Jamaica National Group, one of few local companies which offers mutual fund products, indicates that it intends to add to its suite of products in this area.
The company told the Jamaica Observer on Monday, “Subject to board and regulatory approval, we expect to launch at least two new funds within the next few months. One is a money market fund denominated in pound sterling and the other will be an equity fund focused entirely on the international markets.”
The JN Group, through its subsidiary JN Fund Managers, currently offers a wide range of securities, namely money market securities, fixed income securities (Government of Jamaica), corporate debt obligations — both local and international), equities (both local and international stocks), real estate fund and private equity.
The company indicates that performance across funds have varied in the last two years. The global us fixed income fund posted the best return for 2020 of 6.55 per cent in US$ terms, while the local money market fund posted the best return of 5.02 per cent for 2021.
In 2021, the company’s global equity recovered from a 16.73 per cent decline in 2020 to return 4.3 per cent. The global diversified income fund also recovered from a 5.21 per cent decline in 2020 to return 2.22 per cent.
Meanwhile, JN Fund Manager’s global fixed income returned 4.83 per cent in 2021 compared to 5.62 per cent in 2020. The global money market fund returned 4.83 per cent in 2021 compared to 3.41 per cent in 2020.
The global US dollar fixed income fund returned 2.98 per cent compared to 6.55 per cent in 2020. Meanwhile, the local money market fund returned 5.02 per cent in 2021 versus 3.52 per cent in 2020.
As at December 2021, the total funds under management within mutual funds stood at $7billion compared to $6.1billion in December 2020.
JN Fund Managers launched mutual funds during the last decade with five funds — four denominated in Jamaican dollars and one in US dollars.
The other companies which offer mutual fund products are Scotiabank, which focuses on US and Canadian dollar products, and Sagicor and NCB Capital Markets which both offer CI mutual funds on behalf of CI investments, a global assets manager based in Canada.
Mutual funds pool the funds of many investors and invest in a mixture of stocks, bonds, money market instruments, and more. They can target a sector, the economy, bonds, stocks, or a combination and also invest locally, regionally or internationally.
Investors in mutual funds buy units of the fund and share in its gains and its expenses.