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JMMB rolling out four unit trust products

Published:Thursday | April 16, 2015 | 12:22 PM
JMMB Group office at Haughton Terrace, New Kingston.

Chasing after new market share, JMMB Fund Managers Limited launched two new unit trust products on Monday - the JMMB Bond Fund and JMMB Real Value Fund - and will roll out another two in May.

The fund manager says it aims to double its portion of the market within two years, which would potentially grow its share to about 10 per cent.

Head of client fund services at JMMB-FM, Christopher Walker, said the company had $4.5 billion under management in its unit trust portfolio at the end of March, and while he did not disclose its equivalence in market share, industry data suggests it is less than five per cent.

At last disclosure, unit trust regulator, the Financial Services Commission, reported that the market was valued at $96 billion in funds under management at September 2014.

The market currently comprises 26 unit trust funds managed by five fund managers, namely Barita Unit Trust, Scotia Asset Management Jamaica Limited, Sagicor Investments Jamaica Limited, JMMB Fund Managers and NCB Capital Markets Limited.

Prior to Monday, JMMB-FM had three funds under management: Income & Growth, which is invested in fixed income and equities; Optimum Capital which is backed by real estate, fixed income investments and equities; and Giltedge, which is a fixed income fund. The new products will grow the portfolio to seven.

Circulars issued by JMMB introducing the new Bond Fund and Real Value Fund offer units for sale at the introductory price $10 per unit between April 13 and May 30, with a minimum purchase set at $5,000 or 500 units. Both are denominated in Jamaican dollars.

On May 1, JMMB-FM will roll out the JMMB Income Distribution Fund, which will largely consist of sovereign and corporate debt securities, the JMMB USD Income Distribution Fund, whose assets will mainly comprise US dollar-denominated sovereign and corporate debt securities and will be positioned as a conservative investment solution. Both will be positioned as a conservative investment solution.

Walker said the JMMB Bond Fund will invest primarily in Government of Jamaica instruments and blue chip corporate debt instruments.

"This portfolio is suitable for clients who desire capital appreciation as a key investment objective," he said.

The Real Value Fund is invested primarily in other

collective investment scheme products. Walker said that it is suitable for investors who want stable income flows and who are seeking foreign currency exposure but have local currency to invest.

He said JMMB-FM is projecting returns over the long term of six per cent for the bond fund and 7.4 per cent for the value fund.

"The fund is ideal for the moderate investor with an investment horizon of greater than one year," he said.

Unit trust purchases are not typically positioned as short term investments but Walker notes that investors who want to cash out can do so at any time.

However, encashments across the board for the JMMB Bond Fund have a daily limit of $5 million and $3.5 million for the JMMB Real Value Fund - caps that Walker said allow for prudent management and investment of the funds.

"These investment options are geared towards medium to long-term investment so that clients can maximise their return on investment," he said.