By Elizabeth Punsu, Kumasi
NGIS Money Market Fund PLC has recorded another robust performance with a 51.23 percent increase in net investment income for the year ending 2023.
The Fund posted a gross investment income growth of 38.14 percent increasing from GH₵863,956 in 2022 to about GH₵1,193,500 in 2023. This notable growth is attributed to a marginal rise in interest rates on money market instruments.
Despite this success, administrative expenses also saw a sharp increase of 69.47 percent, jumping from GH₵43,432 in 2022 to GH₵73,606 in 2023. However, the Fund still achieved a significant increase in net investment income, from GH₵734,880 in 2022 to GH₵1,111,368 in 2023, reflecting a 51.23 percent growth.
Presenting the Fund Managers report, at the 5th Annual General Meeting (AGM) of shareholders in Kumasi, General Manager, Edward Asamoah, revealed that total liabilities for the year rose by 4.97 percent, amounting to GH₵62,026.
He also highlighted that redemptions, increased by 11.41 percent, from GH₵2,305,306 in 2022 to GH₵2,568,416 in 2023, while the sale of shares dropped by 25.18 percent, from GH₵2,895,781 to GH₵2,313,247. The Fund’s Net Asset Value per share saw a healthy rise from GH₵1.67 to GH₵2.01, delivering an annual yield of 20.35 percent.
Mr. Asamoah outlined the Fund’s portfolio, which included GH₵236,795 in cash and equivalents, GH₵5,569,315 in short-term investments, GH₵610,792 in medium-term investments, and GH₵1,501,806 in other assets.
Outlook for 2024
According to Mr. Asamoah, the country’s economic growth is expected to slow in 2024, forecasted at 2.8 percent, amid ongoing fiscal contraction and macroeconomic uncertainties. He added that High interest rates and cautious private spending could limit expansion, but the manufacturing sector’s resurgence and planned rate cuts offer some hope. The cedi is expected to remain stable, bolstered by inflows from the IMF’s Extended Credit Facility and other partners.
The government’s reliance on domestic borrowing is set to keep Treasury bills as a key player in the fixed-income market. Headline inflation is projected to decrease, which could bring interest rates down. A gradual recovery of the bond market is anticipated, although a full return to pre-Debt Exchange Program (DDEP) levels may take time.
Mr. Asamoah, therefore, encouraged investors to increase their stakes in the Fund, noting that its strong performance and optimistic outlook make it a valuable investment opportunity for 2024.
Chairman’s Remarks
Chairman of the Board, Prof. Kwaku Kessey, emphasised the positive impact of the country’s 2023 economic recovery on the Fund’s performance. The Fund’s net investment income grew by 51.23 percent, and management expenses increased by 37.32 percent, from GH₵209,582 in 2022 to GH₵287,806 in 2023. The Fund’s Net Asset Value rose to GH₵6,616,674, marking a 14.86 percent increase from the previous year’s GH₵5,760,473. This translated to a per-share value increase from GH₵0.89 to GH₵1.07, yielding 20.22% annually.
On the global front, the IMF forecasts 3.2% global economic growth in 2024, supported by resilience in the U.S., emerging markets, and fiscal support from China. Global inflation is expected to decline, though risks from geopolitical tensions and supply disruptions remain.
Prof. Kessey, further, reaffirmed the Fund’s commitment to maintaining liquidity and protecting capital. He then urged shareholders to continue placing their trust in NGIS Money Market Fund PLC for long-term growth.
“We are deeply appreciative of your continued confidence in the Board of Directors and the Fund, and we remain dedicated to identifying and capitalizing on investment opportunities that will enhance the growth of the Fund,” Kessey stated.
