Databank’s funds yield up

Databank Asset Management Services Limited witnessed strong performance and growth in the 2013 operational year with all four funds—Epack, MFund, BFund and Ark Fund—posting impressive returns on investments and an increase in assets under management.

Long-term collective investment fund, Epack recorded 84 percent returns on investments and grew its assets under management from GH¢54.3 million in 2012 to GH¢95.6 million, while the Balanced Fund (BFund) returned 53.8 percent on investment with total asset under management standing at GH¢9.9 million from GH¢4.9 million in 2012.

MFund, which is a money market fund that seeks to provide high current income consistent with the maintenance and preservation of capital for shareholders, posted an annualised yield of 22.11 percent—the second highest performance since its inception ten years ago—outperforming its major benchmarks, the 91-day treasury bill and savings rate.

The Fund’s asset under management grew by 22 percent, ending the year at GH¢105.25 million, on the back of strong performance and growth in the number of shareholders as well as inflows.

Databank’s ARK Fund, a long-term mutual fund which seeks to achieve capital growth and income by integrating social, ethical and environmental considerations in the investment process, also posted a return of 47 percent at the end of 2013, grew its shareholder base by 1.1 percent and also soared its managed assets by 54 percent to over GH¢4 million from a previous GH¢2.6 million.

Chief Investment Officer of Databank Asset Management Services Nii Ampa-Sowa, in an interview with B&FT, on the sidelines of this year’s annual general meeting for all the four funds, in Accra, attributed the sterling operational performance to an increase in investments in higher yielding and fixed income securities coupled with high interest rates.

He said the funds will be managed to generate risk-adjusted returns to create value for shareholders and, for that matter, management will focus on short-term fixed income securities with a maximum of one year duration to guard against risks.