Financial experts at the 21st Jamaica Stock Exchange Investments and Capital Markets Conference have identified a significant structural challenge facing the nation’s capital markets: an entrenched buy-and-hold investment culture that is severely constraining secondary market activity.
Sarah Cummings, Director of Corporate Solutions and Investment Banking at Scotia Investments Jamaica, highlighted the dominance of institutional investors, pension funds, and collective investment schemes that typically acquire securities with minimal subsequent trading. “Having a buy-and-hold culture suppresses secondary trading,” Cummings stated, noting this pattern creates liquidity shortages that deter broader investor participation and complicate capital raising efforts for companies.
The conference revealed this phenomenon extends beyond Jamaica throughout the Caribbean region. Christopher Buchanan, Senior Vice-President of Investment Banking at NCB Capital Markets, observed investment managers demonstrate reluctance to divest long-held securities, often citing limited attractive alternatives. This mentality raises fundamental questions about whether Caribbean markets offer sufficient investable assets to enable portfolio repositioning.
Proven Wealth President and CEO Luwanna Williams proposed solutions focused on restructuring existing offerings rather than introducing entirely new financial instruments. Her recommendations include reducing minimum subscription thresholds to enhance retail accessibility, creating multiple tranches of offerings to widen inclusion, and implementing comprehensive investor education initiatives.
Williams identified significant knowledge gaps as particularly problematic regarding sustainable investment vehicles like green and blue bonds. Despite their potential to attract capital for climate-resilient development, these instruments suffer from limited understanding among investors. Williams cited a telling case where a German renewable energy company abandoned Caribbean fundraising efforts after securing just $11 million of a $20 million target, subsequently raising approximately $100 million through Norway’s Oslo Stock Exchange.
“This was a very attractive investment in terms of yield. It was steady in terms of cash flows, and the issuer was well known internationally,” Williams noted. “So what was the problem?” She attributed the failure to persistent misconceptions that sustainable investments deliver inferior returns or prove too complex for average investors.
Both executives emphasized that deeper regional integration could address liquidity challenges. Buchanan advocated for increased cross-listings to build brand recognition, access wider investor bases, and improve capital raising capabilities. However, conservatism and uneven regulatory frameworks across Caribbean exchanges continue to hinder progress despite ongoing discussions among market operators.
Williams concluded that overcoming these barriers requires coordinated efforts to demystify investment processes and opportunities, particularly for retail participants who often prefer familiar banking products over equity investments due to comprehension gaps and risk aversion.









