David Wan - LEIGHTON WILLIAMS
DAVID WAN HAS made some interesting observations about the local investment market since returning to Jamaica from the United States in the early 1990s.
His observations are based on his experience with the local market while being General Manager of the Victoria Mutual Wealth Management located in New Kingston.
Wan, who entered the world of investments because of an interest he had in how markets operated, said his interest in investments has led him to observe several trends such as the fact that local investors are more conservative.
"I think they are more conservative because of the whole Finsac experience. Also, because interest rates were high, people who invest were still able to make some returns," he said.
That aside, he said that although there was an increase in interest in the stock market, more public education campaigns were needed as many Jamaican's did not understand the operation of the stock market.
WHEN TO BUY
"Many investors buy at the wrong time. Most buy when the market is going up when they should buy when the market is declining," he said.
"Although the stock market has got more visibility, a lot of people still do not appreciate that it moves up and down. So they will not buy when it is going down although if a business person were to offer a car discount they would buy it. But, people won't buy a stock when it is falling, which is when they should buy."
That aside, he hopes that the local investment market will expand soon to present more investment options apart from those that currently exist.
"Jamaica has four ways to invest money. If you have money to invest here, the options you have are real estate, the foreign exchange market, stock market and Government securities. In the United States there are many more ways to invest money. You have futures, scores of mutual funds and scores of other investments," he said.
Wan believes that a reason for this type of situation is poorly devised Government policies which can be a disappointment for investors who will not be able to reap rewards on investments if the market changed.
Nevertheless, Wan said it is even tougher on the investment managers who have to face investors with the bad news that they cannot benefit from an increased interest rate.
"If there is devaluation and the Government hikes interest rates you can't tell customers to break a CD (Certificate of Deposit) he has and convert to United States dollars. If the interest rate goes up it is difficult to tell someone who has been saving for a year that he will not be getting the new rates," he said.
All the observations aside, Wan explained that he enjoys his job and there is nothing more satisfying than seeing a customer reach his or her financial goals. Added to that, he said more people were understanding the stock market which was a good trend.
He said another area his company planned to exploit soon was the pension funds and more mutual funds in the upcoming months. He added that although the Jamaican market was small, more could be done to expand on the number of investment choices.
Outside of being an investment manager, the St. George's past student enjoys reading history, exercising and playing racquet ball which is a version of squash which is not played regularly in Jamaica.
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