“Don’t panic; stay invested” says Sagicor

July 09, 2020

BRIDGETOWN, Barbados Sagicor Asset Management Inc (SAMI) is reminding individuals of the importance of relying on the fundamental disciplines of investing and the avoidance of panic induced behaviours and reactions.


This advice comes from SAMI’s Vice President – Investment Management Services, Dexter Moe, who was speaking against the backdrop of the COVID-19 pandemic and the impact it has had on the global investment landscape and investor confidence.


The leading investment management company recently advised its clients via a market review and assessment update, that following the end of March, investors who weathered the tough first quarter and either maintained or took the opportunity to add to their investments at more favourable price levels, witnessed the start of a recovery towards the end of May. Furthermore, they added that the easing of lockdown restrictions, coupled with government-imposed measures to stimulate economic activity, supported the recovery in the stock market. 


“During the second quarter, our Funds have benefited from the recovery of international equities and experienced moderate improvement in their performances”, said Moe. “At the end of May this year, the Sagicor Preferred Income Fund showed a slight decline of 0.7% when compared to the same point in 2019, while the Sagicor Select Growth Fund and the Sagicor Global Balanced Fund showed considerable recovery and ended the same period down by only 6.0% and 6.6%, respectively, which is up from the double-digit losses seen at the end of March this year. This represented positive returns of 5.7% and 4.0% respectively for the Select Growth Fund and the Sagicor Global Balanced Fund in the two months following March 27, 2020. The Sagicor Preferred Income Fund also edged higher and returned 1.0% for this period”, he explained


“Over the years the Funds’ performances have remained competitive, highlighting the importance of staying invested where time and individual financial capacity permit”, stated the investment expert. “If an investor is in a position that they don’t need to withdraw their money in order to meet their current financial obligations, they should ride out this period while taking advantage of the reduced prices of several investment products.”


Moe also indicated that the downturn seen at the start of the year followed the positive returns recorded in 2019 led by the Sagicor Select Growth Fund, which saw 12.0% growth over 2018, while the Sagicor Global Balanced Fund and the Sagicor Preferred Income Fund grew by 9.5% and 6.0%, respectively when compared to 2018.


“We therefore strongly advise our clients to remain committed to their long-term objectives as long as their financial situation allows them to do so”, concluded Moe.