…recorded 24.89% return from fixed income instruments
CM Fund Limited, a subsidiary of the SDC Group has recorded an increase in its net income for the year 2017.
The fund recorded a total comprehensive income of GHS468, 828 last year, culminating in a return of 24.89 percent return as against GHS359, 050 in 2016.
The increase, management of the fund explained, was due to higher volume of money market investments, gains on stocks and dividend income during the year.
CEO of the SDC Capital Limited, Managers of the Fund, Mr. Clarkson Duku Acheampong, explained that last year’s performance of 24.89 percent, was driven particularly by returns from fixed income instruments.
“In spite of the remarkable performance of the GSE, we were cautious about venturing into the stock market as the year 2017 was considered the turning point of the GSE from its bearish behaviour to a bullish one. We therefore, sought out other high yielding fixed income investments to drive returns,” he explained.
The Fund also touted the change in its financial reporting last year, from using the Ghana National Accounting Standards (GNAS) to the International Financial Reporting Standards (IFRS) in the preparation of the Fund’s financial statements.
Going forward, management of the Fund hope to leverage on the expectations of an improved performance this year, as the yield on money market instruments fall and clients shift attention to the capital market.
In view of the above, Acheampong said the Fund intends to increase the equity holdings of the portfolio so as to maximize gains from the capital market.
“As a strategy to increase the Asset under Management (AUM), we are looking to expand the Fund’s collection vehicles. Key to this is the intent to capitalize on the mobile money interoperability which the BoG has proposed for implementation in the coming year,” he said.
With that arrangement, Acheampong noted that contributors will be able to make payments directly from their mobile money wallets and bank accounts in their CM Fund account.
By Wisdom Jonny-Nuekpe