Investor Education

Frequently Asked Questions


  1. General Enquiries
  2. Stock Enquiries
  3. Unit Trust Enquiries
  4. Glossary
  5. BCP Summary
  6. Fatca & You
  7. Addendum Capital Growth Fund
  8. Addendum Money Market Fund

How do I open an account at Barita?

Individuals seeking to open an account will need to complete and sign a Client Agreement form (available online or at our offices) and provide us with a copy of their TRN#, a valid ID (driver’s license or passport), two (2) references, proof of address and the sum of money to be invested.

Do you accommodate salary deductions?

Yes we do, you can request that an agreed amount of your salary be deducted on a monthly basis through your Employer, and the cheque sent to Barita Investments Ltd or Barita Unit Trust Management Co. Ltd.

Can I access any application forms online?

Yes, you have access to all forms online. Click here to view forms.

I am interested in investing in the stock market, but I don’t know anything about it?

The Jamaica Stock Market is the link between companies needing capital and Jamaicans with money to invest. Before investing you should:

  • Seek professional advice
  • Understand the risk involved
  • Decide on the company/companies to invest in.

The minimum amount of shares you can purchase in a company is 100 units, and each share price is different. The return you receive on your investment depends on:

  • An upward movement in share price
  • A demand for that particular stock by other investors
  • The amount of dividends the company decides to pay out

What charges are associated with stock transactions?

Approximately 3% is deducted from the principal invested or received.

What do I need to open an Equity account?

Individuals seeking to open an account will need to complete and sign a Client Agreement form (available online or at our offices) and provide us with a copy of their TRN#, a valid ID (driver’s license or passport), two (2) references, proof of address and the sum of money to be invested.

What is a Unit Trust?

A Unit Trust is an investment vehicle, which enables small and large investors to pool their savings in a common fund, and enjoy the same high returns.

There are two funds available through Barita Unit Trust:

  • The Money Market Fund is made up of Government securities and is for the investor who prefers risk free investments.
  • The Capital Growth Fund is for investors who are willing to take some risk. Monies in this fund are invested in the stock market and in Government securities.

Are The Funds Safe? Can I lose my money?

Assets in the Funds are 100% insured by an independent Trustee; First Caribbean International Securities Limited, however the price of units can fluctuate.

How much money can I invest in The Unit Trust?

You will be buying units in the Fund. The minimum amount of units that can be purchased in each fund is 100 units.

What do I need to open a Unit Trust account?

Individuals seeking to open an account will need to complete and sign a Client Agreement form (available online or at our offices) and provide us with a copy of their TRN#, a valid ID (driver’s license or passport), two (2) references, proof of address and the sum of money to be invested.

Can I withdraw money from my Unit Trust account at anytime?

Yes you can. However, encashments for monies that have only been in the Fund for 45 days attract a 5% penalty while monies that have only been in the fund for 90 days attract a 3% penalty.

What is required when I am ready to encash my units from the Unit Trust?

You are required to submit a valid ID, sign a Transfer Form, and then the encashment process will be done.

Are the funds Tax–Free?

Yes, our Capital Growth Fund is Tax-Free, our Money Market Fund can earn tax-free status if it is held for 5 years, and only up to 75% of the interest earned is withdrawn every year.

What is the management fee for Barita Unit Trust?

The management fee for the Barita Money Market Fund is currently 3%, while the fee for the Barita Capital Growth Fund is 1.5%. These percentages are not deducted from your investment but are deducted from the pool of Funds when the money is being re-invested.

Annual Return

An investment's total return over the course of a year, which includes dividends or interest and capital gains or losses, but excludes commissions, other transaction costs and taxes. Average annual return is the arithmetic mean of multiple annual returns. Compound annual return is the annual rate at which an investment would need to compound to reach a cumulative figure.

Asset Allocation

An investment strategy that involves spreading assets among different types of securities such as stocks, bonds and money market instruments.

Automatic Investment Plan

Any program an investor sets up to allow the automatic accumulation or withdrawal of money through the regular purchase or sale of shares or units.


An appropriately weighted and adjusted arithmetic mean of specific securities, an average is designed to represent general trends or behavior of a complete market or individual segments of a market.


