BARBADOS-BASED INVESTMENT FIRM Fortress, which manages three funds with combined net assets of about $690 million, is reporting recent “negative returns”.
In its latest report released ahead of its annual investor’s forum this week, Fortress said after “a good start to the year”, there were third quarter declines for its $356.1 million Caribbean Growth Fund, $116.6 million Caribbean High Interest Fund, and $217.2 million Caribbean Pension Fund.
“After a good start to the year, the third quarter brought negative returns for the Fortress Funds as stock and bond markets fell around the world. As you may know, we had been expecting market weakness for some time – corrections are inevitable after extended periods of strong returns, especially in the stock market,” the company said.
“In the Fortress Caribbean Growth Fund we had raised cash and reduced market risk, but against a very hostile backdrop the quarterly return was still negative. We do not know if more declines are to come in the near term, but we do know that the prices of good quality securities always recover.”
It added: “We also know that lower prices today inevitably mean higher returns for the future – what matters most for long term returns is what’s in the portfolio and at what price. Keeping the portfolios positioned where the value is best and the risks are appropriate is our job, and it is the same day in and day out in all market conditions.”
The Caribbean Growth Fund declined 6.5 per cent during the third quarter and is down three per cent over the past year, the Caribbean High Interest Fund declined by one per cent during the quarter and is up one per cent over the past year, and the Caribbean Pension Fund showed declines of two to six per cent for the quarter and have returned zero to minus two per cent over the past year. (SC)