Business News of 2013-12-24

Gold Fund recovers from sluggish performance

The Gold Fund Unit Trust (GFUT) recovered from a sluggish performance in 2011 to post high returns on investments in 2012.

The unit price of the fund increased from 0.1099 pesewas that it closed 2011 at to 0.1281 pesewas by December 31 last year.

That represented an annual growth of 16.59 per cent. These came to light at the annual general meeting of the fund held on December 12.

The Fund Manager of GFUT, Mr Nana Kweku Nduom, said at the AGM that the reversal of the funds had given investors reasons to keep their investments with it.

“The expertise and ingenuity of the manager ensured that the portfolio mix yielded 16.59 per cent return, which was better than the one posted in 2011”, he added.

He disclosed that the fund’s net asset value was made up of GHc1.58 million in stocks and GHc1.4 million in short-term instruments.

Mr Nduom also stated that total issued shares of the fund at the beginning of 2012 was GHc30.8 million but rose to GHc19.53 million at the end of December 2012. That represented a change of 36.64 per cent, he added.

On the investment mix of the fund, Mr Nduom said the GFUT at the end of the year had invested 26.77 per cent of its funds in the banking sector, 3.28 per cent in the financial services sector, 14.61 per cent in food and beverages, 3.59 per cent in manufacturing and 14.89 per cent in the petroleum industry.

“This implies that 63.13 per cent of the portfolio is equity based, with the remaining 36.87 per cent invested in net of payables short-term but high yielding investments to cater for the liquidity,” he added.