Growth Fund taking lump sums again

Investors once again have the opportunity to put big chunks of savings into the popular Fortress Caribbean Growth Fund as Fortress Fund Managers is once again accepting lump sum investments in the flagship investment tool.

The leading fund manager, which recently informed its investors by letter of the resumption, is now accepting deposits of up to $250,000 per investor, per year.

“With the alleviation of some of the financial stress in the Barbados financial system, combined with recent investments made by the Growth Fund in global markets at attractive levels, the fund is once again in a position to accept limited lump sum investments,” the letter read.

The correspondence said the limit of $250,000 per investor, per year was in place “to ensure as many investors as possible” can access the Fund in the way that suits them, especially given the low deposit rates now prevailing on bank deposits.

Back in January 2017 Fortress temporarily suspended new lump sum subscriptions to its Growth Fund along with the Fortress Caribbean High Interest Fund and the Fortress Caribbean Pension Fund. This was due to a lack of investment opportunities that met the funds’ investment policies and objectives.

Investment Director Roger Cave had explained: “We did something similar in 2004 when the region’s stock markets had become quite expensive and we were unable to invest new subscriptions due to a lack of available and good-value shares on regional exchanges.”

Fortress agrees with finance experts around the world that automatic monthly saving plans, including pensions, are the most effective way to save and invest for the future. To this end, during the temporary suspension investors were still able to use these automatic monthly savings programmes to invest.

“We advise investors to continue using these instruments for their core saving,” says the company.

Limits on lump sum contributions remain in place for the Caribbean High Interest Fund.

The Caribbean Growth Fund was the first fund launched by Fortress in 1996. It uses a value approach to invest primarily in Caribbean and international equities and focuses on capital appreciation of assets over the long term. Its annual compound rate of return from its inception to December 31, 2018 is 8.2 per cent, per year. As of March 22, the Growth Fund was up 6.5 per cent.

Fortress manages more than $650 million across 11 different funds with regional and global investments.