Scotia Investments

Frequently Asked Questions

Scotia Investments Management Team
CIF Frequently Asked Questions
What is the Caribbean Income Fund?
  • The Caribbean Income Fund is a United States Dollar (USD) denominated Mutual Fund
  • The Fund primarily invests in debt instruments issued by countries and corporations in the Caribbean and Latin America.
  • The Fund’s objective is to provide a regular stream of tax advantaged income and provide some potential for capital gains.
  • Scotia Investments Jamaica Limited, a member of the Scotia Group, is the professional Fund Manager responsible for managing the portfolio.
How is the Fund valued?
  • The Fund Manager calculates the total value of all the assets that are in the pool of funds daily, using the prevailing market prices of the debt instruments at 4 p.m. Eastern Standard Time.
  • This total asset value is divided by the number of shares outstanding in the Fund to arrive at the Net Asset Value Per Share (NAVPS).
  • The NAVPS is posted each day on the web and information is also available at our offices.
How do I start investing in the Fund?
  • The minimum initial investment amount is US$5,000.
  • Additional share purchases are subject to a minimum of US$1,000.
  • For investors who establish a Pre-Authorized Contribution (PAC) Plan, the minimum initial investment is US$1,000 with minimum monthly payments of US$100.
  • Shares may be purchased directly from Scotia Investments, through any one of the Scotia Investments branches or satellite offices within a Scotiabank branch.
  • After purchasing shares, you will receive a written confirmation of your shares in the Fund.
How do I earn from the Fund?
  • The Fund Manager, Scotia Investments, is responsible for making smart investment choices to help to maximize the return of the Fund.
  • One of the objectives of the Fund is to provide a regular stream of income for its investors.
  • The Fund intends to distribute its income in the form of dividends by the last business day of each quarter.
  • Dividends will be automatically reinvested in additional shares of the Fund, unless the shareholder indicates a preference for cash distributions.
  • The Fund also aims to provide modest capital gains for investors.
  • Changes to the market values of the securities owned by the Fund will be reflected in the NAVPS, which may therefore increase or decrease.
  • You can experience gains when the value of your shares increases over what you initially paid for it.
  • There is no guarantee that the share price at the time you may choose to redeem your investment will be the same as, or higher than the share price when you purchased them.
  • Scotia Investments' Investment Advisors are equipped to provide you with your personal rate of return at any time.
  • Although we cannot give a guaranteed yield on the Fund, you can be assured that the Fund Manager’s goal is to ensure that you are provided with the optimum return on your investment.
  • It is recommended that you have a medium term outlook when investing in bond funds.
  • Read more on how you can profit from pooled funds in our Investor Education Centre.
How can I get back my money from the Fund?
  • You may redeem shares in the Fund after 90 days without a redemption fee.
  • If shares are redeemed within 90 days of purchase, they will be subject to an early redemption fee of 2% of the redemption amount.
  • Each investment amount has its own 90 day tenure.
  • Partial redemptions are permitted provided that a minimum balance of US$5,000 is always maintained.
  • Shares can be sold at any time during business hours (8:30 a.m. – 4:00 p.m.) at the prevailing share price on the relevant business day.
  • You will need to complete a redemption request to start the process.
  • The prospectus states that the Fund Manager may issue a redemption cheque to customers within 7 business days. However, Scotia Investments aims to pay out requests within 3 business days.
What are the benefits of investing in the Caribbean Income Fund?
  • All investors, whether small or large, earn the same rate of return.
  • The Fund hedges against inflation and currency devaluation as it is invested in USD debt instruments
  • Your investment is spread over a diversified portfolio of fixed income instruments, which helps to manage overall risk
  • Quarterly distributions offer substantial tax savings versus other investments (i.e. REPO's).
  • Your investment is managed by skilled professionals who are experts on the Caribbean fixed income market.
  • The Fund Manager, Scotia Investments, is a member of the Scotia Group.
How can I know if the Caribbean Income Fund is suitable for me?
    If you...
  • are interested in earning USD income
  • are investing for the medium term
  • wish to have a diversified portfolio of USD fixed income instruments
  • can accept medium levels of risk
  • have a portfolio that indicates an “income” classification
…then the Caribbean Income Fund may be right for you!

Give us a call, or come in and speak with one of our Relationship Officers and see for yourself how we earn the right to be your most trusted financial advisor.

Important information about the Scotia Caribbean Income Fund is contained in the Funds’ prospectus. Copies are available from Scotia Investments Jamaica Limited and Scotiabank Trinidad & Tobago Limited or your Investment Advisor and should be read carefully before investing. Share values and investment returns for the Funds will fluctuate. Past performance is not indicative of future performance. Investments in the Scotia Caribbean Income Fund are not insured by Jamaica Deposit Insurance Corporation (JDIC) and are not guaranteed by The Bank of Nova Scotia or its affiliates. Please be advised that the Scotia Caribbean Income Fund is NOT available for distribution in the Cayman Islands. Asset allocation and holdings data excludes cash. Should you have any questions, please contact your local Investment Advisor.