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JAM | Jun 1, 2023

Losses rise at Sagicor Select Financial Fund

/ Our Today

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 Hurting from soft stock market prices 

Durrant Pate/Contributor

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 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. 

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.

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