The National Trust Holding Company (NTHC) has held its 44th Annual General Meeting (AGM), where it expressed optimism about the future of its Fund amid the ongoing recovery from the COVID-19 pandemic and economic crisis.
The company highlighted the positive impact of government’s economic policies and predicted that the financial markets will become more vibrant, leading to increased value creation and higher returns on investment for the Fund.
During the meeting, a statement read by the Acting Chairman, Kenneth Vavator Acolatse, emphasised the importance of attracting additional subscriptions and investments to effectively build and diversify the Fund. By capitalising on the evolving investment landscape in Ghana, the company believes it can achieve its objectives and deliver favourable outcomes for its investors.
By this, shareholders are encouraged to continue investing in the Fund. He highlighted the Fund’s potential for growth and emphasised that securing new investments will play a crucial role in maximising returns and capitalising on emerging opportunities.
The Annual General Meeting provided an opportunity for shareholders to gain insights into the company’s performance and future plans. The 44th AGM was held to cover the period of 2018 to 2021.
Fund Performance from 2018 – 2021
The Horizon Fund’s performance had a negative 0.35% return in 2018, which was a significant drop from the impressive 41.72% return in 2017 – and this, according to the Chairman, was fuelled by the Ghana Stock Exchange’s (GSE) poor performance, which had a significant impact on the Fund’s equity portfolio for the period.
However, from 2019 the Fund recorded steady growth in its year-to-date return with 1.99%, 6.15% and 11.97% in 2019, 2020 and 2021 respectively. The Net Asset Value of the Fund reduced from GH₵4,126,294 in 2017 to GH₵2,703,103 in 2021, due to the banking sector clean-up exercise that triggered panic redemptions from shareholders. Meanwhile, Net Asset Value per Share grew from 0.3583 to 0.6481 during the same period.
Commenting on the Fund’s poor performance, Managing Director-NTHC, Isaac Charles Acquah, indicated that in the period of assessment it had not been the best due to some issues of the economy.
He added that as managers of the fund, they have outlined many initiatives which will help improve performance in the coming years. While assuring the shareholders of a positive outlook, he said more engagements will be held with shareholders and clients to inspire hope.
Outlook Beyond 2021
The chairman, touching on the outlook beyond 2021 said: “We remain very positive about the outlook for your Fund as world markets continue to recover from the COVID-19 pandemic and government’s economic policies are rolled out. These, we believe, will cause the financial markets to become vibrant, subsequently leading to an increase in value creation and, thus, increased return on investment for the Fund. The Fund’s ability to achieve its objectives also depends on attracting additional subscriptions and investments. By securing new investments, we can effectively build and diversify the Fund to capitalise on the evolving investment landscape in Ghana. We therefore encourage you to continue investing in the Fund”.
As the world markets continue to recover from the pandemic, the National Trust Holding Company remains positive about the future of its fund. The company’s focus on attracting new investments and capitalising on the evolving investment landscape in the country reflects its determination to maximise returns and provide value to its shareholders.
The 44th Annual General Meeting served as a platform for shareholders to reaffirm their trust in the National Trust Holding Company and its ability to navigate the changing economic landscape. With the ongoing recovery and the implementation of favourable government policies, the company remains optimistic about the Fund’s potential for growth and success.