InvestCorp Asset Management Limited’s managed funds posted impressive growth for the 2021 financial year, with management poised to repeat same this year despite the current local and global economic challenges.
Speaking in an interview with the B&FT at the funds’ Annual General Meetings (AGM) held in Accra and streamed virtually to shareholders, Deputy Managing Director of the company, Kwabena Apeagyei, said though the macroeconomic environment this year poses some challenges to the industry, especially with soaring inflation which has decreased real returns on most investments, his outfit will employ the necessary strategies to ensure clients still make gains on their investments.
“The year started on a good note; but suddenly, we started seeing changes in a lot of the macroeconomic dynamics; we saw inflation going up significantly and the consequent increase of the policy rate by the Bank of Ghana. We have taken steps to rebalance the various portfolios and expect the returns to improve significantly, but at a slower pace in comparison to the hikes in interest rates. We encourage our shareholders to continue to have faith in the funds,” he said.
He touted the firm’s performance in 2021 as a testament of the trust and confidence shareholders and customers still have in it to turn things around.
“Firm-wide, we grew our Assets under Management (AUM) strongly; but most importantly, we launched our electronic hub (e-Hub) platform which has given our clients access to their investment accounts from the comfort of their location. The e-Hub comprises a Mobile App (on Android and iOS), USSD platforms, a self-service portal on our upgraded website and other automated top-up platforms for our clients in both private and public sectors. This has given convenience to our clients and also boosted their confidence in us as an institution since they are able to access their investment accounts 24/7,” he said.
Fund performance
The four mutual funds currently managed by the firm are the InvestCorp Mid-Tier Financial Services Investment Fund, InvestCorp Treasury Securities Fund, InvestCorp Money Market Fund and InvestCorp Active Equity Fund.
InvestCorp Mid-Tier Financial Services Fund (IMTF)
The fund recorded an annualised yield of 17.38 percent for the year under review against a benchmark of 15.51 percent. The fund further recorded an AUM of GH¢20.5million, representing a 12.8 percent growth from the previous year.
Fund Manager, Solomon Adatsi, explained that the growth recorded was as a result of the pick-up in economic activities due to the return to normalcy after the COVID-19 restrictions were lifted.
The InvestCorp Treasury Securities Fund (ITSF)
The InvestCorp Treasury Securities Fund achieved a full year yield of 18.4 percent against its benchmark of 16.5 percent. It again recorded an AUM of GH¢62.5million from the previous year’s GH¢14.5million, translating into a growth rate of 330 percent.
Fund Manager, Solomon Adatsi, noted that the performance reaffirms the confidence investors have in the fund as a safe haven for those seeking safety in treasury securities.
InvestCorp Money Market Fund (IMMF)
The InvestCorp Money Market Fund outperformed its benchmark of 14.51 percent, with an annualised yield of 14.94 percent. It ended the year with an AUM of GH¢6million, an improvement of 21.3 percent.
The Fund Manager was quoted as saying: “We expect yields to remain elevated in 2022 on the back of debt sustainability concerns and anticipated interest rate hikes in the US which is likely to fuel further exits from the local currency bond markets. Hence, we will take advantage of the upward shift in the secondary market curve to lock-in good yields while exiting profitable positions (if any)”.
The InvestCorp Active Equity Fund (IAEF)
The InvestCorp Active Equity Fund recorded a return of 51.75 percent in the year under review, outperforming its benchmark, the Ghana Stock Exchange Composite Index (43.6 percent). The fund further recorded an increase in Assets under Management of 18.3 percent.
The Fund Manager, Leticia Opoku, however, noted that the current economic environment posed challenges for the fund this year, but they remained positive about a rebound.
