Sterling Asset Management 20th Anniversary 2001-2021

When we looked at the investment market 20 years ago, there was, in our view, a gap. There was hardly any opportunity for folks to make sound investments for the medium to long term. It may seem like a distant memory now, but at that time, Jamaican dollar interest rates were very high and people were focused on short term investments such as the repo. However, inaddition tohigh-interest rates, there was also high inflation, so the REAL return on investments was very low. With most investors focused on Jamaican dollar repos and other short term investments, there were relatively few options for people who wanted to invest with a 10, 15 or 20-year horizon, say for their retirement. Why we started: Sterling’s Story through the eyes of its Founder & CEO 2001: Jamaicans were still wary and suffering from the 1990’s financial crisis The high interest rates offered on short term Jamaican dollar investments disguised the loss of purchasing power investors were experiencing through inflation and devaluation: In 1972, JM$1 million could buy US$1.3 million. In 2002, JM$1 million could only buy US$20,000. FINANCIAL CRISIS: 1. Several Financial Institutions disappeared. 2. Government bailed out most banks and insurance companies 3. Many local companies defaulted on their loans 47.40 JM $ / US$ 14.5 % JM$ 30 day rate 8.5 % Inflation (2.02) % 2000 economic growth (Source: IMF) Most popular investment product among Jamaicans Repos Most common currency of investments JM US$ Value of JM$ 1 million over time JAN 72 JAN 82 JAN 92 JAN 02 US$1,299,000 US$562,000 US$45,000 US$20,000 Effects of inflation on your JM$ savings 2001 2020 JM$ 209,500 Ending value in 2020 JM$ 1,000,000 Starting value in 2001