After taking almost a 40 per cent hit in profit in it’s recent financial results, Republic Bank Ltd (RBL) has now recorded large declines in its mutual funds for the first half of its financial year ended 30 June 2020.
The Total Comprehensive Income for RBL’s Republic Caribbean Equity Fund fells by 369 per cent as it moved from a $10.2 million profit in the comparable period last year to a loss of $27.5 million at the first half of 2020.
The drop in Total Comprehensive income arose due a net loss of $38.3 million as the fair value of the investments held decreased in value. This was presumably induced by the impact of the COVID-19 pandemic on the value of equities held.
The Total Assets in the Caribbean Equity Fund fell by 17.3 per cent from $152.8 million to $126.5 million at the first half of 2020. The net asset value per unit of the fund also declined by $8.78, falling from $68.57 to $59.79. This represented a 12.8 percent drop.
Also taking a hit was RBL’s Republic US$ Fixed Income Securities Fund, where the fund’s Total Comprehensive income fell by 64.3 per cent. The recorded decrease was from US $0.699 million (TT$ 4.74 million) to US $0.250 million (TT $1.69 million).
Additionally, Total Assets of the Fixed Income fund fell by 4.8 per cent, from US $22 million (TT $149.1 million) to US $20.97 million (TT $142.1 million). This, while The net Asset Value per unit in the fund increased by US $2.60 (TT 17.62), from US $106.50 (TT $721.84) to US $109.10 (TT $739.46). This represented a 2.4 per cent rise.
Meanwhile, RBL’s Republic Money Market Fund also suffered a hit as Total Comprehensive Income fell by 29.4 per cent, from $56.6 million to $39.98 million at H1 2020.
This decrease primarily arose due to a 16.2 per cent increase in fees paid, which rose from $78.1 million to $91.4 million.
However, Total Assets increased by 9 per cent from $7.4 billion to $8.1 billion and net asset value per unit in the Money Market Fund remained constant at $100.
Republic Financial Holdings (RFHL) and its subsidiaries recorded profit attributable to shareholders of the parent of $774 million for the nine-month period ended June 30, 2020. This represented a decline of $458 million or 37.2 per cent below the corresponding period in the previous year.
RFHL Chairman, in the nine-month financial statements revealed that the group’s results were reflective of the impact of COVID-19.