THREE mutual funds, SEM Fncome Fund, SEM Money Plus Fund and SEM All-Africa Equity Fund, operated by SEM Capital, returned strong yields to investors last year after beating their peers.
While the SEM Money Plus Fund returned 19.98 per cent on investment last year, annualised return on the SEM Income Fund ended 2017 at 19.9 per cent. The SEM All-Africa Equity Fund also ended last year with an annual return of 40 per cent.
The 19.98 per cent return on the SEM Money Plus Fund outweighed the year-end return on the 91-day bill, which was 14.08 per cent.
The fund managers of the three funds disclosed these to shareholders at the 2017 annual general meeting in Accra.
The Manager of SEM Money Plus Fund, Ms Lydia Nutifafa Owusu, told shareholders that total assets under management rose from GH¢1.6 million in 2016 to GH¢2.3 million last year. The growth represented a 43.8 per cent within the 12-month period.
On the asset classification, she said 96.53 per cent of the total assets was in fixed income securities while the remaining 3.47 per cent was in cash.
She said the fund’s net investment was GH¢219,467 for the year.
The number of shareholders also rose to 524 in December last year, up from 2016 the previous year.
Going forward, Ms Owusu said the management of SEM Money Plus Fund would take advantage of the government’s commitment to stabilise the economy to grow the fund and increase returns to shareholders.
SEM Income Fund
The Fund Manager of SEM Income Fund, Ms Augustina Gyimah, also disclosed that the total assets of the fund were valued at GH¢962,813 as of December last year.
It represented an annual growth of 94 per cent over the GH¢496,218 recorded in 2016.
She added that the number of shareholders rose to 168 in 2017 from the 111 in 2016.
She was optimistic that the projected strong growth in the equity market would impact positively on the performance of the fund.
This should translate into strong returns to shareholders, she said.
Last year, about 96.5 per cent of the fund’s assets were held in fixed income securities while 1.84 per cent and 1.63 per cent were in equities and cash respectively.
SEM All-Africa Equity Fund
The Fund Manager of the SEM All-Africa Equity Fund, Ms Grace Quaye, also disclosed that the value of total assets rose from GH¢376,334 in 2016 to GH¢559,238 last year.
She said the fund recorded a net gain of GH¢43,577 in investment income and a net realised capital gain of GH¢5,118.
Going forward, she said 2018 promised positive returns.
“With the upswing in commodity prices for most commodities traded by our portfolio countries, we expect better economic performance for 2018 and beyond.
“We expect returns on the equity markets across sub-Saharan African to record strong positive performance for 2018,” she added.
As a result, she was optimistic that the returns would continue to improve in 2018 as management positioned itself to take advantage of emerging trends to diversify the portfolio risk and increase earnings for shareholders.