SAS optimistic of sustained growth
SAS Fortune Fund Limited is optimistic of growing asset under management to GH¢20million this year, as it seeks to create value for shareholders.
The Fund’s total Asset Under Management (AUM), as at the December 2016, stood at GH¢3,396,934, representing a 14.3% increase over the previous year’s figure of GH¢2,971,909.
The Managers of the Fund said the increase in AUM is partly attributable to the performance of the fund, which stood at 6.30% at the end of the year as compared to -15.33 return on the GSECI. Shareholders also made fewer redemption during the year as compared to the previous year.
Anthony Degbato, Head of Asset Management, SAS Fortune Fund Limited said: “With the economy experiencing a further reduction in interest rates, monetary policy, stable exchange rate and government policies geared at economic growth, the stock market has already started recovery and we anticipate a greater performance for the fund this year.
With your support we will continue to make the fund the most attractive equity mutual fund on the market in terms of both growths in asset values and returns,” he said.
He explained that the Fund’s performance was better than the market and most equity mutual funds in spite of the challenges posed by the economy, emanating from high deficits amid low commodity prices resulting in slower than expected Gross Domestic Product (GDP) growth rate of 3.5%, the lowest in 20 years.
He observed that the resulting government activity in debt market shifted investor interests towards fixed income securities which offered higher returns at the expense of the equity markets
Available data shows that the SAS Fortune Fund is currently the highest performing equity mutual fund in the country, beating the GSE-CI (16.8%) which is largely considered as the benchmark for equity funds. The Fund also has a higher year to date yield than the current Treasury bill rate of 91 day 12%.
The SAS Fortune Fund portfolio is well diversified, with majority of its securities held in high performing stocks in the financial services and oil industry which have both seen impressive growth in half year 2017.
The growth in both industries is likely to continue their upward trend as oil prices are expected to increase and financials continue to enter into the untapped Ghanaian market through increased branch networks and products tailored for the local customer.
The investment objective of the fund is to achieve long –term capital growth for its shareholders, by investing a greater portion of its asset in companies with strong fundamentals, strong growth trends and strong income generation potentials. The fund meets its liquidity obligations by investing in short term fixed income securities.
The fund’s performance in 2016 as compared to the bench mark GSE composite index was laudable. The unit price of the Fortune fund increased by GH¢ 0.0319 to close the year at GH¢ 0.5383.
The fund made a total return of 6.30% as compared to the GSE composite index of negative 15.33%. Once again as promised, the fund out performed all the major indices including the GES composite index -15.33%, GES Financial Stock Index -19.93%, SAS financial index 6.29 % and SAS index 6.15% with an exception to SAS manufacturing index 22.70%.
Although a bearish market performance or periods especially in our part of the world is usually characterized with investors with medium to low risk appetite cashing out on their investment, the fund’s asset value grew by 14.3% to c lose the year with GH 3,396,934 in 2016 from GH 2,971,909 in 2015.
The strategy used in managing the fund for the period included active rebalancing, a well- diversified portfolio and close attention to risk management to reflect the economic environment in which the fund operates.
This resulted in the positive performance posted by the fund in 2016. We will continue to adapt strategies which will enable us take advantage if investment opportunities to generate value for shareholders.
Mr. Maxwell Logan, Board Chairman of the Fund said: “We remain positive about the future prospect of the economy in the market in which the fund operates. We have started seeing those prospect reflecting in the performance of the fund already.
During the 2017 first quarter, SAS Fortune fund was the best performing equity fund in the country making a year – to- date return of 12%.”
He added: “We anticipate Treasury Bill rate to be sustain at low levels as we are witnessing currently. We also anticipate the Ghana Stock Market to continue to respond positively as it started at the beginning of 2017. I therefore recommend to you to buy more shares of SAS Fortune funds to reap the full benefits of your investment.”
He thanked shareholders for the trust and confidence they have in the fund and over the past years. “We believe that SAS Fortune funds would not only give you a competitive return but also remain one of the best equity mutual funds in Ghana,” he said.