…funds investment income increased by 44%
NGIS Market Fund Ltd. has recorded very impressive performance as the fund’s investment income increased by 44 percent due to the strong economic recovery in 2022, which made a heavy impact on the fund’s performance.
This translated to the fund’s investment income growing from GH₵508,652 in 2021 to GH₵734,880 in 2022. Management and operating expenses increased by 3.25 percent from GH₵49,954 in 2021 to GH₵51,577 in 2022. Net Asset Value of the fund stood at GH₵5,527,974, an increase of 24.64 percent from the last value of GH₵4,435,120. This translated into a Net Asset Value per share increase from GH₵1.4984 to GH₵1.6662, representing an Annual Yield of 11.20 percent.
Speaking at the 4th Annual General Meeting (AGM), Chairperson Board of Directors for NGIS Money Market, Prof. Kwaku Dwumor Kessey, said the solid performance of the fund is because the year 2022 witnessed a strong recovery from the Covid-related economic challenges. This was evidenced in Ghana Statistical Services (GSS) update on the economy, which revealed average real GDP growth for 2022 to be 3.3 percent, compared with an average expansion of 5.2 percent recorded in the same period of 2021. Further into the fourth quarter, the bank’s high frequency indicators recorded a moderation in economic activity. The updated Composite Index of Economic Activity (CIEA) contracted by 6.2 percent in November 2022, compared with a growth of 10.2 percent in the same period of 2021.
The major items that weighed down the index during the period were port activity, cement sales, imports, and industrial consumption of electricity. The latest confidence survey conducted by the Bank of Ghana in December 2022 pointed to some marginal improvement in sentiments. Consumer confidence improved on the back of the recent reductions in ex-pump petroleum prices and transportation fares.
Prof. Kessey further expressed confidence that the conclusion of the IMF agreement and any potential payments made in 2023 will increase the Bank of Ghana’s reserves and inspire optimism and vigour in the country’s financial system.
He added that to ensure that shareholders continue to gain from their investments and receive good value, maintaining sufficient liquidity and protecting capital will continue to be the fund’s primary priority.
He then urged shareholders to continue placing their confidence in NGIS Money Market Fund PLC as their go-to investing choice.
“We want to highlight that we are totally devoted to finding and utilising the most advantageous investment possibilities to encourage the growth of the fund since we appreciate your trust in the Board very highly,” he said.
Performance of NGIS Money Market Fund
General Manager of NGIS Market Fund, Edward Asamoah, touching on the fund’s performance, indicated that the fund recorded gross investment income appreciation of 51.12 percent from GH₵681,648 in 2021 to GH₵1,030,106 in 2022. The increase in investment income in 2022 was due to a marginal increase in interest rates on money market instruments.
Operating expenses increased by 3.25 percent from GH₵49,954 in 2021 to GH₵51,577 in 2022, and this led to a 44.48 percent increase in net investment income from GH₵508,652 recorded in 2021 to GH₵734,880 in 2022. Total liabilities for the year stood at GH₵59,085, representing 42.67 percent more than the preceding year.
In addition, redemption of shares increased from the previous year’s GH₵1,585,635 to GH₵2,305,306, representing 45.39 while sale of shares increased by 56.88 percent from GH₵1,845,864 to GH₵ 2,895,781. Net Asset Value per share increased from GH₵1.4984 to GH₵1.6662, representing an Annual Yield of 11.20 percent. The overall portfolio of the fund includes cash and cash equivalent of GH₵399,939, representing 7.16 percent; short-term investments of GH₵3,945,801 representing 70.62percent; medium-term investments of GH₵ 835,507, representing 14.95 percent and other assets of GH₵405,812, representing 7.26 percent.
Future outlook
Edward Asamoah highlighted that it is anticipated that headline inflation will continue to exceed the upper bound of the Bank of Ghana’s medium-term objective of 8±2 percent. It is anticipated that actions like tighter monetary policy, stable currency rates, and the signing of the IMF agreement will aid in re-establishing macroeconomic stability.
Therefore, the fund manager’s main goal for the coming year will be to make strategic investments in a variety of high-quality and highly liquid assets. Its objective is to create a well-balanced portfolio that provides our investors with stability, security and liquidity. The viability of the securities held by the fund will also be routinely reviewed and evaluated.
Also, the fund manager would alter the portfolio as needed based on these assessments to maximise returns while controlling risks. It shall keep an eye on market indications and movements to inform decisions and make wise investment decisions that are consistent with the funds overall investment strategy by keeping an eye on market conditions.
Mr. Asamoah further expressed confidence in the fund’s ability to successfully navigate shifting market conditions and achieve its objectives, laying a strong basis for the prosperity of shareholders.
