Unisecurities Unit Trust (UUT), managed by First Finance Company, has held its 6th annual general meeting in Accra to provide an overview of the Trust’s performance and seek shareholders’ approval for various measures and actions to turn around its fortunes. The AGM took place last month.
Unisecurities Unit Trust, an open-ended unit trust scheme, seeks to maximise total returns by emphasising current income and, to a lesser extent, providing an opportunity for capital appreciation. It achieves its investment objectives by participating primarily in a diversified portfolio of fixed-income securities.
Portfolio performance
UUT recorded a slight improvement of its performance in 2022 despite 70 percent of total funds under management being under receivership.
The fund recorded a year-to-date return of 2.95 percent for 2022 as compared to the benchmark return of 23.44 percent – which is the average return on 91-day Treasury bills.
Cumulatively, from inception unit holders also recorded a 7.86 percent return on their investment at the end of 2022 financial year.
On fund price and returns, the price per share increased to GH¢1.0786 at the end 2022, up from GH¢1.0477 during the same prior in 2021.
Also, total assets under management (AUM) at the end of 2022 stood at GH¢5.57million; representing a 3.3 percentage growth from the year 2020. Total number of units outstanding ended 2022 and 2021 at 5,031,899 while 2020 closed at 5,225,080.
Operational environment
The Fund Manager of Unisecurities Unit Trust, Ezekiel Koranteng, stated that the global economy in 2022 faced numerous shocks, such as rising inflationary pressures, which eroded household purchasing power and dimmed hopes of economic recovery – amid aggressive policy tightening as well as spillover effects from the geo-political tension between Russia and Ukraine. These, among other factors, hampered economic activities especially in advanced economies. Emerging markets and developing economies were also faced with tighter global financing conditions in the capital markets, as well as weaker external demand.
However, with the fund recording a 3.3 percentage growth in total assets under management at the end of 2022 financial year, the portfolio is poised for further growth to achieve competitive returns for shareholders when approval is given for new subscriptions.
Outlook
CEO-First Finance Company, Faustina Odoi-Agyarko, alluded to the lingering uncertainties surrounding the country’s debt restructuring programme and exchange rate volatility which pose downside risks to the short-term economic outlook.
Given these economic challenges, the fund anticipates a persistent upward trend in interest rates; leading to increased yields on government securities and necessitating additional adjustments to government’s debt landscape.
Board Chairman-First Finance Company, Mr. Michael Asa-Eck, also noted that they foresee enhanced investor confidence as they are employing measures to make the fund the most preferred investment option.
“While capital market activities are expected to be subdued with a mixed performance due to unfavourable global and domestic economic indicators, ongoing government debt realignments may create opportunities for medium- to long-term growth at attractive prices.
“We expect the fixed income market to bounce back after final completion of the debt restructuring programmes. We will continuously monitor the yield curve and take advantage of high-yielding securities in the fixed income and equity markets to improve returns with an eye on minimising the downside risk,” the financial report reads.
The AGM also saw a change in the Trust’s name – from Unisecurities Unit Trust to First Finance Money Trust.
