Sagicor Select plans conversion of two funds to unit trusts as funds underperform

 

 




Sagicor Select Funds Limited (SS) has applied to the Supreme Court in Jamaica to summon a meeting of shareholders to vote on the conversion of its Select funds to unit trusts.

SS filed an application with the Supreme Court of Jamaica on March 17, 2025, for conversion of both the Sagicor Financial Select Fund and the Sagicor Manufacturing and Distribution Select Fund under a court-approved scheme of arrangement.

The filing of this application follows the Board of SS Funds’ decision on May 8, 2024, to pursue the conversion of the Funds into Unit Trusts registered with the Financial Services Commission and governed by the Securities (Collective Investment Scheme) Regulations, 2013.

The proposed conversion seeks to resolve the issue of the SS Funds’ shares consistently trading at a significant discount to their net asset values (NAV) on the Jamaica Stock Exchange.

Simultaneously with the application to the Court, the Company will prepare an application to the Financial Services Commission to register the two Unit Trusts.

If the Court approves the application to convene a meeting of shareholders of each Fund, and the requisite majorities of shareholders in each Fund vote in favour of the resolution to convert the Funds to Unit Trusts, then a second Court hearing will be held seeking the sanction of the Court to approve the Scheme.

Once the Court grants the order approving the Scheme and that order is filed with Registrar of Companies the Scheme would become effective.

In August 2019 Sagicor Investments raised $4B to invest in a basket of equities from the financial sector. That offer opened on July 3rd and closed on July 16th was oversubscribed by approximately 60 per cent with over 20,000 shareholders.”

The funds were invested in securities that are listed on the JSE Junior and Main Markets and its investment objective is to track the Financial Index which is an index recently established by the JSE. The Sagicor Select Funds Limited will trade under the symbol SELECTF.”

Investors were invited to track the value of the Financial Index, the Net Asset Value (NAV) and the price of the Financial Select Fund on a daily basis.

Subsequently the other fund was created. SS desires to convert both as trading results have underperformed.

Select funds which are concentrated portfolios of high performing stocks have done well in other jurisdictions.

Caribbean Money Daily

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