The two funds of STANLIB Ghana Limited, Stanlib Income Fund Trust (SIFT), and the Cash Trust Fund (SCT) have both outperformed its benchmark in 2017.
SIFT, which is an open-ended unit trust fund, churned out solid returns in 2017 yielding 22 per cent against a benchmark of 17% with assets also growing by 260% to GHâ‚µ80 million.
Its assets grew by 260% to GHâ‚µ80 million in 2017. Investments in the long-term instruments were increased ahead of expected interest rate declines.
Speaking at its Annual General Meeting (AGM) in Accra, the Fund Manager for SIFT, George David Allotey said the fund made increased investments in long-term instruments in 2017.
He said bonds made up of 60 percent of the fund’s assets with 26 percent in money market instruments and 14% in cash and near cash securities as the end of 2017.
SIFT Fund Manager noted that, the fund will continue to reduce its exposures from money market into longer dated papers and keenly monitor the yield curve to balance returns and liquidity.
Mr. Allotey added that, this repositioning is expected to bolster the fund’s returns.
Stanlib Cash Trust Performance
The Cash Trust fund also returned 19%, 500 basis points above the benchmark of 14%.
Its asset under management as at the end of 2017 also grew by GHâ‚µ164 million up from GHâ‚µ28 million in 2016 representing a year-on-year growth in assets of 48% with earning contributing 13% to the growth.
At its fifth Annual General Meeting (AGM) in Accra, Fund Manager, Brenda Kissi said the fund at the end of 2017, has about 70 percent of assets in money market instruments with about 20 percent in government securities.
She indicated that, the allocation held in cash and near-cash for liquidity purposes made up 10 percent of assets under management.
Brenda Kissi said their strategy in the quarters ahead is to continue to extend the weighted portfolio duration towards 182 days to enhance performance whiles balancing the liquidity needs of the fund.