Leading mutual fund manager Fortress Fund Managers has once again posted strong results for its third quarter ending September 30, 2017 as global equities continued to rally and Caribbean markets enjoyed positive performances.
This was revealed by Fortress to business media attending its first “Lunch and Learn” session yesterday in its offices at Carlisle House, Hincks Street, Bridgetown. The results have also been shared with investors in its September 2017 Quarterly Report.
The report outlines returns for three of Fortress’ funds – the Caribbean Growth Fund, the Caribbean High Interest Fund, and the Caribbean Pension Fund – which all posted healthy gains and registered new highs in net asset value (NAV) per share.
The Caribbean Growth Fund, which is designed to achieve capital growth over the long-term, gained 3.2% during the quarter and was up 12.5% over the past year. The NAV per share, or total value of the securities the fund owns divided by the number of fund shares outstanding, finished at $5.7410 with net assets of the fund at $454 million. This is up from $440 million at June 30, 2017. The growth fund’s annual compound rate of return since its inception in 1996 is now 8.8% per year.
The fund’s return was influenced by gains of several Caribbean shares during the quarter which outpaced marginal improvements in earnings as well as current economic conditions. However, the Cable and Wireless amalgamation brought in an inflow of cash that would be difficult to reinvest in the current financial environment.
The High Interest Fund, which seeks income and capital preservation over the medium term, returned 0.5% for the quarter and was up 2.4% over the past year. Its annual compound rate of return since inception stands at 4.5% per year.
Meanwhile, the three classes of share that comprise the Caribbean Pension Fund were up between 3.5% and 9.9% over the past year with equity investments continuing to generate a strong performance.
As Fortress moves towards the end of its 21st year, it emphasized that as always it would continue to seek “reasonably valued investments” in order to generate returns that were attractive within the current economic climate, regionally and globally.