M O N T H LY U P D A T E S A N D A N A L Y S I S F R O M T H E V M W E A L T H T E A M
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VMIL Recorded Strong Wins in 2020
Investment Tips for Moms » Stock Picks » Market Update & Economic Overview - April 2021
Investment Tips for Moms
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Stock Picks
VMIL Recorded Strong Wins in 2020
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Market Update and Economic Overview
Denise Marshall-Miller MEET THE TEAM
Manager, Equity & Bond Trading VM Wealth Management
Mrs. Denise Marshall-Miller joined the Victoria Mutual Wealth Management Limited (VMWM) team as Manager– Bond Trading in January 2011. Her mandate is to facilitate the growth of bond trading revenue by providing clients with diversified bond options. Towards this end, she focuses on building and expanding trading relationship with overseas counterparts, providing guidance to the Bond Trading Team and deepening relations with existing VMWM clients. Mrs. Marshall-Miller has over a decade of experience in the Finance Industry and has built a strong track record as a successful Fixed Income Trader. She consistently demonstrates her expertise in deal structuring, Corporate and Sovereign Bond Trading, US Treasury and Treasury Management. Her career in investment started at Mayberry Investments Ltd as a Wealth Advisor and quickly accelerated to that of Manager, Market & Trading Unit. Her core competence entails the creation of customised portfolios specifically designed to meet clients’ investment needs and maximise returns. A certified Trader from the Morgan Keegan Bond Schools, Mrs. Marshall-Miller holds an MBA from the Mona School of Business and a BBA (Hons) from the University of Technology with a major in Finance.
Investment Tips
FOR MOM
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or moms, their children’s wellbeing is a top priority. From making sure bellies are full to drying tears to ensuring homework is done - being a mom can be a full-time job, and with all that goes into ‘mom-ing’, making financial plans for the future does not always get the attention it deserves.
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The good news is that can change as quickly as today! If you’re a mom thinking of putting in place a financial plan for your kids, but you’re not quite sure where to start, here are some tips to put you on the right path: START AN EMERGENCY FUND – If you’re going to take care of your children’s finances, you should ensure you’re on sturdy footing yourself by setting up an Emergency Fund. Start by putting $50,000 or $100,000 in an account that’s not easily accessible. An emergency fund will prevent your plans from being derailed by unexpected events that can, and will, pop up along the way. This amount is just a starter fund; it is very important to consistently save toward having at least 6 months’ salary in that fund at all times. GET INSURED – If you don’t have life and disability insurance, now’s the time to get it. Although we all have dreams for our children’s future, the sad reality is there’s no guarantee we’ll be here to see it and there’s also no guarantee we’ll always be physically able to do what it takes. It’s a good idea to have a policy in place with your child or children as beneficiaries so if something happens to you along the way, your plans for them can still happen. Having adequate health insurance provides protection against a major health crisis depleting your reserves. Life insurance is a great way to take care of your children when you’re no longer around to do it yourself.
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MAKE A WILL – While we’re on the topic of making sure the kids are good when you’re gone, make a will as soon as possible. This is one to-do that gets put off, usually because we don’t think we have any assets or that it can be done later, but sometimes later never comes. However, even if you don’t have the typical “assets”, you probably have bank accounts, shareholdings or other instruments that will be a lot easier to distribute if you have a will. Preparing a living will is also a good idea. It provides instructions about your desires for medical treatment in the event you are no longer able to give informed consent. Don’t worry, you can revise your will from time to time if needed. It takes a lot of guesswork and potential stress out of the equation for your loved ones at a time when they may already be overwhelmed. THINK BIG AND INVEST ACCORDINGLY – If your children are young, time is on your side. Thanks to compound
interest, small regular investments will pay off big time over the next 15 or 20 years. Start investment accounts in their names! Investment options like Unit Trust funds based on equities or real estate are an excellent idea in this case. While the equities market goes up and down daily, the long-term trend is usually positive. You’ll be able to invest amounts you can afford for attractive returns over the long term. Diversification is a good way to give your portfolio some insurance against changes in the markets. Ask your Wealth Advisor about the best options for you. It’s a good idea to start with a goal or two, but even if you don’t have an end in mind, get started anyway. You can always figure that part out later. Besides, goals can change once your kids start to have dreams of their own. The important thing is to get your own foundation set and to stay in touch with your Wealth Advisor as you go. Being a mom is hard but the peace of mind that comes from knowing your children will be okay is one of those things you can’t put a price tag on.
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VMIL Recorded
STRONG WI
in 2020
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Excellence in Digitalisation & Customer Experience Underpins Difficult Year
ictoria Mutual Investments Limited (VMIL) recorded strong wins in 2020, rising above the economic fallout of the COVID-19 pandemic to record a consolidated revenue of $1.88 billion, while implementing a suite of solutions to improve excellence in service delivery and digitalisation. This was announced at the company’s 4th Annual General Meeting, which was streamed virtually via a private-user platform from its HalfWay Tree-based corporate offices in St. Andrew on Tuesday, May 25, 2021.
