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PROVEN Fund Managers enters unit trust market

Published:Thursday | October 5, 2017 | 3:45 PMNeville Graham

The crowded unit trust market just got more competitive with the entry of Proven select funds, a collection of four portfolios - Jamaica and US dollar money market, US dollar fixed income, and Jamaica dollar equity.

Proven made the announcement on Thursday via social media and a press release. Both money market funds offer capital protection and liquidity as the investment objective. The fixed income fund offers capital appreciation and interest income, while the equity fund offers capital appreciation and dividend income.

The company says it will be offering Proven select funds as the solution for more diversification and less volatility as a key response to clients.  

President and chief executive officer of Proven Fund Managers Limited and Proven Wealth Limited, Chorvelle Johnson says the company was responding to market needs.

“The Proven select fund will give our clients the options to select the best investment portfolio based on their short, medium and long-term goals,” Johnson said in an interview with Gleaner Business.

She explained that there is a there was a three-pronged approach to delivering on market requirements - that of offering more investment options, maintaining a diversified business portfolio and catering to unique objectives. Johnson said Proven was not concerned that it was entering a highly competitive and crowded unit trust market.

“We don’t regard any of our investment areas as crowded. We always believe that there is room for improvement on what currently exists and more than ever we listen to our clients and what their needs are,” she said.

Proven says the portfolios are designed based on risk profiles and "will deliver attractive returns using the expertise and experience of the Proven investment managers by capitalizing on a range of securities," the release said.

The select funds will be managed by Proven Fund Managers Limited and sold by Proven Wealth Limited.  Both companies are subsidiaries of Proven Investments Limited, whose total assets as at March 31, 2017 was US$632.4 million, an 81.5 per cent year on year increase.  

Johnson says she expects the portfolios to do well going forward. She is projecting a range of returns that will be in line with Proven’s track record of performance.

“We’re looking for a range of, say, high three per cent and up to 15 per cent depending on which one of the products are taken up,” Johnson said.

The minimum investment is J$200,000 for Jamaica dollar-denominated instruments and US$2,000 for US dollar-denominated instruments. There is a minimum holding period of 30 days.