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Stanlib’s SIFT and Cash Trust outperform benchmarks

By
Belinda Ayamgha, GNA

Accra, June 30, GNA –
Stanlib Ghana Limited’s investment Funds have recorded significant growth for
the year ended December 31, 2016 with its assets growing to GH¢ 24.4 million
and 21.7 million cedis for the Cash Trust and Income Fund Trust.

Returns on both
funds also outperformed the benchmarks set for the year under review, as has
been the case since 2013.

Speaking to the GNA
after the Funds’ 6th Annual General Meetings, held in Accra on Friday, Mr
Emmanuel Alex Yaw Asiedu, Managing Director of Stanlib said the company was
happy with the results, as it had been able to sustain its growth over the
years.

“It is growth that you
can actually see, not the kind that you pick from elsewhere.

“It is solid growth
and we are happy with it,” he said.

The Stanlib Income
Fund Trust (SIFT)’S assets for the year under review grew by 43 per cent to GH¢
21.7 million, a feat, which Mr Asiedu attributed to a number of factors,
including buy-in into Stanlib’s success, good governance structure, brand
strength and investment team.

He noted that the
certainty associated with Stanlib’s investment products allowed people to move
their investments to Stanlib where there was clear return attribution.

Mr Asiedu said
Stanlib’s tactic was to do fundamental research to know, which direction the
general economy and interest rates would go so as to identify the appropriate
assets that would give the right yields.

He added that the
company would ensure that investors’ funds were safe, even if it did earn very
high returns in the immediate term.

The Stanlib Income
Fund recorded a net return of 26 per cent, against a benchmark of 23 per
cent. 

Investments in long
term instruments were increased in anticipation of interest rate declines, with
bonds making up 53 per cent of fund assets, 39 per cent in money market
instruments and eight per cent in cash and near-cash securities as at end 2016.

“SIFT, for the
fourth year running, outperformed its benchmark with full year returns of 26
per cent compared to a benchmark return of 23 per cent.

“This translated to
full year distributable earnings growth of 54 per cent to GH¢ 3.9 million,”
stated Mr George David Allotey, Fund Manager for SIFT.

He said the fund,
which was a medium to long term fund benchmarked at an average of a one or
two-year government of Ghana bond, was on course to achieve its objectives for
the current year.

While they did not
expect to be able to get yields like those recorded in 2016 due to decline in
interest rates, the fund was currently at around 22.4 per cent, he said.

Mr Allotey said the
Fund’s strategy, going forward, was to keenly monitor the yield curve to
achieve competitive returns for its clients.

Ms Brenda Kissi,
Fund Manager for the Stanlib Cash Trust sad the fund, in the year under review,
returned 25 per cent, 300 basis points (three percentage points) above the 22
per cent benchmark.

“Net investment
income distributed in the year also grew by 240 per cent to GH¢ 4.19 million in
2017 from GH¢ 1.7 million the previous year, but added that decline in interest
rates on the short end of the market impacted 
the returns of the Fund in 2016, compared to 26 per cent in 2015.

GNA

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