FOR INTERNAL USE ONLY

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1 FOR INTERNAL USE ONLY

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3 What is a Unit Trust? A Unit Trust is an investment instrument in which the savings of many individuals are pooled together in a Fund, and is managed by a professional fund manager. Investors ownership in the fund is determined by the number of units they hold. These investors are called unit holders. Unit Trusts in Jamaica are governed by the provisions of the Unit Trust & Securities Acts and are regulated by the Financial Services Commission (FSC), a government body established to regulate the operations of certain financial institutions.

4 Unit Trust Investment Growth Fund was registered in Jamaica on May 25, 1994, and subsequently changed to The Funds in October On May 31, 2012 Sagicor Life Jamaica Limited (Sagicor) was delegated specific management and administrative duties of The Sagicor Funds. The Trustee, Jamaica Central Securities Depository (JCSD) Trustee Services Limited protects the interests of the investors by ensuring that the managers comply with the provisions of the Trust Deed along with the regulations of the Unit Trust Act and Securities Act. There are ten Sagicor Funds portfolios that are differentiated by their investment policies and strategies.

5 How Do The Sagicor Funds Work? The Sagicor Funds provide you with the flexibility of investing in an individual portfolio or a combination of portfolios, depending on your investment objectives. The value of these investments may change from day to day, and are valued at the prices prevailing at market close. Units are valued each business day and are published on Sagicor s website (

6 Build a portfolio of funds to meet your specific investment needs based on the investment objective and make-up of the portfolios outlined below: Portfolio Investment Objective Investment Make-up Optima Liberty Solution Money Market To provide investors with returns above the Jamaica Stock Exchange (JSE) Main Index To provide investors with returns above the JP Morgan Central America & Caribbean Index (Jamaica Sovereign) To provide investors with returns above the established short-term risk free government bond benchmark To provide investors with returns above the established short-term 30 day risk free Bank of Jamaica (BOJ)/Government of Jamaica (GOJ) benchmark Mainly invested in blue chip stocks listed on the JSE Mainly invested in Jamaican dollar and US dollar denominated debt instruments issued by Government of Jamaica (GOJ) Consists mainly of Jamaican dollar denominated GOJ debt instruments Invested largely in short-term sovereign debt

7 Portfolio Investment Objective Investment Make-up Global Equity Real Growth Diversified Investor Corporate Venture Real Estate To provide investors with returns above the Standard & Poors 500 (S&P 500) Index benchmark To provide investors with returns above the Jamaican inflation rate To provide investors with returns above the Jamaican inflation rate To provide investors with returns above the United States 10-year Treasury Yield % To provide investors with returns above the JSE Main Index basis points To provide investors with returns above the Jamaican inflation rate basis points Consists largely of equities listed on recognised international exchanges Consists mainly of Inflation Indexed sovereign debt Consists of a mixture of various portfolios as determined by the Investment Managers Consists mainly of US dollar denominated international corporate and sovereign debt securities Consists mainly of Jamaican dollar and US dollar securities (mainly equity based) Invested primarily in real estate related assets across property types, geographic borders, with a regional focus

8 The Sagicor Funds Risk Meter The table below outlines the risk level of The Sagicor Funds portfolios: Fund Money Market Real Growth Solution Corporate Liberty Diversified Investor Real Estate Global Equity Optima Venture LOW MODERATE HIGH Risk Spectrum The portfolio s unit price may go up or down and the value of an investment in a portfolio may be greater or lesser than the initial investment in the portfolio.

9 Charges and Minimum Holding Period Sagicor Funds carries no front load fee. A penalty however will be applied if the portion invested at any point in time is encashed before the minimum holding period outlined below: Portfolio Minimum Investment Holding Period Preliminary Charge Optima $ days 0% 4% Liberty $ days 0% 4% Solution $ days 0% 4% Money Market $ days 0% 4% Global Equity $ days 0% 4% Real Growth $ days 0% 4% Diversified Investor $ days 0% 4% Corporate $ days 0% 4% Venture $ days 0% 4% Real Estate $500 Million 3 years 0% 4% Penalty

10 Benefits of Investing with Sagicor Unit Trust Management Our professional Fund Managers select the best investments to include in each portfolio with the aim of outperforming the established benchmarks. Flexibility Unit holders have full access to their funds at any time. Diversification Investors in The Sagicor Funds benefit from diversification within and across asset classes to manage risk. Protection The Trustee ensures that the Unit Trust operates in accordance with the Trust Deed as specified by the Unit Trust Act and Securities Act. Transparency Prices are published daily on our website (www. sagicorja.com). Statements are also produced quarterly or upon request, so you may monitor the performance of your investment. Accessibility With a minimum investment of $500, The Sagicor Funds is the most affordable unit trust available in Jamaica.

