Sagicor Funds Reports: Strong Returns For Year-To-Date 2023- Part II -Mutual Funds

Mutual Funds

By Nicholas Neckles

Portfolio Manager, Sagicor Asset Management Inc

Mutual Funds are a suitable investment vehicle for both new and experienced investors, especially those focused on accumulating wealth. There are three key benefits that a Mutual Fund can provide: trained professionals who monitor investments on your behalf; a cost-effective way to invest; and diversification to protect your investment.

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Given Sagicor’s mutual funds are significantly exposed to international developed markets, investors were able to participate in the bull market rally so far in 2023 - The Sagicor Select Growth Fund, Global Balanced and Preferred Income Funds have all advanced for the year-to-date period.

Although an economic downturn in 2023 is being widely forecasted, it is also expected that there will be a rebound in equity and bond market valuations in the second half of the year as global Central Banks begin to slow the pace of interest rate hikes to avoid a deep recession.

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The Sagicor Global Balanced Fund

This is the first Barbados-based global fund, offering investors the opportunity to invest in international, regional, and local securities.

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The Fund’s best in class performance has been buoyed by improving macroeconomic factors such as moderating inflation and interest rates while the risk of financial system vulnerabilities has abated.

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Fund diversification helped to mitigate much of the downside risks and allowed a 4.8% return year to date and a 6.6% one-year return.

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The Sagicor Select Growth Fund ?

For investors seeking long-term growth, but who want to manage risk through an internationally diversified portfolio, the SSGF is a viable option. The Fund’s significant exposure to the equities asset class contributed to its best in class year to date performance of 5.1% and a return over one year of 7.2%.

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The Sagicor Preferred Income Fund

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The SPIF is suitable for investors with a low level of risk tolerance.?It seeks to achieve a high level of current income and preservation of capital through investments in a diversified portfolio of bonds, debt securities, asset-backed securities, high-income funds, and selected equities.

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With there being a positive outlook for bonds in 2023, this Fund’s significant allocation to this asset class has achieved positive return of 1.6% year to date and 3.3% one-year return.

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So, what’s the bottom line? Discipline will be critical for investors throughout 2023. Invest strategically and, as economies recover over the next business cycle, so will the value of your shares accumulated over a long-term investment time horizon.

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For more information on how to kick off your investment journey or enhance your returns in 2023, talk to a Portfolio Manager today. Visit sagicor.com to learn more about our products and services and how we can help you invest wisely today and beyond.