Tuesday, May 24, 2011

PanCaribbean Expands Unit Trust

PanCaribbean has added two new products the Sigma Venture and Sigma Corporate to its unitized investment pool with the aim of broadening the investment opportunities for its clients. The two new products, brings PanCaribbean’s unit trust pool to five that already includes Sigma Optima, a regional equity portfolio, Sigma Solution, a JMD denominated fixed income portfolio, and Sigma Liberty, the USD indexed fixed income portfolio.
 
Among the newest, Sigma Venture is the equity portfolio, invested in private and public equity securities and venture capital holdings. Investments in the Sigma Venture are made in start-ups, as well as, emerging and growth oriented companies domiciled in the Caribbean. Sigma Corporate is a fixed income portfolio, also invested in corporate debt securities of companies that are located locally, regionally and internationally.
 
Both the Sigma Venture and the Sigma Corporate are decidedly more aggressively focused on growth. The funds aim to provide investors who have a longer-term investment horizon and limited liquidity needs within the first year of investing, with above average returns on the emerging asset classes.
 
Kevin Donaldson, Manager, Pan Caribbean Financial Services, Equities Unit, noted the advantages that the new products offer to the more aggressive and growth focused investors. “These products are not ordinarily available to investors in our marketplace. The Venture fund is the first of its kind as well as the corporate bond portfolio. They both provide an investor with the exposure to a new and emerging asset class, geographical diversification, potentially higher yields and higher growth,” he said.
 
Investors will also be pleased with the tax advantages that accrue with investing in the long-term securities as they pay no transfer or capital gains tax on the returns or sale of units in Sigma Venture.
 
The initial minimum investment in both Sigma Venture and Sigma Corporate are 50,000 units, with subsequent minimum amounts of 5000 units per portfolio.  The initial offer price is $1.00 per unit. The Sigma Venture portfolio includes a preliminary charge of 4 percent, provided the investment is held at the minimum investment period of 1 year.  The Sigma Corporate portfolio also includes a preliminary charge of 1 percent, however, units will not attract this fee if held for the minimum 1 year holding period.
 
Donaldson noted that the funds would be managed to provide investors with the highest possible returns on the carefully selected portfolio of investments. He said, “At PanCaribbean we have the first mover advantage on these products and the experienced management to make it work. The overall investment market is changing and there is demand for investment options like Sigma Venture and Sigma Corporate,” Donaldson said.
 
MF&G Trust and Finance Limited have been appointed as trustees and will ensure that the portfolio is administered according to the investment policy.

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