CDH Balanced Fund, a top-performing mutual fund in Ghana, has reported 100 per cent returns on investment to shareholders of the Fund over a three year period.
The Fund started at a share price of 0.10 pesewas per share and closed 2017 at 0.21 pesewas per share. As at September 2018, the Fund stood at 0.24 per share. It recorded annualised returns of 30.86 percent, 32.96 percent and 33.69 percent, in 2015, 2016 and 2017, respectively, to shareholders.
The performance was made known at the 3rd Annual General Meeting (AGM) of the CDH Balanced Fund held in Accra.
According to the Board Chairman of the Fund, Emmanuel Adu-Sarkodee, the funds under management also moved from GHs 1.90 million in 2016 to GHs 3.71 million in 2017, representing an increase of 97.53%, over the one year period.
This is owing to the strategic direction of the Board of the Fund as well as sound fund management practices of the Fund Manager.
“Notwithstanding the macro-economic headwinds experienced in the country in 2017, we ensured that the Fund was largely insulated from the effects, by determining a new approach to fund management, marketing and outreach to enhance the growth of the Fund and increase shareholders value,” Mr. Adu-Sarkodee revealed.
Thriving despite banking crisis
Responding to concerns about the strength of the CDH Balanced Fund to survive the seeming banking crisis, the Board Chairman assured current and potential shareholders that the Fund was under strong management.
“The Directors are giving you a full assurance that your Fund is and will always be in good condition. There’s no cause for alarm. We are operating according to law, regulations, prudential requirements and industry standards,” Mr. Adu-Sarkodee assured.
He added, “We are aligned to our fiduciary responsibilities as Directors and will continue to do so. Your investment is safe financially, and safe with regards to corporate governance.”
The future of the Fund
The Managing Director of the Fund Manager – CDH Asset Management Limited, Seth Aryitey, said, this year, the company is and will continue to deploy very prudent management strategies to position the Fund as a safe haven for its shareholders and the investing public.
“The Fund will continue to chart the course of delivering good returns to shareholders in 2018,” Mr. Aryitey said.
He hinted that the CDH Balanced Fund shall continue to increase the proportion of its equity holdings, picking up bargain buys that have good fundamentals.
“The Fund will post significant capital gains and good dividend payout as the portfolio gradually moves from a conservative mix towards a more balanced fund,” He hinted.
The Fund expanded its investments from three equities in 2016 to 11 listed stocks in 2017; the Fund held fixed income instruments consisting 73.8% of the total funds under management in 2017, while investments in equities accounted for less than 26.2%.