Graphic Business News

STANLIB investments record growth in 2018

By: Suad Yakubu
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Mr George David Allotey, Fund Manager, SIFT
Mr George David Allotey, Fund Manager, SIFT

The two funds of STANLIB Ghana Limited; the STANLIB Income Fund Trust (SIFT) and the STANLIB Cash Trust (SCT) have both recorded positive returns, surpassing their benchmark for 2018.

The SIFT churned out 17.5 per cent of returns against a benchmark of 15.6 per cent, with assets also growing to GH¢147 million, which represented an 86 per cent increase compared to GH¢78 million in 2017. 

The SCT also returned 16.1 per cent, which represented a 250 basis points above the benchmark of 13.6 per cent.

Its asset under management as at the end of 2018 also inched up to GH¢259 million, representing a year on year growth in assets of 57 per cent with earnings contributing 34 per cent to the growth.

The fund managers of the respective funds made this known at the 8th Annual General Meeting (AGM) on July 12 in Accra.

 

SIFT performance

The SIFT has consistently outperformed its benchmark in the past six years, with full year returns of 17.5 per cent compared to the benchmark return of 15.6 per cent. This translated into to full year distributable earnings per cent which yielded GH¢17.6 million, representing a 26 per cent increase in 2018.

The Fund Manager for SIFT, Mr George David Allotey said the fund made increased investments in long-term instruments in anticipation of a decline in interest rates in the latter part of 2018.

He also mentioned that bonds made up 62 per cent of its fund’s assets, with 13 per cent in money market instruments and 19 per cent in cash and near-cash securities as at the end of 2018.

According to Mr Allotey, the fund’s performance was attributed to comparatively higher rates in corporate bonds and the tactical allocations into papers with maturities of more than two years.

 

SCT performance

The fund had approximately 22 per cent of its assets in money market instruments with about 61 per cent in government securities. 

Allocation held in cash and near-cash for liquidity purposes made up 17 per cent of assets under management.

Full year returns for 2018 was 16.1 per cent, which was 250 basis points above the benchmark return of 13.6 per cent.

The Fund Manager of SCT, Mrs Brenda Kissi said the outperformance of the benchmark was as a result of tactical investment positions taken in 2017 in six-months and one-year papers even though interest rates tapered in 2018.

She added that its net investment income distributed in the year also increased by 82 per cent to GH¢ 31 million in 2018 from GH¢ 17 million recorded in 2017.