FirstbanC’s funds deliver good results
The two mutual funds of FirstbanC Financial services, First Fund and Heritage Fund recorded significant growth for the financial year ending December 31, 2015.
The First Fund, an open-ended money market fund which invests in money-market instruments, closed the year with an annualised yield of 37.86 per cent ahead of 91-day and 182- day treasury bills which closed the year at 22.9 per cent and 24.45 per cent respectively.
The fund’s Asset under Management (AUM) almost doubled in 2015, surging by 94 per cent from GH¢22.8 million in 2014 to GH¢44.75million on account of an impressive return on investment by the fund’s portfolio and the incessant contributions by both existing and new ones.
At the Annual General Meeting (AGM) of the two funds, the Chief Investment Officer of the fund, Mr Samuel Annie Asiedu, said the number of shareholders also increased by 17.81 per cent from 9,391 in January 2015 to 11,064 at the end of December 2015.
Heritage Fund
The Heritage Fund, an open ended equity mutual fund made a return of 4.23 per cent at end of 2015 in spite of the abysmal performance of the stock market in the year under review.
The fund price witnessed a lot of volatility throughout the year with the price moving upward from GH¢0.39 hitting an all-year high of GH¢0.44 and then falling to GH¢0.41 at the end of 2015, representing a year to date appreciation of five per cent.
The FirstBanC heritage Fund’s total assets under management (AUM) grew by 6.32 per cent from GH¢1.4 million in December 31, 2014 to GH¢1.5million as at December 31, 2015.
The increase in the fund’s AUM was mainly due to capital appreciation on equities held in the portfolio during the period.
Outlook
Mr Asiedu said First Fund was poised to perform even better in 2016 considering rates for treasury instruments.
“The fund manager remains committed to ensuring superior returns and capital preservation and will continue to invest in secured high yielding instruments in the bid to obtain its objective and retain the fund’s award as the best performing money market mutual fund in 2016 and beyond,” he said.
He also appealed to Pension Scheme Trustees and other fund managers to consider investing in the First Fund as it was well managed and generated high returns for investors, adding that workers could also invest in the fund to serve as an income supplement for the future.
On the Heritage Fund, he said it remained committed to ensuring solid growth and long-term value in 2016.
“We will continue to invest in high value equities, while paying attention to those that return regular dividends to the fund. We expect an improved performance of the Ghana Stock market as the money market returns fall and clients move funds to the capital market during the year,” he said.
Mr Asiedu used the occasion to appeal to pension funds trustees and managers, students and workers to invest in the heritage fund for their future retirement support and other long-term projects.