March 02, 2020
Sagicor Select Funds Limited (SELECTF), for the year ended December 31, 2019 reported net investment income of $1.04 billion.
Dividend income closed the year ended December 31, 2019 at $104.23 million, moreover, other net changes in fair value on financial assets at fair value totalled $931.83 million, while investment income amounted to $1.52 million. Net foreign currency gains on cash and cash equivalents amounted to $1.46 million.
The Company highlighted, “The fund benefitted from the stock market performance over the period. Revenue was largely derived from appreciation in prices of the securities held as well as dividends. On average, the main market stocks appreciated by 42% during 2019. The financial companies listed on the Jamaica Stock Exchange (JSE) pay dividends, specifically Scotia Group Jamaica Limited (SGJ) with a dividend yield of 8.55% for 2019, owing to the payment of special dividends.”
Total expenses for the year period closed at $65.11 million. Of this, Auditors’ remuneration equalled $1.80 million, while Professional, Legal, Administrative and Audit fees closed at $254,000 for the year ended December 31, 2019. Transaction costs, Loan interest expense and Irrecoverable General Consumption Tax amounted to$37.93 million, $5.38 million and $13.86 million for the year ended December 31, 2019. In addition, Trustee fees and Other expenses totalled $3.67 million and $2.19 million respectively.
Management noted that total expenses, “was largely for administrative expenses. Majority of the expenses were due to transaction cost associated with the acquisition of the stocks; legal & professional fees associated with the cost of the initial public offering.”
Consequently, net profit closed the year period at $973.92 million.
Earnings per share for the period under review amounted to $0.19. Earnings per share for the quarter ended December 31, 2019 was $0.012. The number of shares used in this calculation was 5,100,000,000 shares. SELECTF closed the trading period on March 02, 2020 at a price of $1.05.
Balance Sheet Highlights:
Total assets, as at December 31, 2019, amounted to $5.95 billion. Of this, Cash and Cash Equivalents booked $87.58 million, while Financial assets at fair value through profit or loss totalled $5.86 billion. SelectF mentioned, “These assets are largely financial holdings held by the company (98.5%) and cash & cash equivalents (1.5%). The assets held by the company were mainly financed by a capital injection of J$1.1 billion by the seed investor and approximately J$4B raised at the IPO in July 2019. Additionally, net surplus accounts for 14.8% of shareholders’. ”
SelectF’s total equity amounted to $5.94 billion as at December 31, 2019, resulting in a book value per share of $1.16.
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