Republic Investment optimistic about rebound of local bourse

The Chief Executive Officer (CEO) of Republic Investment Ghana Limited, Mr Peter Larbi-Yeboa, has projected a rebound in the performance of the Ghana Stock Exchange (GSE) this year after it performed poorly in 2018.

As a result, he said the development was a significant factor to help improve the metrics by which the listed companies on the local bourse were measured.

Addressing the company’s 2018 annual general meeting (AGM) on July 10, in Accra, Mr Larbi-Yeboa urged investors to take stakes in sustainable equities to benefit from the anticipated growth.

He observed that the recent reforms in the banking sector had contributed immensely to growth of the country’s economy.

Strong economic growth, he said, would help boost the earnings of most corporate institutions and also improve the metrics by which the listed companies on the local bourse were assessed.

“The Republic Investment has a solid history of performing funds. We, therefore, encourage you to continue investing in our funds, while encouraging others to do same, primarily as a means to diversify individual portfolio holdings and reap the benefits associated with a well-diversified portfolio.

“We are committed to prudently investing your funds in financial assets that would provide optimal returns. You have been part of our success story and we appreciate the confidence reposed in us,” he said.

Performance of funds

According to him, the year 2018 was a difficult one for the entire financial services industry following reforms in the securities and the banking sector.

“This saw the collapse of some banks, the withdrawal of the licences of others, as well as some merging. Indeed, bear market witnessed for a greater part of 2018, perhaps as a result of the happenings in the financial sector, did not aid the performance of the fund.”

Whereas the GSE composite index managed a negative 0.29 per cent, the Republic Investment Equity Trust fund ended the year with positive return of 0.55 per cent.

A five-year performance assessment positioned the fund favourably at 12.33 per cent against the composite index of 6.15 per cent. The fund value of the Equity Trust grew from GHȼ9.67 million in 2017 to end the year at GHȼ14.20 million.

This change represents a year-on-year growth in fund value of 46.85 per cent.

Resilient fund

On its Unit Trust fund, Mr Larbi-Yeboa said it proved to be a resilient fund throughout the year, against the backdrop of events that occurred throughout the reporting period.

The fund met all its obligations timeously in an unprecedented industry setting that was characterised by liquidity. It grew by 28.20 per cent from GHȼ181.59 million as at the end of 2017 to GHȼ232.93 million at the end of the reporting period.

While the industry grappled with the disruption associated with the reforms in the sector, the Future Plan Trust saw a whopping growth of 93.76 per cent in fund value.

The fund value doubled year-on-year from GHȼ961 million in 2017 to GHȼ18.64 million in 2018.

Resounding growth

The CEO indicated that the resounding growth was spurred by increased deposits from existing unit holders, enrolment of new unit holders and returns made on the fund’s asset.

On its Real Estate Investment Trust (REIT), he said it grew by in value by 13.61 per cent to GHȼ71.27 million at the end of 2018 from the 2017 recorded fund value of GHȼ62.73 million.

The fund also chalked up a notable positive return of 14.30 per cent in an environment characterised by stagnation.