FirstbanC’s mutual funds record growth

The two mutual funds of FirstbanC Financial Services, First Fund and Heritage Fund, recorded significant growth for the financial year ending December 31, 2015.

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¢44.75 million, on account of an impressive return on investment by the fund’s portfolio and the incessant contributions by both existing and new ones. 

At an Annual General Meeting (AGM) in Accra, the Fund’s Chief Investment Officer, Mr Samuel 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. 

FirstbanC Heritage Fund

The Heritage Fund, also an open-ended equity mutual fund, returned 4.23 per cent at the 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 and hitting an all-year high of GH¢0.44 per unit and then falling to GH¢0.41 a unit at the end of 2015, representing a year-to-date appreciation of five per cent. 

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¢1.5 million as of December 31, 2015. The increase was mainly due to capital appreciation on equities in the portfolio during the period. 

Outlook

Mr Asiedu said First Fund was poised to perform even better in 2016 considering the high rates for treasury instruments. 

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“The fund manager remains committed to ensuring superior returns and capital preservation and will continue to invest in secure high yielding instruments in a bid to obtain its objective and retain the fund’s award as the best performing money market mutual fund,” 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. 

He added that workers could also invest in the fund to serve as an income supplement for the future. 

On the Heritage Fund, he said the fund 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.