Scotia Group Jamaica’s exit from public ownership presents former minority shareholders with a new decision: what should replace the investment in their portfolios?
During Taking Stock’s November 3 Analysts segment, Sagicor Wealth Advisor Kandice Green urged investors to use the payout as an opportunity to review their financial goals, investment timelines and exposure to different sectors.
The discussion also featured Sagicor’s Ossey Farr, who examined how US political developments, borrowing costs and artificial intelligence spending could influence investment decisions overseas.
Start with your goals
Green said the first question for former Scotia shareholders is whether their existing portfolio still matches their needs.
An investor who previously held a large concentration of financial stocks may want to diversify when reinvesting. Someone who expects to need the money soon may require a different approach from someone investing for another decade.
The replacement also does not necessarily have to be another listed company.
Green identified Treasury bills, repurchase agreements and certificates of deposit as alternatives that may better suit some investors’ current objectives.
Her central message was that shareholders should assess the role Scotia played in their portfolios before deciding where the proceeds should go.
Look beyond the dividend
For investors seeking another stock, Green said the comparison should extend beyond dividend payments.
She highlighted liquidity—the ability to sell shares when needed—alongside earnings performance and the consistency of income.
Green discussed Sagicor, GraceKennedy, TransJamaican Highway and Massy Holdings as companies investors could examine, depending on the exposure and characteristics they want. Her comments on Sagicor came in the context of her affiliation with the group.
Rather than treating any one company as an automatic replacement, she encouraged investors to have a comprehensive discussion with their adviser about their overall portfolio.
US investors face a different set of questions
Turning to overseas markets, Farr said investors should look beyond election headlines to the policies and economic conditions that affect company earnings and borrowing costs.
He discussed how the balance of power in Congress could influence the ability to pass tax and spending measures, while expressing concern about the implications of government borrowing for longer-term Treasury yields.
Higher yields can raise the return investors demand from stocks, he explained, because investors have alternative places to put their money.
Farr also highlighted the strength of AI-related investment, which he said was helping support corporate activity and market sentiment.
AI opportunities extend beyond technology companies
Investors interested in the AI expansion do not necessarily have to focus exclusively on companies developing the technology, Farr suggested.
He pointed to utilities supplying electricity to data centres as businesses that could benefit from the infrastructure buildout. Some also pay dividends, making them relevant to investors seeking income alongside exposure to that investment theme.
Farr encouraged investors to maintain a clear investment thesis and rules for decision-making, rather than reacting emotionally to political developments or daily price swings.
Across both discussions, the emphasis was on making deliberate choices: understanding what an investment contributes, how it fits with other holdings and when the money will be needed.
Watch the Analysts discussion on Taking Stock.
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