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NCB Financial Group's headquarters on Trafalgar Road in New Kingston, Jamaica (File photo)

Pension fund managers in Jamaica courted with new investment options

NCB Financial Group's headquarters on Trafalgar Road in New Kingston, Jamaica (File photo)

NCB Insurance, a subsidiary of the NCB Financial Group, launched its pooled investment funds geared at pension fund managers at the AC Hotel in Kingston last night.

According to Vernon James, managing director and CEO at NCB Insurance, “With NCBIC pooled funds, managers can respond to the rising demand for investment options that match the more active lifestyles of modern retirees.”

Desmond Johnson, Manager of Pensions, Client Management & Business Development at the company noted the move creates a boon for investment bodies. “Today, more than ever, fund managers can build greater value for their clients through investment. The pooled fund option gives investors a chance to get consistently higher returns for pensioners. Furthermore, we are offering this with the stability that retirees want at this crucial time of life.”

“The pool presents a larger lump sum, allowing access to secured investments with a higher buy-in than individually managed portfolios can afford. With higher asset values in play, investment managers stand to earn more for their pension fund clientele.”

– Vernon James, managing director and CEO at NCB Insurance

Johnson explained the motivation behind launching the new platform: “NCBIC has built its reputation on offering consistent value to our clientele. We have seen a rise in the demand for higher value pension products and our Pooled Fund product provides a solution for pension fund managers who strive for the best on behalf of their customers.”

NCBIC manages Type 2 Pool Funds, which under the Pensions Act 2006 are for the specific use of approved superannuation funds and individual retirement schemes. The product is therefore tailored to the specific needs of pension fund trustees and managers.

According to Johnson, NCBIC’s Pooled Fund packages have been consistently paying off for shareholders noting, “Our Pension Funds have produced average historical gross returns on Assets under Management of 16.91 per cent per annum since 2009, and we remain committed to achieving steady growth for our partners and at the same time preserving capital.”

James explained, “Within this joined structure, fund managers have the opportunity to add their portfolios to a consolidated pool of capital. The pool presents a larger lump sum, allowing access to secured investments with a higher buy-in than individually managed portfolios can afford. With higher asset values in play, investment managers stand to earn more for their pension fund clientele.”

Minister of Finance and the Public Service Dr Nigel Clarke

Not only do these high value products create enough yields to support multiple pension partners, but it also reduces costs. NCBIC Pooled Fund partners benefit from reduced management costs as fees are split across participants. In addition to the stability offered by these larger secure assets, risk is further reduced by the diversity within the pool. Fund managers have the opportunity to diversify their investments across Equity, Money Markets, Real Estate and Fixed-Income products. By spreading capital across several industries, portfolios earnings are insulated; if one area becomes compromised the majority of earnings remain protected.”

In July this year, Minister of Finance and the Public Service Dr Nigel Clarke moved amendments to the Pensions (Superannuation Funds & Retirement Schemes) (Investment) (Amendment) Regulations, 2019 which have now been adopted by the House of Representatives. These amendments will broaden the range of permissible assets in which pension plans can invest and strengthen the legislative framework with respect to safeguarding the assets of pension plans.