JMMB Hosts Corporate Breakfast for Business Community
The JMMB Group played host to scores of business executives drawn from local business community in Manchester at its recent (April 19) corporate breakfast; where the company’s financial experts discussed financial solutions, designed to provide winning solutions by taking advantage of the opportunities that exist in the current macroeconomic environment.
Theodore Mitchell, JMMB Group sovereign research analyst, in his presentation on Jamaica’s macroeconomic environment, painted a positive outlook for the country based on the observed stability in the domestic economy; as evidence by the continued trend toward lowering of interest rates, subdued inflation rate and stable exchange rate. In making his point, he notes that with the scaling down of government debt in the market and heightened confidence in the country’s economic programme, interest rates have been trending downwards. Lower government debt issuances has created space for corporate debt issuance to refinance higher cost debt or to build-out and/or expand their capacity. Additionally, a number of corporates are diversifying their funding through direct capital issuances on the Jamaica Stock Exchange (JSE) via initial public offerings (IPOs). In his deliberation on inflation, Mitchell advised that the 12-month inflation rate as at end-March 2018 was 3.9%, which was below the Bank of Jamaica (BOJ) forecast range of 4.5% - 6.5% for the 2017/18 financial year. The low inflation rate reflects in part stable domestic food and import prices as well as a relatively stable exchange rate. He stated that a low inflation environment encourages business and consumer confidence.
In his deliberation on the exchange rate, he also pointed out that the new exchange rate mechanism put in place by the BOJ to manage the exchange rate has helped to smooth out volatility in the currency market. While also adding that developments in the economy including evolution in the current and capital account will likely lead to increase in net international reserves (NIR) and continued stability in the foreign exchange market.
Mitchell stated that as consequence of lower government debt issuances and the falling interest rates, persons are looking to the stock market to improve returns on their investment. He however cautioned investors to buy stocks in companies that are growth oriented, well-diversified and have a strong track record in the domestic/export market, as opposed to simply choosing stocks based wholly on upward price movements; as price could pull back sharply and result in capital losses.
Against this background, Michelle Sinclair-Doyley, manager, client financial education at JMMB, shared strategies in developing financial clarity, so that the attendees could take advantage of the opportunities presented by stable macroeconomic forecast. Similar to developing a strategy for success in the boardroom, she noted it was necessary to start by creating SMART (specific, measurable, attainable, result-oriented and time-based) goals, as this formed the basis for executing your ‘financial game plan’ and would help to determine the cost of ones goal/s. In giving insight on how to formulate an investment game plan, the financial educator outlined that this was based on the fundamentals of managing and/or reducing debt and making incremental investments that provide solid returns, in keeping with one’s financial goals. Portfolio management is one such way recommended by Sinclair-Doyley to make incremental investments; while underscoring the need to align one’s risk tolerance with his/her financial goals. She added that this approach affords investors to maximize their portfolio return by including a mix of assets such as: equities, bonds, government securities, cash and real estate, based on their risk appetite. In sharing the final prong in developing financial clarity, she encouraged the attendees to protect their assets with insurance, which serves as a buffer for financial eventualities such as loss and damage, without compromising their financial security.
JMMB Group also used the opportunity to share details about its full suite of offerings including: capital market services, commercial banking solutions for businesses and individuals and corporate investments solutions.
Manager, client partnership at JMMB Investments, Mandeville branch, Kenisha Dwyer-Powell outlined that the event, hosted at OMG Restaurant, is in line with the company’s financial partnership approach. Additionally, it seeks to expose investors to solid financial management advice tailored towards the unique needs of selected groups, under the theme, ‘Markets are Changing are You and Your Company Positioned to Win?’