August 14, 2023
Sagicor Select Funds Limited (SELECTF) for the six months ended June 30, 2023, reported an 8% decrease in Interest Income totaling $430,000 compared to $465,000 in the corresponding period last year. Interest Income for the second quarter had an 11% decrease to close at $224,000 compared to $251,000 for the comparable quarter of 2022.
Dividend income amounted to $29.93 million (2022: $46.96 million), this represents a decrease of 36% year over year. Consequently, net changes in fair value on financial assets at fair value through profit or loss decreased by 124% to $506.07 million compared to $226.32 million for the six months ended June 30, 2022. The company booked net changes in fair value on financial assets at fair value through profit or loss of $259.54 million for the second quarter versus $90.16 million reported for the similar quarter of 2022. SELECTF noted, “The drop in the value of financial assets occurred during a general downturn in investor sentiment during the first half of the year due to economic uncertainty globally and rising interest rates.”
Net investment losses increased by 166% from $178.90 million in 2022 to $475.71 million for the period under review. Net foreign currency gains and other income for the six months ended June 30, 2023, amounted to $142, 000, relative to a loss of $116,000 reported in 2022.
As a result, Total Investment Loss for the six months ended June 30, 2023, amounted to $475.57 million, a 166% increase relative to $179.01 million reported in 2022. Total Investment Loss for the second quarter amounted to $243.86 million (2022: $57.79 million).
Administration Expenses totalled $11.53 million, a 40% decline from the $19.06 million reported in the corresponding period last year. Total Expenses for the six months ended June 30, 2023, amounted to $11.53 million, a 40% decrease relative to $19.06 million reported in 2022. Total Expenses for the second quarter amounted to $5.32 million (2022: $8.42 million). The Company highlighted, “This reduction stemmed from lower net asset value of the fund relative to the corresponding period of 2022.”
Net Loss for the six months amounted to $487.10 million, versus the loss of $198.08 million reported in 2022. For the second quarter, Net Investment Loss was $249.18 million (2022: $66.21 million).
Consequently, Loss Per Share for the six months amounted to $0.10 (2022: LPS: $0.04), while Loss Per Share for the quarter totaled $0.05 (2022: LPS: $0.01). The twelve-month trailing LPS was $0.15, and the number of shares used in these calculations was 5,100,000,000.
Notably, SELECTF’s stock price closed the trading period on August 14, 2023, at a price of $0.37.
Balance Sheet Highlights
The company’s assets totalled $3.13 billion (2022: $3.95 billion). The decline in assets was due to a $804.24 million decline in Financial assets at fair value through profit or loss to value $3.07 billion.
Shareholder’s equity was $3.10 billion (2022: $3.92 billion), representing a book value per share of $0.61 (2022: $0.77).
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