Fortress Caribbean Property Fund resumes trading on Trinidad Stock Exchange
The shares of Fortress Caribbean Property Fund Ltd., SCC are once again trading on the Trinidad and Tobago Stock Exchange (TTSE) after a nearly two-year break.
And with this move investors in both Trinidad and Tobago and Barbados will benefit from a larger pool of potential traders that the resumption of trading on the TTSE is expected to generate.
This opportunity comes after the Fund was delisted from the TTSE in 2013 so that it could be converted into a segregated cell company (SCC) with two classes of shares – the Value Fund, to invest in income-producing properties; and the Development Fund, to hold development properties. This was done at the time so that each could pursue investment and dividend objectives independently.
Trading resumed on the Barbados Stock Exchange soon after the conversion and in Trinidad the TTSE issued authorisation for the resumption of the Fund’s trading on April 30 this year.
In outlining other benefits available to shareholders, Mr. Cave said that they were now able to trade at home in which ever of the two currencies they preferred. “The fund not only allows investors to trade in Barbadian dollars, but also in the currency of Trinidad and Tobago, thereby making it more convenient, while also potentially increasing the liquidity of the shares,” he explained.
The investment director said that investors found the Fund’s shares attractive because of the opportunity to easily invest their savings in a portfolio of real estate assets. “In addition, the Fund offers flexibility where investors can add to or sell all or part of their investment as needed. This type of access along with instant diversification and liquidity are not available when investing in real estate directly. With traditional real estate investments, for example, you can’t buy a piece of real estate for $20,000 then buy $5,000 more the week after, and then sell $7,000 the next year.”
With regard to the performance of the Fund, Mr. Cave noted that for the six-month period ending March 31, 2015 the Value Fund achieved a profit of $2.4 million compared to $2.0 million for 2014. The Development Fund, while recording a loss of $350,638 for the period, did show improvement over a loss of $1.097 million recorded in 2014.
Fortress Caribbean Property Fund Ltd., SCC is a Barbados-based closed-end mutual fund comprised of two segregated cells (funds). It invests in real estate and other securities in the Caribbean and internationally.