The Republic Wealth Trust Fund demonstrated remarkable resilience in 2023, navigating through a turbulent financial landscape marked by bond price volatility and interest rate fluctuations.
Despite these challenges, the fund managed to grow its net value by 23.61 percent, reaching GH₵ 8.69 million by year-end, up from GH₵ 7.03 million in the previous year.
Madeline Nettey, CEO of Republic Investment, presented these findings during the fund’s annual general meeting, highlighting the fund’s performance and strategy.
“The Fund demonstrated the resilience of the deployed investment strategy by generating a yield of 14.54 percent and 5.78 percent for Republic Wealth Trust SC and Republic Wealth Trust respectively,” Ms. Nettey reported.
The fund’s success can be attributed to its adaptive approach in response to market conditions. Following the Securities and Exchange Commission’s directive in October 2022 on valuation methods, which initially depressed unit prices, the fund manager created a sub-fund to cushion investors against further volatility.
“The goal for the setup was to ring-fence returns on new deposits,” Ms. Nettey explained, emphasizing the fund’s commitment to protecting unitholders’ interests.
The fund’s portfolio was strategically diversified to mitigate risks while optimizing returns. As of December 2023, government securities accounted for 59.26 percent of the main fund’s portfolio, with fixed deposits and local government bills making up 23.54 percent and 17.19 percent respectively. The sub-fund, Republic Wealth Trust SC, allocated 34.38 percent to fixed deposits and 64.28 percent to T-Bills, capitalizing on the attractive returns of short-dated sovereign securities.
For 2024, the fund manager anticipates continued market uncertainty, particularly given the upcoming election year in Ghana.
Ms. Nettey outlined the fund’s strategy, stating,”We shall continue to keenly monitor the market and take advantage of opportunities while sustaining our efforts to moderate risk factors that can adversely affect your investments.”
The fund plans to maintain a balanced approach, focusing on high-quality securities while exploring opportunities in corporate bonds and alternative investments for potentially higher returns.
Ms. Nettey expressed gratitude to the unitholders for their continued support during challenging times. “Your good faith deserves a more sustained return on your investments, and we aim to achieve same,” she stated, encouraging investors to set up standing orders and direct debits for contributions to the sub-fund account.
With a cautious yet optimistic outlook, the fund aims to navigate the complexities of Ghana’s financial market while striving to deliver value to its 931 unitholders.
The fund’s performance in 2023 and its strategic planning for 2024 reflect a commitment to adaptability and prudent risk management in an ever-changing economic landscape.
