UMB Balanced Fund record positive growth in 2017

Edem Nutakor, (second from left) addressing shareholders at the event
  • realized 29.14% growth last year against 17.09% in 2016

The UMB Balanced Fund, in 2017, recorded a growth of 29.14 percent, comparatively better than the 17.09 percent growth attained in 2016.

The Fund grew to GHS 4,061,115 at the end of 2017, from GHS 1,225,230 in 2016, with the number of issued shares also increasing to 19,455,136 in 2017 from the 7,708,644 in 2016.

The increase, management of the Fund explained, was mainly due to significant contributions by corporate institutions which contributed to 231 percent growth in Assets under Management.

“In line with the Fund’s objective and strategy, investments were made across the financial market with money market placements dominating the Fund’s portfolios. In light of the sustained improvement in the performance of the stock market in 2017, we restructured the portfolio by increasing holdings in equities, thus optimizing returns on the stock market,” UMB Balanced Fund Manager, Mr. Edem Nutakor explained at the Fund’s 4th AGM in Accra.

The decision, he indicated, enabled the Fund to return the 29.14 percent for investors, which is moderately better than that of 2016, and the 15 percent yield on the 1-Year Note, adding; “we will continue to invest in quality securities, backed by strong research and wide ranging considerations to ensure maximum shareholder value.

Asset allocation of the Fund as at December last year, had 13 percent of portfolios in equities listed on GSE with the remaining 87 percent invested in Fixed Income Securities in general. Fixed Deposits accounted for 85.90 percent, while BoG bonds made up 0.22 percent and cash represented 0.66 percent of the portfolio.

As of June 2018, the Fund has accrued over GHS8 million, aiming to reach more than the GHS12 million target it has set, by the end of this year.

“We want to continue to consider opportunities that will enable us to achieve growth in income, while conserving the principal investment of our shareholders,” Nutakor said.

By Wisdom Jonny-Nuekpe