Also called a fixed-income security, a bond is an interest-bearing security that requires the issuer (borrower) to pay the bondholder (lender) a specified sum of money, usually at specific intervals, and to repay the principal amount at maturity. Bonds play an important role in your investment portfolio, as they provide a steady income and preserves your principal . Barita Investments Limited offers a diversified selection of Government of Jamaica (GOJ) and Bank of Jamaica (BOJ) securities.

Break Even

The level of a company's sales at which sales match costs and neither a profit nor a loss is made. Or a level in the market at which an existing holding will make neither a loss nor a gain.

Capital Gain

The difference between the price you paid for an asset and the price you sold it for, if you sold it for a profit.

Commercial Paper

Short-term debt obligations that have maturities of less than a year and are issued by banks, corporations and other borrowers. Although they are considered unsecured debt, they offer the relative safety of an instrument that is issued only by top rated concerns and is nearly always backed by bank lines of credit.

Company Registrar

In addition to retaining the cancelled certificates and instructions presented for transfer, the transfer agent is responsible for maintaining a current record of all the owners of the company's securities. When they are performing this additional role, they are acting in the capacity of company registrars.

Composite Index

A composite index measures all common stocks listed on a given Exchange and any subgroup indices - that are a part of this index. The index tracks the change in market value of the exchange's common stocks, adjusted to eliminate the effects of new listings and de-listings. The market value of each stock is calculated by multiplying its price per share by the number of shares listed. The composite index is a fairly good indicator of general market strength.


The effect of reinvesting an investment's earnings.

Consumer Price Index (CPI)

The Consumer Price Index (CPI) is considered the most widely used measure of inflation and is regarded as an indicator of the effectiveness of government policy.

The CPI is a basket of consumer goods (and services) tracked from month to month (excluding taxes). It is one of the most followed economic indicators and considered to be a big market mover. A rising CPI indicates inflation; a large increase is something financial markets don't like to hear. Inflation is the rate at which the general price for goods and services is rising, and subsequently our purchasing power is falling. As inflation rises this means that every dollar you own will buy a smaller percentage of a good or service.

Corporate Bonds

Debt instruments issued by private corporations to raise capital. A bond is issued at a par value of $1,000 with a set maturity date and is then traded on the secondary market.

Debt/Service Ratio

This is a country’s total debt obligations expressed as a percentage of its Gross Domestic Product (GDP). It measures how much of each dollar earned goes toward paying off the national debt.

Debentures - Fixed and Variable rate

This is another debt instrument issued by the GOJ. Interest rates are either Fixed or Variable. Debentures are purchased at face value and interest is usually paid semi-annually or quarterly. The minimum purchase accepted at Barita is J$100,000.


  • Superior Cash Flow
  • Regular Interest Payments
  • Attractive Rates of Return


The strategy of spreading investment risk by placing assets in different types of securities. You can also diversify by industry, geographic region, capitalization size and investing style.


A dividend is the distribution of a part of a company's earnings to its shareholders.

Dividend Yield

A stock’s dividend yield is its annual dividends per share divided by price per share. The dividend yield plus capital gains percentage equals total return. The dividend yield is an indication of the income generated by a share of stock.

Dollar Cost Averaging

The strategy of investing a set amount of money on a regular basis, such as monthly or quarterly. By dollar cost averaging, your investment dollars buy fewer shares when prices rise and more shares when prices decline. This can lower the average cost per share, but does not assure a profit or protect against loss in a market decline. Such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities. An investor should consider his/her financial ability to continue his/her purchases through periods of low price levels.

Earnings Per Share (EPS)

EPS = Earnings / Number of Shares in Issue
EPS is a key ratio used in share valuations. It shows how much of the company's profits, after tax, each shareholder owns.

Eurobonds or Globalbonds

Eurobonds are bonds issued and traded outside of the issuing country. These instruments are book value only, and are sold by our Central bank to the overseas market. Denominations are in USD and EURO Dollars. Currently, terms are from 2-years to 30-years. Interest is paid half-yearly or annually. Purchases can be made on your behalf through our overseas brokers. The minimum investment accepted by us is US$10,000.00.


