Stanlib’s SIFT and Cash Trust outperform benchmarks

Stanlib Ghana Limited’s investment Funds have recorded significant growth for the year ended December 31, 2016 with its assets growing to GH¢ 24.4 million and 21.7 million cedis for the Cash Trust and Income Fund Trust.

Returns on both funds also outperformed the benchmarks set for the year under review, as has been the case since 2013.

Speaking to the GNA after the Funds’ 6th Annual General Meetings, held in Accra on Friday, Mr Emmanuel Alex Yaw Asiedu, Managing Director of Stanlib said the company was happy with the results, as it had been able to sustain its growth over the years.

“It is growth that you can actually see, not the kind that you pick from elsewhere.

“It is solid growth and we are happy with it,” he said.

The Stanlib Income Fund Trust (SIFT)’S assets for the year under review grew by 43 per cent to GH¢ 21.7 million, a feat, which Mr Asiedu attributed to a number of factors, including buy-in into Stanlib’s success, good governance structure, brand strength and investment team.

He noted that the certainty associated with Stanlib’s investment products allowed people to move their investments to Stanlib where there was clear return attribution.

Mr Asiedu said Stanlib’s tactic was to do fundamental research to know, which direction the general economy and interest rates would go so as to identify the appropriate assets that would give the right yields.

He added that the company would ensure that investors’ funds were safe, even if it did earn very high returns in the immediate term.

The Stanlib Income Fund recorded a net return of 26 per cent, against a benchmark of 23 per cent.

Investments in long term instruments were increased in anticipation of interest rate declines, with bonds making up 53 per cent of fund assets, 39 per cent in money market instruments and eight per cent in cash and near-cash securities as at end 2016.

“SIFT, for the fourth year running, outperformed its benchmark with full year returns of 26 per cent compared to a benchmark return of 23 per cent.

“This translated to full year distributable earnings growth of 54 per cent to GH¢ 3.9 million,” stated Mr George David Allotey, Fund Manager for SIFT.

He said the fund, which was a medium to long term fund benchmarked at an average of a one or two-year government of Ghana bond, was on course to achieve its objectives for the current year.

While they did not expect to be able to get yields like those recorded in 2016 due to decline in interest rates, the fund was currently at around 22.4 per cent, he said.

Mr Allotey said the Fund’s strategy, going forward, was to keenly monitor the yield curve to achieve competitive returns for its clients.

Ms Brenda Kissi, Fund Manager for the Stanlib Cash Trust sad the fund, in the year under review, returned 25 per cent, 300 basis points (three percentage points) above the 22 per cent benchmark.

“Net investment income distributed in the year also grew by 240 per cent to GH¢ 4.19 million in 2017 from GH¢ 1.7 million the previous year, but added that decline in interest rates on the short end of the market impacted the returns of the Fund in 2016, compared to 26 per cent in 2015.