NGIS withstands panic withdrawal

Mr. Eric Brobbey, Vice-Chairman, (left), conferring with Prof. K. Dwumor Kessey (right), board member, during the meeting                           

Shareholders of Anidaso Mutual Fund in Kumasi, managed by the New Generation Investment Services Limited (NGIS), have redeemed shares to the tune of over GH¢700,000 in the 2018 year under review – which managers of the Fund have described as unprecedented.

Directors of the company have attributed the cause of this huge withdrawal of investment to the financial ‘turbulence’ that hit the country between August and December 2018; but managers of the Fund were able to withstand the pressure and pay all redemptions that were applied during the period.

By this, the shareholders have realised how safe it is to invest in the Anidaso Mutual Fund. A group of shareholders have advocated strongly and advised fellow shareholders, who out of anxiety and fear redeemed their investment, to have confidence in the board and bring back their money to invest and realise the purpose of their investment.

A board member, Prof. Dwumor Kessey, has also strongly added his voice to this call and assured shareholders of their funds’ prudent management.  He has advised shareholders to seek knowledge of investment and understand how mutual funds work, and thus allow their investment to grow.

“When you bring the money, we also go to the stocks and find out which listed company is doing well and invest your money there; we are only Fund managers, we don’t have any vault where we keep the money,” he stressed.

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Prof. Dwumor Kessey reiterated the need to invest and save money for the future. According to him, it is one of the reasons he – together with Prof. Samuel Afrane and a few others – came together to establish the Fund with the primary objective to encourage savings and investments among the people.

These and many other developments were made known from the Fund managers’ report presented by the Manager of NGIS, Mr. Edward Asamoah, at the 13th Annual General Meeting of shareholders of the Anidaso Mutual Fund held recently in Kumasi.

According to the Fund managers’ report, the collapse of five local banks in the second-half of 2018 brought some level of uncertainty into the financial sector; but this notwithstanding, the overall achievements of the economy were good.

The country achieved many of the macroeconomic targets that were set for 2018. The overall budget deficit of 3.8 percent of the rebased GDP in 2018 was achieved, compared to a deficit of 6.0 percent achieved in 2017. Headline inflation trended downward with occasional upticks during the year 2018, recording 9.4 percent in December 2018 from the 11.8 percent recorded in December 2017.

These macro-economic gains which pertained during the reviewed year made the Fund manage to pull yet another satisfactory performance in all indicators.

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Redemption of shares increased by 237% from the previous year’s GH¢219,511 to GH¢739,794 which managers of the Fund could bear up, while Net Asset Value per share increased from GH¢0.7735 to GH¢0.8262, representing an Annual Yield of 6.81%.

The overall portfolio of the Fund includes Equities of GH¢1,095,586; Money Market instruments of GH¢1,866,878; and other assets in excess of liabilities at GH¢154,592.

Anidaso Mutual Fund performed moderately in the year under review, by recording gross investment income appreciation of 19.72% from GH¢438,488 to GH¢524,974. The reduced incremental rate in investment income in 2018 was resulted from the stock market’s bearish performance.

Operating expenses increased by 51.73% from GHȼ106,507 to GHȼ161,247 – leading to a 9.5% increase in net investment income from GH¢331,981 recorded in the previous year to GH¢363,512. Total liabilities for the year stood at GH¢79,665; which is 102.93% more than the preceding year.

The above performance ensures Anidaso Mutual Fund remains one of the best-performing collective investment schemes in Ghana, amid the storm that hit the market in the latter part of the year 2018.

Shareholders have further been encouraged to continue increaseing their stake in the Fund by buying more shares on a regular basis to enjoy its long-term benefits.

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