Stanbic Income Fund Trust assets increase by 26 per cent

Stanbic Income Fund Trust (SIFT) recorded a net assets of GH¢5.96 million in 2013 as against GH¢4.75 million in the year 2012, representing an increase of 26 per cent.

Out of the amount, 50 per cent was invested in government notes, 21 per cent in corporate notes at a weighted average return of 22.9 and 25.1 per cent respectively.

Mr Kwabena Boamah, Portfolio Manager of the Fund, announced these at the fund’s Annual General Meeting in Accra on Thursday.

He said the Fund also made a net return of 22 per cent in 2013 better than that of 2012, which was 16 per cent with a normalized return of 22 per cent and a three-year return of 71 per cent from inception.

Mr Boamah said returns were driven by investments in the secondary market within the fixed income asset class, adding that net investment gain in 2013 grew by 62 per cent to GH¢1.1 million from GH¢0.68 million while total ratio declined from 2.34 per cent in 2012 to 2.3 per cent in the year 2013.

The Portfolio Manager said the economic outlook for 2014 was weak, as the twin deficits burden maintained a destabilizing influence on positive economic outcomes.

“These deficits have fueled inflation, and a key challenge will be to put the brakes on increasing wage expectations and by extension even higher inflation.

“It is anticipated that the first half of the year would see a significant upward movement in interest rates which may remain stable in the second half of the year as Bank of Ghana works to improve the economic situation of the country,” Mr Boamah added.