Accra , May 28, GNA – The Management of the HFC Unit Trust Fund on Wednesday declared a total income of GH¢ 9,566,852 for 2013, an increase of 70 per cent over GH¢ 5,633,712 in 2012.
The Fund grew its Total Investments on Assets from GH¢32,484,904 in 2012 to GH¢ 40,217,604 in 2013.
There was also an increase in Total Assets from GH¢33,572,706 in 2012 to GH¢ 42,849,652, representing a 27 per cent increase.
Mr Peter Larbi-Yeboa, General Manager of HFC Investment Services Limited, a subsidiary of HFC Bank (Ghana) Limited and Managers of the Trust, announced the figures at its 20th Annual General Meeting for 2013 in Accra.
He also indicated that the HFC Unit Trust closed the year 2013 with a yield of 23.07 per cent saying as a money market fund, this compared favourably with the 91-Day Treasury Bills performance for the same period, which yielded an average return of 21.92%.
During the period, Management expenses dropped from GH¢1,422,794 in 2012 to GH¢935,204, representing a 34 per cent decline in 2013, while Net Investment Income on the other hand appreciated by 105 per cent, from GH¢4,163,572 in 2012 to GH¢8,545,332 in 2012.
The Fund Value grew from GH¢35.53 million in 2012 to GH¢44.9 million in 2013, representing growth of 26 per cent in assets under management, while the total pool of investors in the Fund as at the end of 2013 was GH¢21,281 unit holders, representing an increase of GH¢1,175 new members over the 2012 closing figure.
He attributed the Funds performance in 2013 to the global economys slow recovery, the Eurozones gradual limping out of recession and generally the broad reversal of capital flows from the emerging markets and volatility in their currencies and equity markets.
The domestic markets, he said, were also beset with an array of challenges, including hikes in commodity prices on the world market, which impacted the countrys foreign exchange earnings.
Headline inflation which was significantly impacted upon by higher petroleum and utility prices ended the year 2013 at 13.5 per cent. This was above the inflation target of 9 per cent, he said.
On the outlook for 2014, Mr Larbi-Yeboa said the Fund Managers were excited by the impending growth of the money and debt markets respectively, as a result of the New Pension Scheme, together with associated new products and hoped these would help in improving the yields of the fund in 2014.
He, however, indicated that the weakened domestic fundamentals and the uncertainties in the economic outlook underscored the need for tight fiscal and monetary policies to sustain macro-economic stability, adding that, “the Fund would be carefully positioned, to take full advantage of any opportunities arising from policy direction.”
Both the Fund Manager and Auditors Reports were approved and adopted by the unit holders, who also approved and adopted the Chairmans recommendation that the Manager be given the authority to fix the Auditors remuneration for 2014.
In another development, the HFC Real Estate Investment Trust (REIT) recorded a growth in its total investments from GH¢18,498,738 in 2012 to GH¢23,385,644 in 2013, representing a 26 per cent increase.
Mr Larbi-Yeboa said during the year under review, the fund Total Assets appreciated by 45 per cent, rising from an amount of GH 19, 023,324 in 2012 to GH¢27,606,258 in 2013, and ended the year with a growth Net Assets of GH¢27,510,118 in 2013 as against GH¢18,768,711 in 2012.
He said in spite of the challenging economic environment and global market trends, the Fund managed to retain a yield of 23.1 per cent, considerably exceeding the average government bills and bond yields for 2013, and again managed to raise its Fund value by 48 per cent to close the year at GH¢27.9 million.
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