GOVERNOR of the Eastern Caribbean Central Bank, Timothy Antoine, urges the people of the Eastern Caribbean Currency Union (ECCU) to understand the importance of wealth creation and investment.
Speaking virtually at the launch of Unit Trust Corporation Global Balanced Fund Ltd (UTCGBFL)'s first retail mutual fund in St. Lucia on Thursday, Antoine said that in the United States nearly three in five people or 60 percent are invested in US stocks. market, which is a source of income and wealth for its citizens and residents.
The Governor contrasted that with the ECCU, where only one in 25 people or four percent are invested in the Eastern Caribbean Stock Exchange.
Antoine said he proposes to increase that number to one in five people over the next decade.
The Governor welcomed the UTCGBFL as he said that ECCU citizens will have the opportunity to access international markets.
โThe minimum investment is US$100 or EC$270 from a financial inclusion perspective, this is important as it means that almost everyone and anyone has the opportunity to invest in international financial markets. The launch of this fund takes advantage of the strong savings culture in our monetary union. As we speak, we have about EC$25 billion in our deposits, in the monetary union. It offers an affordable way for our people to go from being mere savers to being financial investors,โ revealed Antoine.
He indicated that in recent times, the ECCB has observed that some people are looking for risky investment options in cryptos.
โI hope these people consider the mutual fund as a safer option for their hard-earned money,โ lamented the governor.
In addition, he noted that wealth creation is essential to building financial resilience, as it strengthens one's ability to weather financial shocks and storms.
โWhat will it take to double your net worth over the next decade?โ Antoine said.
Treasury Department Director of Finance Imran Williams delivered an address on behalf of St. Lucia Prime Minister Phillip J. Pierre, praising UTC's dedication and vision in its efforts to promote broad participation in the markets finances at the regional level.
โThis means that in addition to investing in traditional government bonds and Treasury bills, notes, etc., the product allows people to diversify their investment portfolio while earning returns that can supplement their income,โ Williams acknowledged.
He also observed that โthis speaks to equity, diversity, and inclusion: equity for people from all walks of life, diversity of people from all income categories, and inclusion of people who would otherwise have been displaced by high upfront costs.โ and minimal investments. .โ
Williams noted that the Organization of Eastern Caribbean States Commission is in the process of completing the financial literacy and inclusion survey.
โIt would be quite instructive as you will see what each of the data for each of the ECCU members looks like in terms of financial inclusion and you will get a better idea of โโthe demographics, also how to target your marketing strategy,โ he explained. .
Williams noted that the investment license is being sold by St Lucia's First Citizens Investment Ltd and Bank of St Lucia Ltd, who have been involved in the brokerage service for decades.
โThis is not a scheme in any way, shape, or form. These are renowned people and institutions that stand out for providing this service,โ mentioned the finance director of the treasury department.
He noted that Prime Minister Pierre also sees the launch of the mutual fund as a way to increase employment and further develop the ECCU.
UTCGBFL, a wholly owned subsidiary of Unit Trust Corporation, is an investment company incorporated in Saint Lucia to operate as a Collective Investment Scheme (CIS) in the Eastern Caribbean Currency Union.
Dr. Didacus Jules, Director General of the OECS, said that in the current climate of volatility and uncertainty many things can no longer be taken for granted.
โAs small island developing States, the OECS countries are among the most affected, we are virtual spectators and often victims of trends and developments that are global in scale but have devastating local impact. On the financial front, this vulnerability is illustrated by the flight of international banks in the region and the loss of the corresponding banking services. The growing difficulty in accessing financial services and the growing financial exclusionsโ, Jules stressed.
He pointed out that these developments not only affect the commercial sector but are also felt by ordinary citizens and especially venerable sectors such as retirees, businessmen and workers.
โThe Eastern Caribbean Economic Union can only make sense and succeed if it creates that space for increased financial inclusion, provides options and opportunities for Union citizens to save and invest, and creates a culture of ownership that ensures financial security and economic well-being of the average household,โ Jules said.
The director general of the OECS Organization said the mutual fund allows investors to pool their money and invest in a mixed portfolio of assets, helping to manage risk and ensure better long-term growth.
โWe hope that all this will lead to more accessible instruments in the Eastern Caribbean Capital Market that can help drive more capital for local companies to support economic growth, job creation and infrastructure development in the OECS,โ he added. Jules.
