Sagicor Select Funds was incorporated on the 11th of January 2019 as a public company. The main purpose of Sagicor Select Funds is to trade in securities listed on recognized exchanges. The company is a wholly owned subsidiary of Sagicor Investment Jamaica. As at the end of February 2019, the company consists of one (1) fund – The Financial Select Fund – a close ended non-diversified investment fund. The Sagicor Select Funds seeks to closely mimic the Financial Index of the Jamaica Stock Exchange (JSE). Sagicor Select Fund seeks to raise up to J$4B towards the purchase of additional shares for the fund.
One of the most productive and active sectors of the Jamaican economy has been the financial sector. More importantly, this sector consists of some the Jamaica Stock Exchange (JSE) top performing stocks. Following the financial recession, the Jamaican
financial sector has gone on to perform exceedingly well while generating income for shareholders. The sector continues to grow year over year (YoY) and is expected to continue expanding as the overall economy continues to grow. The Central Bank continues to pursue a low interest rate policy while expanding the country’s money supplies. Consequently, creating an environment for greater appetite towards credit by
investors.
The Sagicor Select Fund presents the opportunity for investors to partake of an Exchange Traded Fund (ETF) centered around the Jamaican financial sector. Quite often investors are deterred by the high cost per share to purchase shares in some of these large companies; in many cases investors who purchase shares in these are unable to purchase large volumes. Purchasing shares in Sagicor Select Funds will enable investors to indirectly purchase and derive the benefits of investing in all the shares that comprise the financial index. Ultimately, diversifying against risk inherent to a specific company.
I note and highlight the holding of certain underperforming stocks within the fund (see Appendix) such as SSL Venture Capital (SSLVC) and the Portland JSX which in the short to medium term could adversely impact the performance of the fund. Nonetheless, I positively view this IPO as one that allows investors to not only
indirectly acquire shares in some of the top performing companies within the financial sector but also the possibility to create further wealth without the high cost that has deterred investors. In a month, following its incorporation, the fund has managed to generate J$18.7M in the net income (see Appendix). Accordingly, would encourage investors to participate in this IPO.
Sagicor Investments Jamaica Ltd. Capital Markets will open an IPO on July 3, 2019. The offer is for Sagicor Select Funds Limited. The Prospectus and the Application Form are attached and can be as accessed via: https://www.jamstockex.com/sagicor-select-funds-limited-main-market-prospectus/ as well as w.sagicorjamaica.com
Summary of the Key Information
TIMETABLE:
- Opening Date: July 3, 2019
- Closing Date: July 17, 2019; subject to the right of the Company to close the Application List at any time , without notice.
KEY TERMS OF ISSUE:
- Offer price: J$1.00 per share
- Reserve Pool: $0.98 ( the reserve pool is for SIGMA clients as at May 31, 2019 and Sagicor Employee)
The Sagicor Select Fund is a good opportunity to get exposure to security that one considers as being too rich for their blood. This includes all the financial companies that are traded on the Main and Junior Exchange.
Questions
I may be bias because good amount of family members work at Sagicor:
- Are you going to invest?
- Why?
Financial World 