RBTT/RBC promotes safer sovereigns at mutual fund launch

POSTED: 11/14/11 3:57 AM

“…Corporations are stabler…”

GREAT BAY – RBTT/RBC’s mutual funds – RoyTrin US Dollar Income Fund and RoyTrin US Dollar and Income and Growth Fund – go on sale here today. The launch was done last Thursday at the bank’s headquarters in Philipsburg. Beyond the marketing speech from President and Country Head Wayne Kowlessar and RBTT/RBC Manager of Investment Product Development Carver Trim, there was a clear display that the bank is not shying away from an economic reality – government debt is a bad investment right now and people’s best bets are buying the debt of companies.

“If you’re going to invest in a mutual fund you have to look at the time horizon. We believe that current market issues will be resolved over the long term. Also there are other markets beyond the United States and Europe and right now we’re looking at emerging economies like Brazil, India and China. We’ve also got a portfolio where we’re investing for 60 percent in the purchase of debts held by corporations, because corporations are stabler and are about improving the balance sheet. We do invest some in sovereign debt, but we’re looking for the safer sovereigns,” RBTT/RBC Head of Asset Management Natalie Mansoor said in response to questions about whether now is the best time for people to begin investing, especially since international markets are in turmoil.

The two funds being introduced are built on the four key principles of diversification, liquidity, competitive returns and convenience. The RoyTrin US Dollar Income Fund, which is focused on the bond market, allows for monthly withdrawals and the RoyTrin US Dollar Income and Growth Fund, which balances bonds and equity (stocks) allows investors to stay in the market on the longer term without withdrawing any profits. The entry amount for either fund is $100, 000 and a subsequent payment of $500. The average return rate will be five percent.

Both funds are registered at the Central Bank of Curacao and St. Maarten and are managed by a team based in Trinidad and Tobago. They’ve set up a telemarketing desk here as the first port of call and trained local colleagues to be answer questions that are not overly technical. Work to improve the local knowledge will continue over time. Other means of communication are a quarterly statement of an individual’s account, annual audits, half year reviews and a quarterly fund summary.

Kowlessar told the media at last Thursday’s launching that launching the new funds now is an effort by the bank to move people past simply saving money and into investing stocks and bonds. While he admits that there is greater risk, he’s also stressed that there is a greater potential reward.

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