11 LOW RISK OBJECTIVE: The portfolio seeks to provide investors with a minimum return in line with established short-term 30 day risk free Bank of Jamaica (BOJ)/ Government of Jamaica (GOJ) benchmarks. Money Market is a short-term fixed income portfolio invested largely in suitable sovereign debt and is denominated in Jamaican dollars. This portfolio is ideal for investors who have a short-term investment horizon and may need liquidity from time to time. 1 BENEFITS: Small and large savers receive the same rate of return Liquid investment Protection provided by an Independent Trustee Investments are easily accessible and have a minimum holding period of 90 days Professional and experienced management Tax-free if held for over 5 years (maximum investment of $1M per year) BENCHMARK: BOJ/ GOJ 30 days INCEPTION YEAR: 2012

12 LOW RISK OBJECTIVE: The portfolio seeks to provide investors with returns above the Jamaican inflation rate. Real Growth is a fixed income portfolio invested in largely inflation indexed sovereign debt, denominated mainly in Jamaican dollars and is suitable for the conservative investor. Real Growth investors would have a long-term horizon, but may need liquidity from time to time. 2 BENEFITS: Small and large savers receive the same rate or return Protection provided by an Independent Trustee Investments are easily accessible and have a minimum holding period of 90 days Professional and experienced management BENCHMARK: Jamaican Inflation Rate INCEPTION YEAR: 2012

13 LOW RISK OBJECTIVE: This portfolio seeks to provide investors with returns above the established short-term risk free government bond benchmark. Solution is a fixed income portfolio invested largely in sovereign debt. 3 BENEFITS: Liquid investment Small and large savers receive the same rate of return Professional and experienced management Protection provided by an Independent Trustee Investments are easily accessible and have a minimum holding period of 90 days Tax-free if held for over 5 years (maximum investment of $1M per year) INVESTMENT STRATEGIES Macroeconomic analysis to guide decision-making Research of the economic climate to determine the trend of interest rates and other contributing factors of the fixed income market BENCHMARK: Government of Jamaica 365 days Bond Yield INCEPTION YEAR: 1994

14 MODERATE RISK OBJECTIVE: The portfolio seeks to provide investors with a return in line with the United States 10 year Treasury Yield %. Corporate is invested mainly in US dollar denominated international corporate and sovereign debt securities. This portfolio is suitable for investors who would have a moderate investment style, and have a medium to long-term investment horizon, and may have limited liquidity needs in the first year. Corporate invests in acquisitions of debt with the following attributes: Investment Grade Highly Liquid Corporate/Sovereign International 4 BENEFITS: Geographic diversification from holdings in international and regional companies Small and large savers receive the same rate of return Protection provided by an Independent Trustee Investments are easily accessible and have a minimum holding period of 90 days Tax-free if held for over 5 years (maximum investment of $1M per year) BENCHMARK: United States 10-year Treasury Yield % INCEPTION YEAR: 2011

15 LOW TO MODERATE RISK Liberty is a fixed income portfolio invested in largely sovereign debt suitable for investors who would have a conservative investment style. Liberty is linked to the US dollar and therefore offers some protection from depreciation in the Jamaican dollar. This portfolio is suitable for investors who may have a short-term investment horizon and may need liquidity from time to time. 5 OBJECTIVE: The portfolio seeks to provide investors with returns above the established JP Morgan Central America & Caribbean Index (Jamaica Sovereign) benchmark. BENEFITS: Provides some hedge against movement in the value of local currency Professional and experienced management Protection provided by an Independent Trustee Investments are easily accessible and have a minimum holding period of 90 days Tax-free if held for over 5 years (maximum investment of $1M per year) INVESTMENT STRATEGY: Macroeconomic analysis to guide decision-making Research of the economic climate to determine the trend of interest rates and other contributing factors of the fixed income market BENCHMARK: JP Morgan Central America & Caribbean Index (Jamaica Sovereign) INCEPTION YEAR: 2005

