CDH Asset Management, the managers of CDH Balanced Fund, has assured that the fund will continue to post impressive results as the stock market recovers in the coming years.
Seth Aryitey, Executive Director of CDH Asset Management, speaking at the fund’s annual general meeting in Accra, said: the fund will continue to chart the course of delivering good returns to shareholders in 2018, as the stock market continues to recover and post significant gains,” he said.
He added that the fund will continue to increase the proportion of its equity holdings, picking up bargain buys that have good fundamentals and promise to post significant capital gains and good dividend payout as the portfolio gradually moves from a conservative mix towards a more balanced fund.
“We will continue to work hard, to increase the number of shareholders and strengthen the digital marketing strategy to reach the borders of the country. As Fund Managers, we encourage our valued shareholders to invest on a regular basis to take advantage of the good years ahead,” he said.
The CDH Balanced Fund, for the year 2017, recorded a return of 33.69percent, compared with 32.96percent in 2016. Funds under management also shot up by 97.53percent, from GHc1.9million in 2016 to GHc3.71million in 2017, due to aggressive digital marketing and outreach effort by the Fund Manager.
The Fund has been consistent, on yearly basis, in posting significant returns since its inception in 2015. It continues to outperform the benchmark Treasury Bill and other investment vehicles, as well as delivering yields above the rate of inflation.
The Fund, in line with its growth strategy, expanded from investments in 3 equities in 2016 to 11 listed stocks in 2017, The Fund held fixed-income instruments consisting 73.8percent of the total funds under management in 2017, while investments in equities accounted for less than 26.2percent.
Shares held included Benso Oil Palm Plantation, Cal Bank, Ecobank Ghana, Enterprise Group, FanMilk Ghana, Ghana Commercial Bank, Guinness Ghana Brewery, Republic Bank Ghana, Standard Chartered Bank Ghana, Total Petroleum Ghana and Unilever Ghana.
The fund reported a 100percent returns on investment to shareholders. The Fund started at a share price of 0.10pesewas per share and closed 2017 at 0.21pesewas per share. As at September 2018, the Fund stood at 0.24pesewas 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.
Board Chairman of the Fund, Emmanuel Adu-Sarkodee, noted that notwithstanding the macro-economic headwinds experienced in the country in 2017, managers of the fund 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.
“The strategy of the CDH Balanced Fund for 2018, as outlined by the Board, continues to focus on the growth of the fund. We will continue to build shareholder value, through an investment portfolio that is structured to ensure financial stability for the medium to long term.
The Fund Manager has stated its readiness to commit to prudent investments that bear moderate risk but deliver good returns. This effort will be supported by dedicated research and brokerage services offered by CDH Securities Ltd, another outstanding member of the CDH Group.
We will continue to abide by our mandate scripture in the Bible; “By wisdom a house is built, and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures.” Proverbs 24:3-4 (King James Version),” he said.