Fortress Caribbean Growth Fund marks 20th year with market-beating returns
Investors in the Fortress Caribbean Growth Fund had reason to celebrate recently as the fund marked its 20th year with a 9.8% return for the fiscal year ended September 30, 2016.
Since its launch in 1996, the fund’s net asset value per share (NAV) has increased from $1 to $5.14, a compound annual rate of return of 8.7% per year, said Roger Cave, investment director at Fortress Fund Managers.
“Many of the original investors in the fund have seen their investments quintuple in value over this time. We are extremely grateful for all our clients’ support over the years, and the growth in the fund’s NAV over time shows the immense value of patient, long-term investing,” Mr. Cave noted.
Mirroring the rise in the fund’s NAV, the Growth Fund’s total assets have increased to over $400 million, making it one of the largest funds in Barbados. “Exposure to long-term investments has become even more important since last year’s removal of the Minimum Savings Rate in Barbados lowered the rate of interest paid on savings accounts,” explained Mr. Cave.
The Growth Fund’s gains in 2016 came from key holdings in regional stocks such as Goddard Enterprises, Grace Kennedy and Pan Jamaican Investment Trust, as well as strong returns in the Fortress Global Funds’ value-based investments in US, international and emerging markets, where the fund has substantial allocations.
Mr. Cave noted that the strong results were even more significant against the backdrop earlier in the year of huge volatility in global markets. “The Growth Fund and the other funds we manage have continued to grow from new investment and healthy returns. We look forward to the next 20 years of helping our clients save and grow their money for the future,” he said.
The Fortress Caribbean Growth Fund allows individuals, companies and pension plans to gain access to a professionally managed, widely diversified portfolio of stocks to earn long-term returns.
Fortress also manages the Caribbean High Interest Fund, which returned 3.8% over the past year; the Caribbean Pension Fund; and the Caribbean Property Fund Limited SCC.