  • Portfolio diversification- investments
  • No withholding tax

Fixed Income Securities

Fixed-income securities offer a relatively safe and predictable income flow. The amount of interest the issuer has agreed to pay is set at issuance and remains “fixed” until maturity. While fixed-income securities generally do not offer the potential high returns of other investments, the investor is usually spared most of the volatility common in other markets.

There are a number of fixed-income vehicles available, each one offering a range of credit ratings and maturities. Fixed-income securities provide the flexibility and liquidity needed to structure a portfolio tailored to the investor’s specific investment objectives. Fixed-income securities include bonds, debentures, money market instruments and even preferred shares,ro reflecting widely different borrowing needs as well as investor demands.

Gross Domestic Product (GDP)

Gross domestic product is the monetary value of all the goods and services produced by an economy over a specified period. It includes consumption, government purchases, investments, and exports minus imports.

This is perhaps the greatest indicator of the economic health of a country. It is usually measured yearly, although monthly statistics are also released. The nominal GDP (GDP Nominal) is unadjusted for inflation, and it gives a less realistic picture of a country’s economic health, than the real GDP, which is adjusted for inflation.

Gross Domestic Product (GDP) Per Capita

This is the total GDP divided by the number of people in the population. It is used as a measure of the average wealth of the nation and is useful for comparing the wealth of different countries, regardless of their population size.


To convert share certificates of stocks from paper form to electronic registered from by depositing them on an electronic securities depositary such as the Jamaica Central Securities Depository (JCSD). This is a requirement to be able to trade shares on the Jamaica Stock Exchange (JSE).

Issued Shares

Issued shares refer to the number of shares that are currently owned by investors. This includes restricted shares (shares owned by the company's officers and insiders) and shares held by the public. Shares that the company has repurchased are not considered outstanding stock.

This number is more important than the authorized shares or float because it is used in the calculation of many metrics including market capitalization and earnings per share (EPS).These shares are also known as "outstanding shares" or "issued and outstanding".

Jamaica Central Securities Depository (JCSD)

JCSD is the acronym for the Jamaica Central Securities Depositary.

Jamaica Stock Exchange (JSE)

JSE is the acronym for the Jamaica Stock Exchange.

Last Price

The last price refers to the last price at which a security traded at the most recent trading session.


The ease with which you can redeem an investment for cash or reinvestment.

Local Registered Stock (LRS) - Fixed & Variable Rate

Local Registered Stocks are medium to long-term government obligations. They are usually sold at face value and interest payments may be fixed or variable. The minimum bid accepted at Barita is J$100,000.


  • Low Risk: They offer low risk as fixed LRS’s allow you to calculate your predetermined earnings and enable you to plan for your money.
  • Excellent returns: They provide very attractive rates of return.
  • Flexibility: A LRS allows you to choose the tenure and interest rate that suits your needs.


The amount an investor deposits with a broker when borrowing from the broker to buy securities. Margins usually range from 50% to 80% of the security's price.

Market Capitalization

Market Capitalization is the total dollar value of all outstanding shares. It is calculated by multiplying the number of shares times the current market price. It is sometimes called market cap and is a measure of a company's size.

Money Market Mutual Funds

A mutual fund that invests in highly liquid, short-term corporate and government issues, such as commercial paper, bankers acceptances, securities and certificates of deposit. Although money market mutual funds are not government insured, their primary investment goal is preservation of principal through short-term instruments, making them very low risk investments.

Municipal Bond

A debt obligation of a state or local government entity. The funds may support general governmental needs or special projects. Most municipal bonds qualify as "public purpose bonds" which can make them exempt from federal, state and/or city taxes depending on the type of bond.

Mutual Funds

A fund operated by an investment company that pools the money of shareholders and invests in a portfolio of securities. These funds offer investors the advantages of professional management, diversification and liquidity. A management fee is charged for these services.

Net Asset Value

The market value of one mutual fund share. It is calculated by taking the value of the fund's holdings and dividing it by the number of shares outstanding.

Net Income

Net income is the company's total earnings, reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses. Net income is often referred to as "the bottom line" of a company.


The right, or option, to buy or sell a specific investment at a set price within a specified time period. If the right to buy or sell is not exercised by the specified period, the option expires and the option buyer forfeits the money. (Note: Not suitable for all investors.)

