CDH Balanced Fund sees stronger growth in 2017

Accra, July 3, GNA
-The CDH Balanced Fund says it is poised for an even stronger performance in
2017, following the impressive return recorded in 2016.

The Fund recorded a
return of 32.96 per cent compared with an annualised return of 30.68 per cent
in 2015, outperforming the benchmark Treasury bill, the Ghana Stock Exchange
indices, other investment vehicles and delivered returns over the rate of

Funds under management
grew by 73 per cent during the period to GH¢1.90 million from GH¢1.09 due to a
very impressive marketing and outreach effort by the Fund managers.

Mr Emmanuel
Adu-Sarkodee, Chairman of CDH Balanced Fund, said the strategy of the Board
remained focused on growing the Fund in 2017.

“We will continue to
build an investment portfolio that is structured to ensure financial stability
for the medium to long term for shareholders,” he said at the Annual General
Meeting of the Fund.

Mr Adu-Sarkodee said
the management of the Fund was committed to moderate to low risk instruments
that deliver good returns in the medium term.

He said in the face of
declining interest on fixed income securities, the Fund would adopt sound
research to see the mix that would deliver the best results for the

The CDH Balanced Fund,
in line with its strategy, held fixed income instruments consisting 98 per cent
of the total funds under management in 2016. Investments in equities accounted
for less than two per cent of funds.

He said the decisions
of the Fund were backed by comprehensive research and the look at the
mitigation measures from the research would determine the balance to use in the
best interest of the shareholders.

Mr Seth Aryitey,
Executive Director, CDH Asset Management Limited, said the Fund expected to
post another impressive returns for shareholders in 2017 as the stock market
recovers from two years of decline in value in line with a more stable
macro-economic position and the anticipated recovery in the country’s growth

“We will therefore
seek to diversify into more equities, focusing on picking up bargain buys that
pay good dividends and are expected to post significant capital gains. The
progress towards a more balanced fund with a well constituted portfolio will
continue to be the focus of the Fund Manager,” he said.

Mr Aryitey said the
Fund would continue to grow the number of shareholders across the country and
encouraged shareholders to invest more to enjoy high returns.   

The directors of the
Fund waived their fees in order to reduce the cost of running the Fund.


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