Fortress celebrates strong return

Fortress Fund Managers is reporting an “outstanding” performance for the financial year ending September 30, 2021, with performances across funds ranging from “strong” to “extremely strong”.

Investment Director Roger Cave shared this assessment in the leading fund manager’s 2021 Annual Reports for the Fortress Caribbean High Interest Fund, the Fortress Caribbean Growth Fund, and the Fortress Caribbean Pension Fund.

The reports, which were recently sent to investors, highlighted the performance and outlook of the three Barbados dollar funds, and come as the company celebrates 25 years.

The Caribbean Growth Fund gained 26.4 per cent for the year ending September 30, 2021. Cave described this as the Fund’s “second-best yearly result ever, as asset prices recovered from very low levels during 2020”.

The net asset value (NAV) of the Fund rose to $7.1830 as of September 30 from $5.6813 the same time last year. The Fund’s net assets were $598 million, up from $466 million in 2020. This growth was attributed to its “positive investment performance as well as to net investor subscriptions into the Fund during the year.”

The Caribbean High Interest Fund returned 3.4 per cent for the year under review.

Cave said this was a “positive and satisfying result given that global bond prices generally declined and fixed income investment options with Barbados remained extremely limited”.

Fortress’ investments in global bonds – amounting to half of the total portfolio – showed slightly positive returns. Holdings in Barbados dollar corporate and government bonds contributed mostly single-digit returns and continued to perform in line with Fortress Fund Manager’s expectations even as the local economy remained under pressure.

The report also noted that total assets in the Fund increased from $133 million to $143 million over the year and its compound annual return since inception in 2002 is 4.0 per cent per year.

Cave noted that going forward investors in the Caribbean wanting to earn an acceptable return from low-risk government and corporate bonds “still face significant challenges.”

He added that close to home “we face stressed credits and inactive bond markets, while abroad we face prevailing yields that are closer to zero than they are to our return expectations based on history”.

The three classes of shares that make up Fortress’ Caribbean Pension Fund had an “extremely strong performance” in the financial year, according to the report.

The Aggressive Accumulator share gained 23.4 per cent, the Conservative Consolidator share rose 19.4 per cent, and the Capital Secure share was up 7.2 per cent.

“These returns reflect the differing asset allocations of the classes of share as equities rallied and bonds generated low single-digit returns,” Cave explained.

The investment director announced the retirement of Sir Geoffrey Cave effective September 30, from the boards of the Fortress mutual funds and from the Fortress Fund Manager board at the end of December.

“Sir Geoffrey has chaired all the Fortress boards from inception in 1996. His leadership, direction, guidance, and most of all his keen and excited interest in the Fortress business and its clients could never be matched. His contribution to the financial success and investment returns of so many thousands of individual shareholders and large pension schemes alike also cannot be overstated. We truly thank Sir Geoffrey for all that he has done in the creation and growth of this Fund and wish him many happy years in retirement,” said Cave.

He also announced that Cave Shepherd & Co. Chief Executive Officer John Williams, a long-standing member of the boards, would assume the role of chairman.

“We look forward to his continued leadership and guidance in the years ahead,” he said.

The annual report also shared news that Ruth Henry and Greg McConnie would be joining as directors of Fortress Fund Managers and the boards of the various mutual funds.

During 2021, Fortress launched two new US-dollar mutual funds and now manages seven different US-dollar mutual funds with over US$200 million in assets.

Fortress Fund Managers now manages over BDS$800 million in assets across 12 funds with investments in regional, US, international and emerging markets. (MM)