The coupon rate is the bond’s stated interest rate when it is issued. This is the rate the issuer promises to pay the bondholder each year to use the money until maturity. On the other hand, a bond’s yield is its effective rate of return based on the purchase price of the bond. If purchased at par, then the yield will effectively match the coupon. However, when purchased after the bond has been issued and commences trading, the yield may differ from the coupon as price moves up or down. It is important to note that the yield and the price have an inverse relationship. If price goes up then yield goes down and vice versa.

The payment frequency can usually be found in the terms and conditions provided in the prospectus. While most bonds tend to pay coupons semi-annually, some also pay quarterly. It is important to review these details before investing to ensure the payment dates align with your goals.

This investment option has a maturity date and the terms and conditions of the agreement are upheld through to maturity. However, if you need to access your principal prior to maturity, FHC will facilitate a sale of the security. This will be subject to market conditions.

Fixed Income investments incur withholding tax. Each instrument will detail the tax structure and we recommend that you discuss further with your accountant as application of taxes may vary.


Companies sell shares in their business to raise money. Once a company’s stock is available on the market, it can be bought and sold among investors. There are two ways to profit from trading stocks – capital appreciation and income from dividends. Capital appreciation occurs when you sell a stock for more than the purchase price while dividends are earned when a company agrees to share the profits it earns with its investors.

There are two main types of shares known as ordinary and preference shares. Preference shares are hybrid securities with both equity and fixed income characteristics and therefore carries a “maturity date”.

The financial solution for you will be highly dependent on your needs and your risk appetite. Investing in stocks is generally a long term commitment and throughout the period, the stock prices can trend upwards or downwards. This will result in the value of your investment increasing or decreasing. As a result, investors should understand the various risks and determine their comfort levels to determine suitability.

Trading stocks can be risky. However, an investor should aim to buy stocks that are undervalued, so that when the market recognizes its value and starts to push the price higher, you are at an advantage. A key strategy to use is diversification – do not put all your eggs in one basket! We recommend you discuss with a licensed investment advisor before making a decision.


Yes, you may transfer your pension savings from one fund to another.

The normal retirement age in Jamaica is 65 years old, however a person may retire early once they attain the age of 55.

Yes. Your employer can contribute on your behalf up to a maximum of 10% of your taxable income per annum.

FHC’s Pension Gold is approved under the Income Tax Act and Pensions Act which means that your contributions to your pension do not incur income tax.

Now. The earlier you start, the more likely you are to generate a healthy pension at retirement.