The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Bahamian investment bank yesterday acknowledged it was among COVID's beneficiaries as one of its investment funds grew by more than $100m due to the higher returns it offered.

Jim Wilson, RF Bank & Trust's vice-president of corporate finance, speaking during its Investor Week opening, said: “Like the banks, we are sitting on a lot of excess liquidity. The difference is we are paying a better return than what the banks are doing if you just leave it an inch in your deposit account.”

Recalling what happened when the pandemic first struck in mid-March 2020, Mr Wilson said: “We were actually quite surprised here in The Bahamas because, when we first started thinking strategy and what do we do, we were concerned that there might be a run on our funds. But, quite frankly, we found the opposite.

“We found that because people were stuck at home they had time to sit and look, and see that nothing was happening with their account. So we had a lot of people moving funds to us. So we actually benefited. We were one of the beneficiaries.”

While RF's pensions business has remained stable, persistent inflation is still putting pressure on investments. “I think we are going to see inflation for a while," Mr Wilson added. "Let’s face it. We import everything and,as much as we have price control on key things and food items, prices are still going up and they are in business. Food stores are still in business, too, they are not in charity, so they have to make money and be able to be there next year to keep supplying food.

“I think the interest rate hikes in the US, all that does in the end is the companies who are being affected by those high interest rates, they are going to pass that on to their clients and it will just be a continual cycle. So I think for inflation, hopefully we have enough of a cushion here, and we had a lot of revenge tourism in the past year or two as we came out of COVID. Hopefully we will sustain that for a little while.”

Investment in tourism-related projects remains strong with several properties slated for expansion or a construction start by the 2024 first quarter. “So I think there are opportunities for Bahamians to get involved to try and offset the effects of that inflation,” Mr Wilson said.