Mayberry's corporate office on Oxford Road, New Kingston.- File

Ashford W. Meikle, Business Reporter

Having received its licence from the regula-tors Financial Services Commission (FSC) in January, Mayberry Investments Limited will, by the end of the year, provide pension-fund investment and management services, CEO Gary Peart recently told shareholders on Friday.

"When we look at how well we have managed our own pension funds, where it started and where it is now, we figure we would do a good job at it," said Peart at the company's annual general meeting, which was held at the Knutsford Court Hotel.

Will carve out niche

The CEO noted that over the past five years, Mayberry's in-house pension fund has posted a return of almost 33 per cent.

According to FSC figures, Jamaica's private pension-fund industry comprises 520 supperannuation schemes valued at $132 billion.

Among the providers of management services, Life of Jamaica dominates with over $40 billion of pooled funds.

Other big players include NCB Insurance Company, Guardian Asset Management and Prime Pensions.

"Their decision is unsurprising since most financial companies will go into that field sooner or later," said an industry source, referring to the Mayberry decision.

"Just about every investment company used to take some form of pension funds, but because of the new Pensions Act they can't do that anymore without a licence. So, many of them have applied to the FSC for the licence."

"As to Mayberry's prospects, they'll probably get some funds from some of the more sophisticated trustees."

Rather than taking on the established competitors, Peart says that Mayberry will carve out its own nich for competitive reasons, he refused to divulge details.

"A number of trustees of pension funds have expressed some amount of dissatisfaction with some of my competitors for the historical returns on their funds."

The CEO said that a survey carried out by Mayberry indicated that there is room for more pension-fund managers.

"When we look at some of the pension funds outthere, their equity mix is quite low and we are looking at providing a little more in equities because, as you know, [pension-fund management] is long-term."

Still, Peart acknowledged that the market has its own particular demands compared to the regular portfolio management for which Mayberry is noted.

"The main difference is regulation - the regulators have [requirements] in place to ensure that the asset and value of these pension funds will remain in perpetuity."

For its financial year to December 31, 2006, Mayberry's interest income increased by 27 per cent, to $2.3 billion, while total operating income climbed by 42 per cent, to $692 million.

Net profit increased by almost 200 per cent, to $261 million.

ashford.meikle@gleanerjm.com