November 15, 2022

Sagicor Select Fund Financial Limited (SELECTF)

For the nine months ended September 30, 2022: –

Sagicor Select Fund Financial (SELECTF) for the nine months ended September 30, 2022 reported dividend income of $64.16 million (2021: $61.91 million). Interest income closed the nine months period at $811,000 and relative to $661,000 last year.

Net changes in fair value on financial assets at fair value through profit or loss for the nine months amounted to a loss of  $387.72 million compared to a loss of $155.69 million reported in 2021.

As a result of this the company reported a net investment loss of $322.74 million relative to a Net investment loss of $93.12 million booked last year.

Net foreign currency loss and other income amounted to $12,000 relative to a gain of $18,000 in 2021.

Total expenses for the nine months period closed at $24.83 million (2021: $33.9 million), while for the quarter, expenses amounted to $5.77 million (2021: $12.55 million).

The company reported no tax charge for the period under review.

Consequently, net loss closed the nine months period at $347.59 million relative to a net loss of $127 million last year. Whereas the quarter net loss amounted to $149.51 million versus the net loss of $145.25 million booked last year.

Loss per share for the period under review amounted to $0.068 relative to a LPS of $0.025 in 2021, while for the quarter, SelectF booked LPS of $0.029 versus an LPS of $0.028 in 2021. Twelve-month trailing LPS was $0.072. The number of shares used in this calculation was 5,100,000,000 shares. As at November 15, 2022 the stock traded at $0.45.

Management stated, “The Financial Select Fund recorded a net loss of J$347.6 million for the nine months ended September 2022. This represents a fall-off relative to a net loss of J$127.0 million in corresponding period in 2021. This deterioration was principally resulting from unrealized depreciation of J$387.7 million in the value of investments as most of securities in the Fund recorded a decrease in prices. Furthermore, this negative performance is expected to transcend with the economic uncertainty globally and rising interest rates.”

Balance Sheet Highlights:

Total assets, as at September 30, 2021, amounted to $3.80 billion (2021: $4.22 billion). Of this, Financial assets at fair value through profit or loss totalled $3.71 billion (2021: $4.13 billion).

Total equity as at September 30, 2021 amounted to $3.77 billion (2021: $4.20 billion), resulting in a net asset value per share of $0.74 (2021: $0.824).

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