STRONG FINANCIAL PERFORMANCE VMIL consolidated revenue for the year reflected an increase of $192.63 million or 11.4 per cent over the $1.68 billion recorded for 2019. This growth in revenue was primarily driven by gains from investment activities, which
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increased by $108.09 million. The company’s Net Profit After Taxes, amounted to a commendable $433.59M. Total assets increased year-over year by 17.4% to $29.72 billion as at December 31, 2020, primarily attributable to an increase in resale agreement balances. Total liabilities were $25.34 billion as at December 31, 2020, an increase of $4.34 billion or 20.7 per cent over the prior year, driven mainly by the increase in borrowings and repurchase agreements. VMIL’s capital base continued to be strong throughout the year, with total shareholders’ equity standing at $4.38 billion, up from $4.33 billion, which resulted in a book value per share of $2.92 (2019: $2.88). The growth in total equity was mainly attributable to the net increase of $388.59 million in retained earnings, representing the undistributed portion of the 2020 retained earnings; and the year over year decrease of $332.48 million in the investment revaluation reserve, representing revaluation losses on investment securities and equity instruments.
capitalised, with a risk weighted capital adequacy ratio of 15.56 per cent, which is above the regulatory requirement of 10 per cent. The capital to total assets ratio of 14.24 per cent far exceeded the regulatory minimum of 6 per cent. Assets managed on behalf of Clients, on a non-recourse basis, grew by an impressive $3.35 billion or 11.4 per cent, from $29.48 billion as at December 31, 2019 to $32.82 billion as at the end of 2020. The year over-year growth was fueled by strong net inflows of $2.18 billion from VM Wealth’s Portfolio Management Clients. The company saw net inflows of $1.17 billion into the Unit Trust portfolios.
DRIVING DIGITALISATION AND EXCELLENCE IN CUSTOMER EXPERIENCE In 2020, VMIL launched an innovative Client Management Portal, its first digitalisation project, which allows Clients the convenience of accessing their statements and making transaction requests online.
VM WEALTH CONTINUED TO BE WELL CAPITALISED
REGIONAL EXPANSION OF CARILEND
Victoria Mutual Wealth Management Limited, VMIL’s licensed securities dealer, continued to be well
The year saw the regional expansion of Carilend, a peer-
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to-peer lending platform with the launch of Carilend Jamaica, a significant milestone for the business and a win for the local economy. VMIL acquired a 30 per cent stake in Carilend in 2019. Carilend, the first online lending platform company in the Caribbean, is an integrated end-to-end solution providing loans to qualified, creditworthy borrowers in the region.
MEETING THE NEEDS OF CLIENTS The business successfully launched two additional products based on feedback from its Clients. These are the VM Unit Trust Goal Maximizer Portfolio and a US Equity Trading platform, which allows online trading in US equities. Notwithstanding the upheaval in the local and global economies, VMIL accelerated the expansion of its local footprint, with the establishment of additional branches, taking the number of touchpoints to ten. This demonstrated the company’s sound commitment to providing personalised services to Clients as well as its confidence in the future rebound of the financial sector.
RESULTS-FOCUSED LEADERSHIP AND TEAM Michael McMorris, Chairman, VMIL, said the Board of Directors are grateful to the results-focused leaders and Team Members for their outstanding work “of
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Notwithstanding the upheaval in the local and global economies, VMIL accelerated the expansion of its local footprint, with the establishment of additional branches, taking the number of touchpoints to ten. guiding and empowering our Clients in their financial affairs especially in the face of the pervasive effects of the global pandemic. This makes us most proud. The significant achievements of the year make it clear that the future holds great things for the business”. In his address to the AGM, Rezworth Burchenson, CEO, VMIL & VM Wealth Management Ltd, said while 2020 was a difficult year, it reinforced the resilience of his team and drove innovation and creativity. “It tested our adaptability, innovation and creativity. However, through the resilience of our team, we embraced the changes, and we achieved some significant wins in 2020 that were in keeping with our vision to be the leading Caribbean-based provider of financial services,” he said.
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Wealth Knows
Bear Market A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment. 9
Market Update and Economic Overiew April 2021
Fixed Income The two-day Federal Open Market Committee (FOMC) meeting concluded Wednesday April 28. As expected, the Fed maintained its support for the economy by maintaining interest rates and keeping the US$120 million monthly buy-back programme unchanged. In addressing concerns about the tapering of the buying programme, the Chairman assured that the market will be given ample notice before any discontinuation. Read the full report
Money Market The Bank of Jamaica’s overnight rate of 0.50%, remained unchanged at the March 29, 2021 rate consideration. The next review is scheduled for May 18. Yields on the BOJ 30-day CD declined from 2.47% on February 24, to 0.55% on March 24, setting at 0.60% on April 9. However, bids as high as 3.81% were submitted, indicating an increase in the risk inherent in the market. Additionally, tight liquidity has extended for several weeks now. Read the full report
Equities The Bank of Jamaica (BOJ, on April 1, reached an agreement with financial holding companies and other deposit-taking institutions, to allow the resumption of dividend declarations and distributions. Any dividends previously declared for 2019 and 2020 can now be distributed and dividends for 2021 can be declared and distributed. Read the full report
Foreign Exchange Demand for the greenback, led by end-users’ demand and portfolio positioning, surged in April. The Central Bank supplied USD 30million to end-users on April 16th, which satisfied demand temporarily. However, the JMDUSD pair went on to post daily record sell highs with April 27th recording the weakest level at $154.82. The Bank of Jamaica (BOJ) provided no additional supply throughout the month. Read the full report
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