loss of J$121.22 million in March 2022.
Loss per share (LPS) for the quarter amounted to J$0.05 relative to an LPS of J$0.03 in March 2022. The trailing twelve months LPS totalled J$0.12.
Hurting from poor stock prices
This deterioration was principally resulting from unrealized depreciation of J$246.5 million in the value of investments, as most of the securities in the Fund recorded a decrease in prices during the quarter. This negative performance is due to economic uncertainty globally and rising interest rates.
Dividend Income was J$14.7 million, down by 0.61% when compared to March 2022. On the positive side, total expenses were cut by 42% to J$6.21 million coming from J$10.64 million in 2022.
This downward movement was largely due to legal and professional fees decreasing fourfold. Management fees declined by approximately 26% reflecting a fall in the net asset value.
At the end of March 2023, the total assets were valued at J$3,374 million. This comprised Financial Assets held by the fund of J$3.32 billion (98.6%) down from the J$4.01 billion booked in March 2022.
Cash and cash equivalent declined to $ 33.68 million compared to J$42.8 million at the end of March 2022. The assets were financed by equity of $3.34 billion and liabilities of J$24.6 million.