…shareholders to receive returns
Anidaso Mutual Fund PLC has recorded impressive growth in its investment income by 26 percent and Net Asset Value per share increased to 18.66 percent in 2021, based on the country’s strong recovery from the COVID-related economic challenges.
This stride will enable shareholders to enjoy returns on their investments in the ensuing year; therefore, shareholders were encouraged to buy more shares regularly to enjoy the long-term benefits of the fund.
The fund’s impressive performance in 2021 is expected to continue in 2022 but in moderation as the mixed performance of the equity’s market may affect the rate of growth of the fund in 2022.
According to Mr. Edward Asamoah, General Manager of New Generation Investment Limited, the fund manager, its performance soared in the year under review by recording gross investment income appreciation of 26 percent from GH¢309,691 to GH¢390,364 due to the bullish performance of the stock market.
Operating expenses increased by 7.06 percent from GHȼ148,368 to GH¢158,845, and this led to a 43.51 percent increase in net investment income from GH¢161,323 recorded in 2020 to GH¢231,519 in 2021. Total liabilities for the year stood at GH¢37,528, representing 35.85 percent less than the preceding year.
In addition, redemption of shares decreased from the previous year’s GH¢560,516 to GH¢433,757, representing 22.61 percent while sale of shares increased by 10.22 percent from GHȼ350,292 to GHȼ386,096.
Net Asset Value per share increased from GH¢0.7948 to GH¢0.9431, representing an Annual Yield of 18.66 percent. The overall portfolio of the fund includes Equities of GH¢996,284 (32.29 percent), Money Market instruments of GH¢1,872,470 (60.70 percent) and other assets in excess of liabilities of GH¢216,181 (7 percent).
Outlook for 2022
The challenging global economic conditions in 2022 are expected to compound further as the global economy is expected to experience sharp deceleration. To this effect, inflation across most countries has surged as a result of rising commodity prices and higher supply disruptions.
As the world is yet to recover from the COVID-19 pandemic, the slowdown in advanced economies is likely to spill over to emerging markets and developing economies. The slowdown in the growth of the global economy is expected to trickle down to the domestic economy, leading to moderate economic growth amid high inflation, supply bottlenecks and exchange rate uncertainty.
Therefore, as government continues to crowd out the private sector by pursuing domestic funding for closing the gap on its budget deficit for 2022, the stock market’s performance will be impacted negatively, and consequently affect the fund’s growth prospects in 2022.
Board Chairman of Anidaso Mutual Fund PLC, Prof. Daniel Yinka Sarfo, for his part, assured shareholders that the directors are responsible for ensuring that the fund keeps proper accounting records that disclose with reasonable accuracy the financial position of the fund.
He added that the directors would ensure shareholders assets are safeguarded and reasonable steps taken for the prevention and detection of fraud and other irregularities.
Prof. Yinka Sarfo explained further that the year 2021 witnessed strong recovery from the COVID-related economic challenges. This was evidenced in Ghana Statistical Service’s (GSS) update on the economy which revealed the average real GDP growth for the first three quarters of 2021 to be 5.3 percent, compared with an average contraction of 0.6 percent recorded in the same period of 2020.
In addition, economic activities of the country as measured by the Composite Index of Economic Activity (CIEA) recorded an annual growth of 10.2 percent in November 2021, though lower than the 11.9 percent in the same comparative period in 2020.
Prof. Yinkah Sarfo noted further that there was a surge in business sentiments about the economy that were driven by the achievement of short-term company targets and optimism about companies’ growth prospects, according to Bank of Ghana’s confidence surveys conducted in December 2021.
The Board Chairman concluded and expressed his optimism that the fund’s impressive performance in 2021 is expected to continue in 2022 but in moderation as the mixed performance of the equity’s market may affect the rate of growth of the fund in 2022.
He, however, assured shareholders of earning positive returns on their investment by the end of the year 2022 as the half year performance suggests. He further encouraged all shareholders to buy more shares on regular basis to enjoy the long-term benefits of the fund.