Sterling Investments rides market volatility








Sterling Investments Limited (SIL) says that for the year ended December 2024, it continues to increase US dollar income in spite of market volatility. Total revenue increased 9.8 per cent from J$133.9 million in 2023 to J$147.0 million in 2024 due to net gains on the sale of debt investment securities held at FVOCI which moved from a loss of (J$42.6) million in 2023 to gains of J$7.8 million in 2023.



Sterling Investments Limited is an investment holding company that invests primarily in US dollar fixed income investments across the globe. The company was formed in 2012 when the JMD/USD exchange rate was J$92 / US$1 and prior to the National Debt Exchange.

SIL targets pension funds and long-term investors.

Interest income declined by 12.2 per cent as the company refrained from buying new assets amidst the tight credit spreads and elevated interest rate regime that prevailed during the fiscal year.

Interest expense declined from J$30.6 million in 2023 to J$26.7 million in 2024 – the direct result of lower U.S interest rates which reduced the cost of margin funding.

Total expenses increased from J$26.7 million in 2023 to J$84.9 million in 2024. This was due to the year-on-year change in unrealized revaluation losses and expected credit losses on the portfolio which moved from a gain J$34 million in 2023 to a loss of J$(5.9) million in 2024.

Management says that the 2023 figure was distorted by the sale of an asset which triggered the reversal of unrealized losses.

Net profit totaled J$61.9 million in 2023 compared to J$102.9 million in 2024, primarily a result of the higher unrealized losses on financial instruments year on year. Total comprehensive income totaled J$148.4 million for 2024 compared to J$149.2 million in 2023.

SIL recorded total assets as at December 31, 2024, of J$1.8 billion, roughly the same as at the end of 2023. Total equity increased from J$1.4 billion to J$1.5 billion thanks to an improvement in the market prices of the assets in the portfolio.

In their outlook, managers stated, “ As market prices continue to recover, we expect the fair value reserve to improve.”

Margin loans payable declined from J$430.2 million in 2023 to J$321 million in 2024, as the company paid down higher cost of funding with cash on hand.




Picture: Charles Ross, Sterling Investments

Caribbean Money Daily

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