Smart Moves

When Safiya Burton, Marketing Manager of Grace Kennedy Capital Services Limited, was called upon by her CEO, Douglas Orane, to give an overview of the Grace Caribbean Fixed Income Fund at the Trinidad Hilton recently, she did not disappoint.

When the 26 year-old took the floor, she was articulate and spoke as though she was a veteran of the Jamaican-based company that has spread its tentacles throughout the region. Her analysis and presentation were flawless. “I have surrounded myself with people who are as good as me or even better,” Orane said, when asked about his young recruits at the launch of the fund. The fund was launched last October in the Cayman Island and TT is Grace’s second market for the fund. Burton said Grace was looking at putting the fund in other markets, including Belize, Bahamas and Turks and Caicos. She explained that Grace chose TT as its second market for the fund because it is one of the bigger economies in the Caribbean. “Its one of the economies that Jamaica has always had a close relationship,” she said, adding, our Trinidadian partners told us that even though there is a plethora of funds and unit trusts available locally, there is a need to diversify.” Additionally, she said, people want higher yielding instruments, and that investors put their money in companies that they trust and have an established track record. Although a novice in the financial sector — this is already her third job — Burton brings to her position a wealth of international experience. She started off her career as a broker with Merril Lynch Investment Managers in Miami. She was later transferred to the cmpany’s Los Angeles office, where she worked on the company’s portfolio management team for their domestic fixed income and international equities portfolio and mutual funds.

Having worked there for two and a half years, Burton decided to move to Mellon Financial, which is the parent company of Dreyfus Funds where she spent another two and a half years.
Even though she was born in Alabama, she was raised in Jamaica and studied at Florida International University and the Association for Investment Management and Res-earch. Having the opportunity to work with two prestigious international investment organisations, she decided to return to Jamaica and pursue a career in the Caribbean. “I was doing very well in my other jobs. I got promotions and responsibilities, but there was always something that was missing,” she said. “ I guess that there was some kind of magnet pulling me back to the Caribbean.” Burton said she always wanted to return to Jamaica, but noted that the timing had to be right. “I had reached a point in my career where I was at a crossroad and I had to make a decision whether to stay in the United States or return to my homeland. I decided to go home and so far it has been quite good and I get the best of both worlds.” With her diverese financial background, Burton was able to fit in at Grace Kennedy’s Financial Division with ease.

She was no stranger to the company and its policies. Her father served the company for 33 years in the Food Trading Division. Burton said she always had the opportunity to intern with Grace during her time away from school. “I have been exposed to Grace Kennedy from a very young age and I believe that their cultural values are more in line with what I was looking for,” she said in an interview at Hilton later. She notes that while the compensation packages and benefits are great at other companies, “there is a certain level of trust and integrity at Grace, which attracted me.” Burton’s role at Grace is really to bring the company’s first US dollar denominated mutual fund — Caribbean Fixed Income, to the people of the Caribbean. She noted that the fund is a fixed income fund and so primarily their core investments are sovereign debts issued by Caribbean governments and rated by international rating agencies. Grace currently invest in bonds issued by Grenada, Barbados, Trinidad, Belize and the Dominican Republic.

Burton said the fund has been performing well and above expectations. She said their target yield is 7.5 to eight percent. “Even though the fund is just a few months old, we have managed to achieve an annualised yield of 7.2 percent as of June 30, 2003.” The fund started with a net asset value of US $10 and now stands at US $10.42. Burton said the only market they have been in so far is the Cayman Islands. There, they have managed to draw interest of US $7 million. She hopes that TT will significantly add to that figure even though she is aware that this country is a magnet for regional investors. She says she has been doing significant research on the funds available in TT, especially the US dollar denominated ones. Her research revealed that Grace funds actually yield more that those being offered in TT. She boasted that their yields are actually about 100 or 200 basis points higher than those being offered on the TT market. “Investors want higher yielding instruments, so this is an excellent option for them,” she said in a refined Jamaican lilt. Burton dismissed the notion that Grace Kennedy is just a food and beverage company and has a diverse portfolio. The company, she said, actually has five different divisions which have been around for quite a number of years.

Grace Kennedy now comprises a Maritime Division, Food Trading, Financial Services, Information Services and Retail Trading. In the food division, the company had 50 new products alone. “One of our goals at Grace Kennedy is to take the hassle out of the lives of the Caribbean people and all our services are in response to customers needs,” Burton says. The jewel of the company is its financial services division. Burton said she has never considered her age to be a factor in anything she does. “I consider myself to have fresh ideas and I think that my international exposure helps to bring this fund into focus. I do not think about my age, even though I have lots of responsibilities.” In fact, as the fund and the assets under management increases, Burton said she would like to take on some more under her belt. “Where that is going to lead to I am not certain, but I am interested in contributing in whatever way I can to the region.” “I am trying in my own way to make a difference and at the same time I am also very fulfilled because it is much different from working in the US. The quality of life in the Caribbean is much higher.” She was quick to point out that she was not referring to the money and material things. “I am talking about the culture, art and music among other things, that makes a lot of difference for me and the people here are just really good. You can be yourself here.”