Fortress Fund Managers (FFM) may see significant benefits for their Barbados dollar funds as global interest rates begin to decline.
In FFM’s June 2024 quarterly report, it was highlighted that the Fortress Caribbean Growth Fund, the Fortress Caribbean High Interest Fund, and the Fortress Caribbean Pension Fund are well-positioned to take advantage of this global trend.
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After more than two years of tight monetary policies in major economies, the second quarter of 2024 marked the beginning of an anticipated cycle of rate cuts. This shift is expected to create a more favorable environment for FFM’s Barbados dollar funds. Although the second quarter was relatively quiet, with the Caribbean Growth Fund experiencing a slight decline of 2.7%, it remains up by 2.2% over the past year. The fund’s portfolio continues to be well-diversified across various securities, geographies, and currencies, maintaining a net asset value (NAV) of $7.4158 per share and total assets of $645 million.
On the other hand, the Caribbean High Interest Fund saw a modest increase of 0.4% during the same period, bringing its annual gain to 3.4%. The fund benefited from higher income, which offset declines in bond prices, as the U.S. has not yet followed other countries in cutting interest rates. The NAV for the fund’s Accumulation share stood at $2.1830, with total net assets of $138 million. This fund has maintained a steady annual compound return of 3.6% since its inception in 2002.
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The Caribbean Pension Fund showed mixed results, with some shares posting slight declines of 1.5% to 2%, while overall, the fund’s shares gained between 3.0% and 3.3% over the past year. FFM advised investors with pension portfolios to remain calm during market fluctuations, seeing them as opportunities to acquire more shares in well-managed funds at discounted prices.
With over Bds $800 million (US $400 million) in assets across 12 funds, FFM remains a leading player in regional, U.S., international, and emerging markets. As the global economic environment continues to shift, FFM’s Barbados dollar funds are well-prepared to capitalize on the opportunities presented by lower interest rates worldwide.
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