Ordinary Shares (also known as "common stock")

Any shares that are not preferred shares and do not have any predetermined dividend amounts. An ordinary share represents equity ownership in a company and entitles the owner to a vote in matters put before shareholders in proportion to their percentage ownership in the company.


A collection of investments, such as stocks, bonds and mutual funds.

Preference Shares (also known as "preferred stock")

A class of ownership in a corporation that has a higher claim on the assets and earnings than ordinary shares. Preference shares generally have a dividend that must be paid out before dividends to ordinary shareholders and the shares usually do not have voting rights.

Price Earnings Ratio (P/E ratio or P/E)

P/E = current share price of a company divided by its earnings per share.
A company's P/E (also known as its multiple) shows how high its shares are priced in relation to its historical earnings. Although mathematically, it relates share price to past performance, the reality is that P/Es are more about forward expectations than the past.


The amount of money you invest, excluding capital gains and reinvested dividends.


A legal document that represents a formal, written offer to sell a security. In the case of a mutual fund, the prospectus details the fund's investment policies and key financial data.

Repurchase Agreement (REPO)

A "Repo" agreement is a contract involving the sale of securities to the client (lender) from the borrower where the borrower commits to repurchase the securities on a specified date at a specified rate of interest. Barita Investments Limited offers Repurchase agreements with terms ranging from 30 days to 365 days as well as call investments at very competitive rates. The minimum investment accepted by us is J$50,000.00.


  • Safety - Guaranteed interest rate assures great returns.
  • Liquidity - You specify the length of the investment, which allows you the flexibility of withdrawing or re-investing funds on the maturity date.
  • Yield - Highly competitive yield guaranteed for the life of the agreement.
  • Rollover - All investments, principal plus interest can be immediately reinvested at the rollover rate to take advantage of COMPOUNDING INTEREST.
  • Control - Confirmations and advices are received quickly so that you can keep proper records of your investments.
  • Cost - No management fees
  • Assurance- Repos are an easy, widely used investment choice.


Represents the percentage of gain or loss on an investment.


Revenue means the dollar amount of annual sales, including discounts and returned merchandise. It is the "top line" figure from which costs are subtracted to determine net income. When evaluating stocks, revenue growth is often an indication of how healthy a company is.


The chance that the value of an investment could decline in the marketplace.


Reinvesting proceeds from a security that has matured into a new issue of the same or similar terms.


Stocks, bonds and other instruments that represent ownership interests in companies or obligations to investors.

Share Volume

Share volume refers to the number of shares or contracts traded in a security or an entire market during a given period.


Also called an equity security, a stock is issued by a public company and represents ownership in that company. Shareholders of common stock can vote on the company's major decisions and receive dividends as their share of profits. As a company's stock price rises or falls, so does the shareholder's investment.

Total Return

Representing the most complete measure of investment performance, it includes an investment's capital appreciation or depreciation as well as dividends or interest paid, after a fund's expenses have been deducted.

Trading Frequency

The trading frequency measures the trading activity on a particular security during a given period. Typically it gives a measure of how easily an asset can be converted to cash in the market. If there is a large number of buyers and sellers and trading activity, it will provide high liquidity for this stock. For example, a trading frequency of 95% suggests that over the time period under review, the stock traded in 95% of the trading sessions.

Transfer Agent

The primary function of the transfer agent is to control the issuance and cancellation of certificates of a particular corporation. This is done by using blank certificates designed by the company, which are maintained and controlled on the agent's premises.

Transfer Form

The general rule for transferring stock certificates out of a holder's name is: the certificate must be endorsed on the legal instruction form provided (called the transfer form) exactly as the owner's name appear on the face of the certificate. In cases where it is not possible for the registered owner(s) to perform this function, documentation must be provided by the owner of the certificate, which could authorize the acceptance of a signature by both the stockbroker and the transfer agent.


A transferor is the owner of the stock who is transferring his/her ownership of the securities. This might be because the person wishes to sell the securities or it might be in satisfaction of legal requirements such as in the case of estates.

