InvestCorp Asset Management Limited, the fund manager of InvestCorp Mid-Tier Financial Services Investment Fund Plc. (InvestCorp Mid-Tier Fund), has stated that despite the recent challenges in the Ghanaian financial sector, the Fund realised an impressive annual increase of 74% in its shareholder base at the end of 2018.
The company in its 2018 Annual Report, presented to shareholders at its maiden Annual General Meeting (AGM) at the British Council, Accra, reported an Assets Under Management (AUM) of approximately GHS14.5 million representing a 149% increase from the previous year-end value.
The Fund Manager indicated in its report, that despite the liquidity challenges and instability faced in the financial sector, the Fund was able to keep outflow under 30% of inflow.
They attribute this to prudent investment decisions made to safeguard investors’ funds and provide competitive returns as well as liquidity options provided by the custodian.
The report also indicates that in spite of the various market and industry challenges, the Fund achieved an annualized yield of 20.43%, outperforming its benchmark, the Government of Ghana 91-day Treasury bill, which ended the year at 14.56%.
Managing Director of InvestCorp Asset Management Limited, Henry Sunkwa-Mills, indicated that as Bank of Ghana (BoG) continues with the clean-up exercise in the financial sector, a more stable environment will be created that will ensure stronger fundamentals and improved liquidity to support the economy and make it possible for investments to thrive.
On the Fund’s strategy for the rest of the year, Mr. Sunkwa-Mills said: “Our investment strategy for 2019 is to increase the Fund’s holdings in carefully selected medium-term tradeable bonds. We are confident that the Fund will continue to post impressive performance and remain one of the best performing mutual funds in Ghana. “
Board Chairman of InvestCorp Mid-Tier Fund, Dr. Anthony Aubynn, added: “The Mid-Tier Fund continues to provide an opportunity for shareholders to benefit from a portfolio of high yielding fixed income securities over the medium to long-term while enjoying from the safety that comes with strategic asset allocation and diversification.”
InvestCorp Mid-Tier Fund is an open-ended mutual fund which seeks to achieve high income by investing in a diversified portfolio of fixed income instruments (debt and preferred equity) issued by Financial Services Institutions, Statutory Agencies, Government of Ghana (GoG) and Corporations.
It aims to achieve highly attractive risk-adjusted returns for its investors over the medium to long term.