press releases

The ongoing conflict between Russia and the Ukraine and its resulting impact on global oil prices is a glaring reminder of the volatility and uncertainty that exists relative to the fossil fuels market. 

This provides a strong argument for an increased push towards the development of sustainable alternative energy sources, especially in small island developing states such as Barbados, which remain vulnerable to external shocks and the volatility of crude oil prices. It is for this reason that Sagicor is encouraging individuals to invest in its new Renewable Energy Fund. 

Portfolio Manager with Sagicor Asset Management Inc, Kareem Manning, said the Eastern European conflict reminds us of the influence that the large oil production states have, can drive up prices significantly, thereby impacting global supply, along with having a contagion effect on manufacturing costs and overall inflation. 

“There is therefore a great desire globally to move away from the reliance on fossil fuels and develop our own energy sovereignty”, said Manning. “The Government of Barbados has made a commitment to transitioning Barbados into a 100% renewable and carbon neutral island by 2030. This will be based on the elimination of fossil fuels for domestic consumption and the exportation of all hydrocarbons produced on and offshore for the generation of foreign exchange and promoting economic growth.”

The Portfolio Manager explained that the achievement of these goals requires the development of a framework to facilitate investment, not only to sophisticated investors but also to the ordinary Barbadian; pointing out that this is being seen locally with the Government working with the Financial Services Commission to develop a regulatory regime that would encourage companies and individuals to invest in this space. 

This is further supported by the fact that almost every country in the Organisation for Economic Co-operation and Development (OECD) has a national plan to reduce fossil fuel consumption, which is a clear indication that renewable energy is there to stay and will be long-term pillar of economic growth and stability. 

“In light of this shift away from fossil fuel and crude oil-based commodities, now would be a good time to consider diversifying your investment portfolio”, Manning argued. “Many investors want to get out of the fossil fuel business and start investing within the green energy sector, but don’t wish to go through the technical and fundamental research over the many companies that are covered within this growing sector. The Sagicor Renewable Energy Fund is therefore an attractive option for such potential investors who seek to a take deep dive into green and sustainable investing.”

The Sagicor Renewable Energy Fund will invest in global securities of companies in the renewable energy sector, largely in companies which are expected to benefit from the anticipated rapid growth in use of clean and renewable alternatives to fossil fuels. The fund will invest from time-to-time in technologies such as photovoltaic and solar thermal products, wind turbines and other equipment used in alternative energy production. Investment will also be seen in companies generating electrical power from geothermal resources, exploring technology to harness wave and tidal power, firms involved in biotechnological advances in the biofuels field, alternative fuel marketing companies and those engaged in the sale of alternative energy powered vehicles and related products. 

As with all of the company’s other mutual fund products, the minimum initial investment required is Bds$500.00, with a minimum of $100.00 being required for any subsequent injections which are at the option of the shareholder. To find out more about the renewable energy fund and how they can get involved, individuals can visit https://sami.bb or call 467-7616.