FirstBanc First Fund tops money market mutual funds

Accra, April 28, GNA - FirstBanc First Fund, a short to medium term money market mutual fund, posted an impressive annualised yield of 37.86 per cent in 2015 to top the charts of money market mutual funds in Ghana.

The Fund, managed by FirstBanC Financial Services, outperforms the 91-day and 182-day treasury bills, which closed the year at 22.9 per cent and 24.45 per cent respectively.

Addressing shareholders at the Annual General Meeting of the First Fund, Board Chairman Professor Cletus Dordunoo, said the good performance was achieved despite the reduction in treasury rates and general market rates.

He said in 2015, the Asset Under Management (AUM) almost doubled, up by 94 per cent from GH¢22.8 million in 2014 to GH¢44.75 million on the back of remarkable return on investment by the fund's portfolio and the contributions by both existing and new clients.

Besides, there was a significant increase in the number of shareholders from 9,391 in January 2015 to 11,604 at the end of the year, representing a growth of 17.81 per cent.

Prof Dordunoo urged shareholders to continue investing in the fund at the receiving banks and also announced arrangements being made to enable investors pay their contributions through UBA.

'This move will add up to the number of our growing partner banks and most importantly afford our clients who do business with the UBA the ease of topping up their accounts,' he said.

On the outlook for 2016, Professor Dordunoo said the Fund was poised to make giant returns on account of expected increase in government expenditure in 2016 and an improved performance of the treasury market and the fixed income market as government plans to issue a five-year bond.

Mr Samuel Annie Asiedu, Chief Investment Officer FirstBanc, said First Fund was poised to perform better in 2016 as rates on treasury instruments rise.

He said the strategy in 2016 is to invest funds in high yielding short to medium securities with minimal risk while making sure returns on the funds are optimised.

'Nonetheless, we will monitor macroeconomic conditions and adjust our strategy accordingly as and when deemed fit,' Mr Asiedu said.

He appealed to Pension Scheme Trustees and Fund Managers as well as workers to consider investing in the First Fund for high returns.

'The fund manager remains committed to ensuring superior returns and capital preservation and will continue to invest in secured high yielding instruments in the bid to obtain its objective and retain the Fund's award as the best performing money market mutual fund in 2016 and beyond,' Mr Asiedu added.

Meanwhile, FirstBanc Heritage Fund, a long-term equity market mutual fund, made a return of 4.23 per cent at the end of 2015 compared to a negative return of 11.77 per cent recorded by the Ghana Stock Exchange.

GNA