Stanlib records positive results in 2016
The two funds of Stanlib Ghana Limited, Stanlib Income Fund Trust (SIFT), and the Cash Trust Fund (SCT) have both outperformed their benchmark in 2016.
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SIFT, which is an open-ended unit trust fund, churned out strong returns in 2016 as it recorded a net return of 26 per cent against a benchmark of 23 per cent, with assets also growing from GH¢ 15.6 million in 2015 to GH¢ 21.7 million, representing an increase of 43 per cent.
The Cash Trust fund also returned 25 per cent, which were 300 basis points above the benchmark of 22 per cent.
Its asset under management as at the end of 2016 also grew to GH¢ 24.4 million from GH¢10.7 million in 2015, representing a year on year growth in assets of 166 per cent with earnings contributing 25 per cent to the growth.
SIFT performance
SIFT, for the fourth year running, outperformed its benchmark, with full year returns of 26 per cent compared to the benchmark return of 23 per cent. This translated to full year distributable earnings growth of 54 per cent, as it grew to GH¢ 3.9 million.
The Fund Manager for SIFT, Mr George David Allotey, speaking at its annual general meeting (AGM), said the fund made increased investments in long-term instruments in 2016, in anticipation of interest rates decline.
He said bonds made up 53 per cent of its fund assets, with 39 per cent in money market instruments and eight per cent in cash and near-cash securities as at the end of 2016.
The fund also revised its mandate in order to reflect its long term predominantly fixed income nature. As a result, it sold its investments in equities.
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Mr Allotey said, going forward, the fund would rebalance its exposures from money market into corporate bonds as new issues were being offered on the market.
This repositioning, he said, was expected to bolster the fund’s returns.
He also noted that the Fund’s units issued in 2016 increased by 29 per cent despite a 15 per cent increase in the number of units redeemed in 2016 as compared to 2015.
He said its fund price also increased by 26 per cent year-on-year, from GH¢ 2.63 in 2015 to GH¢ 3.30 in 2016.
SCT performance
The earnings for the SCT in 2016 more than doubled from GH¢ 1.7 million in 2015 to GH¢ 4.3 million in 2016.
The fund had approximately 80 per cent of its assets in money market instruments with seven per cent in government securities. Corporate notes with maturities of less than 13 months made up three per cent, while 10 per cent was held in cash and near-cash for liquidity purposes.
Full year 2016 return was 25 per cent, which was three percentage points above the benchmark return of 22 per cent.
The Fund Manager of SCT, Mrs Brenda Kissi, said the outperformance was as a result of its tactical investments in 6-months and one-year paper while interest rates decreased.
She said its net investment income distributed in the year also grew from GH¢ 1.7 million in 2015 to GH¢ 4.19 million in 2016, representing an increase of 240 per cent. —GB