Sabrina Gordon, Business Reporter
Mayberry Investment Limited has created a J$1-billion fund which it says will be used to underwrite or invest in new issues on the junior market of the Jamaica Stock Exchange.
Gary Peart, chief executive officer of Mayberry Investment, says the fund is being financed out of the company's own resources.
The company has a cash hoard of J$1.7 billion and an equity base of J$3.67 billion
"It's basically equity set aside, and we will look at any opportunity that can result in listing on the junior market or us underwriting it directly," said Peart on Tuesday.
He said companies that qualify to launch an IPO on the junior market can also qualify for assistance under the fund.
"We think that no time is as accommodating as the environment we are now in, and this investment fund is a way to help drive growth in the country and get to the next step," said Peart.
"We have the equity, the experience and welcome anyone with a good idea or project that we can do business with," he said.
Jamaica has just finalised its second public debt restructuring in three years that has shaved returns on fixed income securities. Peart said now is the time to invest in businesses for real return on capital, given the current interest rate environment.
"With the National Debt Exchange now past, there are opportunities for growth; and the best way to build and grow is by using equity," said Peart.
Mayberry, a full service financial advisory and brokerage firm, specialises in stocks and money market trading, asset and portfolio management, cambio service, as well as pension management.
At yearend December 2012, the company posted net profit of J$439.35 million, representing a 55.72 per cent growth over 2011.
The company said it is expecting a harsh blow to earnings this year because of the NDX, which cut interest rates on GOJ bonds.
Peart in a release said Mayberry could take a J$337-million hit from the debt swap.
Going forward, Peart said the company will continue to diversify and improve its suite of products and services.
"Our funds under management have recorded a 12.6 per cent growth in 2012, and we look forward to sustaining our steady improvement in the market. Our clients can rest assured that regardless of the economic pressure that currently exists, we will continue to operate in their best interests and our strategy will still seek to maximise their returns whilst being exposed to as low risk as possible," he said.
Mayberry has brokered the majority of junior market initial public offerings since the inception of the JSE Junior Exchange in 2009.
The junior market currently has 16 listings whose combined market value top J$20 billion.