Treasury Bills (T-Bills)

Treasury Bills are short-term Government obligations. They are sold by BOJ through an auction system with competitive and non-competitive bidders. The bid with the highest price gets allotted first. Treasury bills do not pay interest; instead, they are sold at a discount (below par) and mature at 100 (par). The difference between the purchase price and par at maturity represents the return to the investor.

Treasury bills are issued in a variety of maturities and denominations to meet the needs of varying groups of investors seeking income and liquidity in a single investment. Maturities range from 90 days to 365 days. The minimum bid accepted by us is J$50,000.00.


  • Security and Liquidity: T/Bills provide the highest degree of security and liquidity. As a direct obligation of the Jamaican Government, Treasury Bills are generally considered to be the most secure investment vehicle available.
  • Flexibility: T-Bills allow you to set a strategy for your investments, such as staggering your returns by buying bills with different maturities.


A fiduciary relationship in which a person, called a trustee, holds title to property for the benefit of another person, called a beneficiary. An agreement is drawn up to establish the trust, set out the provisions and delineate the powers of the trustee.

US$ Index Bond

US$ Index Bonds are purchased using Jamaican Dollars.* Principal and interest may be paid either in Jamaican or United States Dollars. At the time of purchase, the US$ value is noted, using the average of the last ten-day exchange rate for conversion. Upon maturity, the last ten-day average exchange rate is used for conversion, hence hedging against devaluation. The Minimum purchase is the Jamaican dollar equivalent of US$1,000.


  • The principal is protected against Jamaican Dollar depreciation. Since the principal is indexed to the exchange rate and adjusts with movements in the exchange rate (J$/US$), you are guaranteed that the value of your principal will keep in pace with the movement in the exchange rate.
  • The investment is safe. The exchange rate indexed bonds are direct obligations of the Jamaican government and are backed by the general revenues and assets of the country.
  • Interest is also protected from currency depreciation. Typically semi-annual interest payments are paid based on a fixed interest rate applied to a principal adjusted to current exchange rate.


The interest or dividend payable on a security, expressed as a percentage of the security's price.

The main objectives of our Business Continuity Plan are to:

  • Identify arrangements and procedures that will enable the company to respond effectively to a SBD (Significant Business Disruption) and ensure continuous performance of our critical business functions.
  • Identify Barita's Mission Critical Systems and the back-up and recovery that exist for each.
  • Identify the normal mode of communication with stakeholders and alternate method(s) that will be utilized in case of a Significant Business Disruption (SBD) that affects the use of the normal method.
  • Identify specific procedures which will be used to ensure that clients will be able to access their funds and documents as required.
  • Identify Barita's emergency contact team and their respective duties.

The ability to decide when to activate and execute the BCP is entrusted in duly authorized senior personnel.

As a result of the vast number of possible SBD and the likely potential impact, we are unable to indicate any specific timelines with regards to returning to the normal mode of operation. However, we are committed to trying to minimize the impact on our clients, business partners and staff as a result of any SBD.

This BCP is subject to change and is revised on an ongoing basis. If you have any questions or suggestions please do not hesitate to contact our customer service department.



The United States Government (US) administration enacted the US Foreign Account Tax Compliance Act (FATCA) in March 2010, as part of the Hiring Incentive to Restore Employment (HIRE) Act. As a signatory to FATCA, Barita Investments Limited (as well as all other Jamaican financial institutions), will be required to disclose and report certain information on US Account holders or US owned foreign entities to the Internal Revenue Service (IRS) effective July 01, 2014.

What is FATCA?
The Foreign Account Tax Compliance Act (FATCA) is a US tax law that is designed to prevent tax evasion and improve the tax compliance of US taxpayers who earn income from investing in offshore investment vehicles and Foreign Financial Institutions (FFIs).

How will FATCA work?
Financial houses outside the US are classified as FFIs. FATCA will require all FFIs to enter into a disclosure agreement with the United States Internal Revenue Service (IRS). In signing the agreement, FFIs agree to:

  • Use new account opening procedures to determine if the account holder is a US person.
  • Identify existing accounts owned by US taxpayers, and report on 'certain information' about account holders with US $50,000, or its equivalent and above to the IRS, on an annual basis.

