Despite the Coronavirus pandemic affecting the investment climate and shattering market confidence, investment firm, InvestCorp recorded impressive performance for 2020, as all four investment portfolios under management recorded impressive growth.
Even though the economic climate was challenging, InvestCorp launched three additional mutual funds in 2020; bringing the number of mutual funds under its management to four.
InvestCorp’s mutual fund offerings enable investors to plan toward and finance their evolving life goals and priorities, especially during this period of economic uncertainty.
Managing Director of InvestCorp, Henry Sunkwa-Mills, attributed the performance to a strengthened investment committee, re-orientation of human capital, continued adherence to corporate governance practices, and application/implementation of innovative electronic channels – especially during the COVID-19 pandemic.
He further assured investors at this year’s Annual General Meeting, AGM of InvestCorp’s commitment to work harder to sustain positive returns on investments, emphasizing the firm’s confidence in the economy’s progressive recovery.
InvestCorp Treasury Securities Fund (ITSF)
One of the investment portfolios, the InvestCorp Treasury Securities Fund (ITSF) – which was launched just in May 2020, with Assets under Management of GH¢200,047 at an initial price of GH¢1 – grew in size to more than ¢14.4million, representing a growth ratio of more than 72.
The Fund achieved an annualized yield of 19.81 percent against its benchmark of 17 percent.
Commenting on the performance, Fund Manager, Solomon Adatsi assured investors of a better performance at the end of 2021.
“This extraordinary feat achieved by the Fund amid the COVID-19 pandemic came as a result of the opportunity the Fund presented to investors seeking safety in Treasury securities, as the outlook remained uncertain. Our active trading strategy and access to real-time pricing data via Bloomberg terminal will enable us to make adjustments in our investment strategy when the need arises,” he said.
Board Chairman, Anthony Ebow Spio, said the ITSF, an open-ended risk-free (sovereign-only exposure) Fund, was designed for investors who seek exposure solely to Treasury bills, notes and bonds or Treasury-backed securities.
He added that the Fund provides a strategic way to get a well-diversified exposure to Government of Ghana securities or Treasury-backed securities to meet investors’ long-term life goals.
InvestCorp Money Market Fund
Another portfolio, the InvestCorp Money Market Fund, also posted an annualized yield of 15.10% for the year ended 2020 against its benchmark of 16.09%, but outperformed the 91-day T-bill. The Fund further recorded growth of 18.4% in Assets under Management to ¢4.9million in 2020, from ¢4.2million the previous year.
The Fund is modelled to balance the risk associated with earning competitive returns with capital protection, through a rigorous investment approach ensuring that investors benefit from the current growth and opportunities, while keeping investment risk to the barest minimum. The Fund’s investment universe consists of short-term Treasury securities, certificates of deposits, cocoa bills, repurchase/reverse agreements and commercial papers.
Commenting on the economic outlook, Abena Sam-Asmah (Fund Manager) highlighted reinvestment risks to the portfolio considering the current low interest rate environment, although outlook for 2021 remains positive.
“We remain cautious and are closely monitoring new developments from the pandemic’s fallout, and its impact on the economy and capital markets, in order to build a resilient portfolio,” she said.
The InvestCorp Active Equity Fund (IAEF)
The Active Equity Fund portfolio also posted an increase in Assets under Management from ¢81,098 in 2019 to ¢182,601 in 2020, representing a growth of 125.2%. The Fund posted a return of -5.67% in 2020, outperforming its benchmark (GSE Composite Index) which stood at -13.98%.
The performance, according to Fund Manager, Leticia Opoku, was due to investment in stocks across the financial, petroleum and telecom sectors which posted stronger earnings and valuation multiples.
To boost the performance for this year, she added that the fund will maintain its fixed-income holdings for liquidity management as well as hedge against shocks and volatility on the bourse.
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