…shareholders reassured of commitment to navigating market challenges
By Emmanuel AKOMEA
The National Trust Holding Company (NTHC) Horizon Fund has held its 15th Annual General Meeting. Shareholders have been reassured of the fund managers’ commitment to effectively navigate current market challenges.
The Investment Manager, Nii Tete Mama Akita, highlighted the fund’s balanced approach and disciplined investment strategy, emphasising the team’s dedication to minimizing the impact of adverse market conditions while capitalizing on growth opportunities. This assurance aims to bolster investor confidence amidst ongoing financial volatility.
The Annual General Meeting provided an opportunity for shareholders to gain insights into the company’s performance and future plans and was held to cover the period of 2022 to 2023.
A statement by the Chairman, Kenneth Vavator Acolatse, emphasised the impact of economic challenges within 2022 and 2023, adversely impacting the fund’s performance for the period under review.
Fund Performance from 2022-2023
Despite the unfavorable economic environment, the NTHC Horizon Fund reported steady returns for the years 2022 to 2023. The fund’s Net Asset Value (NAV) grew from approximately GHS 2.7million in 2022 to GHS 2.72 in 2023, marking a 0.69 percent increase.
According to the Investment Manager’s report, the fund’s Net Asset Value (NAV) has shown significant volatility throughout 2023. Starting the year at GHS about 2.7million in January, the NAV dipped to about GHS 2.4million by May.
However, the fund rebounded in September, reaching GHS 2.72 million —an increase of approximately 14.38 percent compared to the previous year.
This fluctuation can largely be attributed to stock market performance and the recent implementation of a mark-to-market policy in the fixed-income market.
While several stocks, including SCB, GCB, EGH, RBGH, SIC, and EGL suffered capital losses ranging from 4.35 percent to 9.90 percent, others like SOGEGH, TOTAL, UNIL, FML, and MTN saw substantial gains between 3.26 percent and 48.90 percent. The regulator’s directive to adopt mark-to-market valuation has also played a crucial role in influencing the fund’s overall performance.
The unit price of the NTHC Horizon Fund reflected these economic challenges. Beginning at GHS 0.6431 per share on January 1, 2022, it rose slightly to GHS 0.6691 by December 31, 2022—a modest increase of 4.04 percent. However, by the end of 2023, the unit price had dropped to GHS 0.5215, marking a significant decrease of 22.06 percent from the previous year and resulting in a negative year-to-date return of 22.07 percent.
During the review period, the fund saw a total of 27,707.68 new shares subscribed, valued at GHS 18,134.00, while redemptions totaled 166,679.05 shares worth GHS 107,101.98. Notably, all new subscriptions came exclusively from individual shareholders. In contrast, 2023 witnessed subscriptions of 42,210 new shares valued at GHS 26,088.00 against redemptions of 50,436 shares worth GHS 30,984.17.
The chairman expressed hope as the Bank of Ghana (BoG) is expected to adopt a cautious approach in adjusting the policy rate due to uncertainties surrounding the upcoming elections at the end of 2024 and other measures put in place to ensure the overall growth of the industry.
The Investment Manager commenting on the performance of the fund said “The fund’s performance is worthy of commendation as it navigates the current market volatility with a balanced approach.”
Strategic Plans for Future Growth
Looking ahead, the Investment Manager stated the NTHC Horizon Fund aims at enhancing its portfolio and expanding its capital base. The fund plans to continue to invest in treasury bills and shares, targeting stable and promising assets to bolster returns and minimize risk.
In addition to these investment moves, the fund is set to raise fresh capital from its parent company, NTHC Limited. This infusion of capital will support the fund’s growth initiatives and improve its financial stability.
Furthermore, he said the NTHC Horizon Fund is committed to fostering a culture of saving among the younger generation, therefore plans are in place to visit schools and engage with students, promoting financial literacy and the importance of saving from an early age.
