Sagicor Investments is moving to reshape its Sagicor Select Funds, shifting them from shares on the Jamaica Stock Exchange to a unit trust structure. Shareholders voted in favour of the change at a court-appointed meeting, and the company is now awaiting final court and regulatory approvals.

Speaking on Taking Stock with Kalilah Reynolds, Assistant VP at Sagicor Investments, Jodian Aris said the change is expected to take effect by early 2026.

At which time the Select Funds would be delisted and converted into a unit trust. Current shareholders will become clients of Sagicor Investments, holding units in the mutual fund instead of shares.

Aris explained that the move is designed to close the gap between the funds’ stock market prices and their true net asset values (NAV). At present, Select F trades at around 45 cents while its NAV is just over 50 cents. Select MD trades near 80 cents, though its NAV is more than $1.20.

Aris explained that this gap means investors are not seeing the real value of their holdings. By switching to a unit trust, investors will be able to redeem their units directly at the NAV, rather than depending on someone else in the market to buy their shares at a higher price.

The process requires a series of steps, including court approval, registration with the Financial Services Commission and the Companies Office, and final delisting from the exchange. Once complete, all shareholders will be automatically transferred into the new system. They will, however, need to provide updated documents to Sagicor to meet “Know Your Customer” requirements.

Investors should also note an early exit fee. Anyone who redeems units within six months of the new fund’s launch will face a 4 per cent penalty, reducing the payout they receive.