16 MODERATE RISK OBJECTIVE: The portfolio seeks to provide investors with a stable investment that produces a return in line with the Jamaican inflation rate. Diversified Investor is a balanced asset portfolio invested in a mixture of various portfolios as determined by the Manager. This portfolio is ideal for investors who have a long term investment horizon, and have limited liquidity needs in the first year. BENEFITS: Risk spread across various asset classes Protection provided by an Independent Trustee Investments are easily accessible, and have a minimum holding period of ninety days Professional and experienced management BENCHMARK: Jamaican Inflation Rate INCEPTION YEAR:

17 MODERATE RISK OBJECTIVE: The portfolio seeks to provide the moderate institutional investor with a return above Jamaican inflation rate. This is a real estate portfolio invested in various real estate related assets across property types and geographical borders. Real Estate is marketed as a moderate risk property portfolio, with investment in the real estate related structures mainly domiciled in the Caribbean region. The value of the real estate properties in this portfolio are appraised at least annually by an external independent valuator. This portfolio is ideal for institutional investors who have a long term investment horizon, with limited liquidity needs in the first 3 years. 7 BENEFITS: Protection provided by an Independent Trustee Professional and experienced management Diverse real estate investments BENCHMARK: Jamaican inflation rate basis points INCEPTION YEAR: 2012

18 MODERATE TO HIGH RISK OBJECTIVE: The portfolio seeks to provide investors with returns in line with the Standard & Poors 500 Index over the long-term, yet still allowing for liquidity from time to time. Global Equity consists largely of equities listed on recognized international exchanges and denominated primarily in US dollars. This portfolio is suitable for investors with a moderate to high risk tolerance, and have a long-term investment horizon. 8 BENEFITS: Small and large savers receive the same rate of return Protection provided by an Independent Trustee Investments are easily accessible and have a minimum holding period of 90 days Professional and experienced management BENCHMARK: Standard & Poors 500 Index INCEPTION YEAR: 2012

19 MODERATE TO HIGH RISK OBJECTIVE: The portfolio seeks to provide investors with returns above the established Jamaica Stock Exchange (JSE) Main Index benchmark. Optima is largely an equities portfolio, invested mainly in blue chip established equities on the Jamaica Stock Exchange (JSE). This portfolio is suitable for investors with a moderate investment style and may have a long-term investment horizon, with liquidity needs from time to time. In 2011 Optima was named the top performing unit trust portfolio in Jamaica. 9 BENEFITS: Diversified pool of equities Professional and experienced management team Liquidity Units are more liquid than a direct investment in the stock market Protection provided by an Independent Trustee Investments are easily accesible and have a minimum holding period of 90 days There is no Transfer or Capital Gains Tax INVESTMENT STRATEGY: Macroeconomic analysis to guide decision-making Thoroughly research companies and their operating environment Investment in companies with strong net income growth potential and balance sheet BENCHMARK: JSE Main Index INCEPTION YEAR: 1994

20 HIGH RISK This is an equity portfolio invested in equity securities whose geographical focus is regional and are suitable for investors with an aggressive investment style. These investors would have a long-term horizon with limited liquidity needs in the first year. The investment strategy would surround the purchasing of private and public equity. The companies that will be considered are emerging, growthoriented, and start-ups, domiciled in the Caribbean region. 10 OBJECTIVE: The portfolio seeks to provide investors with capital appreciation above the established Jamaica Stock Exchange (JSE) Main Index basis points benchmark. BENEFITS: Small and large savers receive the same rate of return Geographic diversification derived from holdings in regional companies Protection provided by an Independent Trustee Investments are easily accessible and have a minimum holding period of 90 days There is no Transfer or Capital Gains Tax BENCHMARK: JSE Main Index basis points INCEPTION YEAR: 2011