After receiving approval from unit holders, the Board Chairman of First Finance Company, Michael Asa-Eck is optimistic that reclassifying the Trust’s assets will put it in a better position to increase liquidity.
He expressed this optimism at the Trust’s recently held annual general meeting which among other things sought to seek the consent of unit holders to create two classes of units as a temporary measure in dealing with legacy issues and to separate and hold non-interest-bearing but validated assets separate from the interest-earning assets of the trust.
“We got approval to reclassify some of the assets under our management. So, with this reclassification, we will be able to improve the liquidity of our Fund and also to be able to help our fund to grow faster.
“The data from the Bank of Ghana shows a downward trend in inflation which translates to stability of incomes and possibly more disposable income in the pockets of investors. So, we are expecting that this will translate into more investment in our fund and that means that our funds will be able to grow faster,” he said, highlighting measures intended towards growth.
The Gold Fund Unit Trust is an equity trust fund that seeks long-term capital appreciation by investing primarily in both listed and unlisted equity securities of Ghanaian companies as well as fixed-income securities.
Portfolio performance for the year under review
The Fund Manager, Emmanuel Dakwa stated that total assets under management (AUM) at the end of the year 2022 stood at GH¢23.54 million, representing an 18.6 percentage growth from the year 2020 (GH¢19.89 million) and a 0.34 percentage points decline from GH¢23.62 million recorded at the end of the 2021 financial year. The decline in the total assets between 2021 and 2022 reflects the bearish performance of the equity market in 2022 in comparison to the prior year, 2021 and the non-interest-bearing assets under receivership (GH¢6.15 million) which are yet to be paid. The total number of units outstanding ended the year 2022 at 20,078,003, as compared to 20,739,179 for year-end 2021.
Fund price and returns
Price per share increased to GH¢1.1693 at the end of year 2022, up from GH¢1.1155 recorded in the prior year 2021. The Fund recorded a year-to-date return of 4.82 percent for the year 2022 and compares favorably with the benchmark return of 2.8 percent which is the weighted average return on the 364-day Treasury bill rate and the Ghana Stock Exchange-Composite Index. Cumulatively from inception, unit holders recorded a 16.93 percent return on their investment at the end of the 2022 financial year.
Outlook
With the fund recording an 18.6 percentage growth in total assets under management at the end of the 2022 financial year, the portfolio is poised for further growth to achieve competitive returns for unit holders.
“In terms of our outlook for next year, we are very positive about the year and all the four AGMs we’ve held for all our four funds are very positive. We have been restructuring all the funds. We have had some resolutions to help us carry through with some initiatives. So, we are very positive that next year we’ll be able to improve our liquidity.
“We will be able to show more returns and we are also positive that the funds will become more attractive and then by so doing more investors will come into the fund,” the Chief Executive Officer of First Finance Company the Fund Managers of the Gold Fund Unit Trust, Mrs. Faustina Odoi-Agyarko assured.