What does 'Certain Information' include?
Certain Information includes the following, and is to be made on 'Specified US Persons/Entity':

  • Name
  • Mailing address
  • US Taxpayer Identification Number (TIN)
  • Account value
  • Income for the year

Who is classified as a 'Specified US Person/Entity' or person with US indicia?
According to FATCA, a specified U.S. person/entity or the indicia of a U.S. status includes:

  • A citizen of the U.S. (including a person born in the U.S., but resides in another country)
  • U.S. lawful permanent resident status (including U.S. green card holders)
  • A person residing in the U.S. for 183 days or more
  • Entities formed under U.S. laws, excepting whose stocks regularly trades
  • Entities with 10% U.S. beneficial ownership
  • A person with a U.S. address and telephone number on file (including US P.O box)
  • Standing instructions on file to transfer funds to account maintained in the U.S.
  • An "in care of" address or a "hold mail" address that is the sole address with respect to the client
  • Power of attorney or signatory authority granted to persons with U.S. addresses
  • Non resident aliens who meet the substantial presence test.

N.B. Accounts held jointly with U.S. persons will also be treated as a U.S. account, and is therefore subject to reporting.

How will this impact you?

  • Accounts identified as having ownership by a 'Specified U.S. Person/Entity' will be reported to the IRS.
  • 'Specified U.S. Person/Entity' is asked to sign an IRS W-9 form (see to receive exemption from backup withholding taxes of 30%.
  • Non-U.S. person/entity is asked to sign a W-8 BEN form (see to receive exemption from backup withholding taxes of 30%.
  • Withholding tax of 30% on U.S. source income will be applied to the accounts of 'Specified U.S. Persons/Entity' deemed as "recalcitrant".

Who are "recalcitrant" account holders?

  • Someone who fails to provide information required to determine if their account is a U.S. account.
  • FFI's who fail to enter into agreement with the IRS.

What does U.S. source income include?

  • Interest, dividends, rent, royalties, salaries, wages, annuities, gains and profits.
  • Gross proceeds from the sale of U.S. property that can produce interest or dividends.
  • Interest paid by foreign branches of U.S. Banks.

Does FATCA comply with privacy laws and what are the consequences for non-compliance?
The Jamaican government entered into an Inter-governmental Agreement (IGA) with the United States Government effective May 1, 2014, which has made the necessary legislative changes that will ensure that these disclosures do not breach Jamaican law.

However, we may seek to obtain your waiver and ask that you acquiesce with this request, as FATCA has mandated that financial institutions are required to treat uncooperative account holders (including joint holders) as recalcitrant and either close the account or withhold 30% on all pass through payments and gross proceeds from the sale or disposition of U.S. assets which can produce interest or dividends.

Barita values the relationship of trust we have with our clients, and will continue to respect our client's privacy in accordance with the company's privacy policy, and safeguard personal information provided in compliance with the relevant data protection legislation for the country in which such data is being processed.

Please note that FATCA became effective July 01, 2014. For more information on the implications of FATCA, please visit the IRS website at

For more information on FATCA, please speak to a Barita Client Services Representative at:
Toll Free: 1-888-429-5333 or E-mail us at: This email address is being protected from spambots. You need JavaScript enabled to view it.



1. Preliminary Charge

The Managers reserve the right to receive Preliminary Charge not exceeding 8% on the Issue price of Capital Growth units. Currently there is a suspension of preliminary charge.

However, the manager will apply a penalty of 4% of amounts redeemed, if redemptions are done before the minimum holding period of 90 days.

2.  Management Fees

The appropriate percentage (of the Deposited Property) is as follows:

• 3% on the value of the Deposited Property of the Jamaican Dollars equivalent of the first Fifty Million United States Dollars (U$50,000,000).
• 2.5% on the value of the Deposited Property of any amount above the Jamaican Dollars equivalent of Fifty Million United States Dollars (U$50,000,000).


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1.Management Fees

The appropriate percentage (of the Deposited Property) is as follows:

3% on the value of the Deposited Property of the Jamaican Dollars equivalent of the first Fifty Million United States Dollars (U$50,000,000).

• 2.5% on the value of the Deposited Property of any amount above the Jamaican Dollars equivalent of Fifty Million United States Dollars (U$50,000,000).
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