SELECTF reports first quarter net loss of $ 1.48 billion

May 19, 2020

Sagicor Select Funds Limited (SELECTF), for the Three months ended March 31, 2020 reported net investment loss of $1.46 billion relative to an income of $18.23 million booked March 31, 2019. Management noted, “Total Income of negative $1,459 million was largely attributable to the unrealized loss in the value of the investments. The fund holds securities listed on the JSE, as such the stocks held in the fund recorded declines of $1,482 million. This was reflective of overall market conditions that prevailed during the quarter. Notwithstanding, the fund benefitted from cash income from dividends and interest of J$22 million and J$0.4 million, respectively.”

Fees and other income closed the three months period at $32,000 (2019: nil).

As such, total loss for the period under review equated $1.46 billion, as for 2019 first quarter, total revenue amounted to $18.23 million.

Total expenses for the three months period closed at $15.34 million, while for the same quarter in 2019, total expenses totalled $1.40 million. Of this, administration expenses equalled $15.34 million, (2019: 1.40 million) for the three months ended March 2020.

Consequently, net loss closed the three months period at $1.48 billion, compared to a net profit of $16.83 million reported for the first quarter ended March 31, 2019. The Company highlighted, “This outturn was attributable primarily to negative income earned and expenses for the period.”

Loss per share for the period under review amounted to $0.29, while for 2019 first quarter, earnings per share totalled $0.02. the trailing twelve months loss per share amounted to $0.11 The number of shares used in this calculation was 5,100,000,000 shares. SELECTF price was Last traded at a price of $0.74 on May 18, 2020.

Balance Sheet Highlights:

Total assets, as at March 2020, amounted to $4.47 billion (2019: $1.12 billion). Of this, Cash and Cash Equivalents closed at $93.20 million, while Financial assets at fair value through profit or loss totalled $4.38 billion. SELECTF mentioned, “During the quarter, one new financial company Caribbean Assurance Brokers was listed on the market and shares in this company were purchased.”

SelectF, as at March 31, 2020, booked shareholders’ equity of $4.46 billion versus $1.12billion booked 2019. Book value per share for the three months amounted to $0.88 (2019: $0.219).

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