STANLIB Ghana Limited recorded strong business performances in 2019 for the STANLIB Income Trust Fund (SIFT) and the STANLIB Cash Trust (SCT), the two funds that the company manages. This was revealed at the company’s 2019 virtual Annual General Meeting (AGM) held recently.
In her report to unit holders of the STANLIB Cash Trust, Brenda Kissi – Fund Manager of the STANLIB Cash Trust – noted that the fund was able to record a return 40 basis points above the benchmark set for 2019, a feat she attributed to strategic positioning of the funds.
“The full year return for 2019 was 15.1% – 40 basis points above the benchmark return of 14.7%. The tactical positions taken in high-yielding government 6-month and 1-year papers accounted for the outperformance of the benchmark. Net investment income for the year increased by 21% to GH¢38m from GH¢31m in 2018,” Brenda Kissi said.
Fund Manager for the STANLIB Income Trust Fund, George David Allotey, in his report to unit holders indicated that the fund was able to grow its assets by 59 percent although sharp shifts in benchmark rates during the year under review hindered the fund from meeting its benchmark.
George David Allotey said: “SIFT’s assets grew by 59% to GH¢243million in 2019. Investments in medium-term government Treasuries, cash and near cash securities were increased. Bonds made up 69% of the Fund’s assets, with 22% invested in money market instruments and 9% in cash and near cash securities as at the end of 2019. The full-year return for 2019 was 17.4%, trailing its benchmark of 18.2% by 80 basis points. This is ascribed to the sharp shifts in benchmark rates”.
STANLIB Ghana Limited is a multi-specialist asset manager that connects retail and institutional clients with multiple investment opportunities across asset classes and markets. The company is licenced with the Ghana Securities and Exchange Commission, and registered with the National Pensions Regulatory Authority. STANLIB Ghana’s products include the STANLIB Cash Trust and STANLIB Income Fund Trust.
The STANLIB Cash Trust is an open-ended unit trust fund. The primary objective of the Fund is to maximise short-term income while preserving capital through investing in a portfolio of money market securities including Treasury bills, fixed deposits and certificates of deposit and debt securities with maturity not exceeding 13 months.
The STANLIB Income Fund Trust, on the other hand, is an open-ended unit trust fund. The primary objectives of the fund are to maximise short-term income as well as long-term sustainable income and capital appreciation of its assets, and through investing in a portfolio of fixed income securities including government Treasury bills and notes, fixed deposits and other corporate debt securities.