Sirius Opportunity Fund records 51% growth
Revenues of the Sirius Opportunity Fund, an open-ended money market mutual fund, grew to GH¢239,927 in December 2015 after ending 2014 at GH¢158,037.
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This represented a 51 per cent rise within the 12-month period.
At the company’s third Annual General Meeting (AGM) in Accra, a Director of the fund, Mr Michael Mba Allan, said although 2015 was characterised by challenges in the general economy, the fund continued to perform incredibly well, closing the year with an impressiverecord.
The fund’s assets also rose to GH¢1.4million, representing over 50 per cent rise over the 2014 close of GH¢910,734.
The Director said the total number of clients on the fund as at the end of 2015 was 1,205, representing about 19 per cent increase.
He explained that the net asset value (NAV) of the fund started at 0.69588 but enjoyed an average month-on-month growth rate of 2.06 per cent in 2015, with the month of February recording the least growth rate of 1.65 per cent. December saw the highest growth rate of 2.86 per cent.
The share price maintained a steady growth throughout the period under review until it closed the year with a price per share of 0.8881.
This represents an annualised yield of 27.64 per cent, well above the benchmark rate oof the one year treasury bill, which averaged 23 per cent in 2015.
Market review
An overview of the treasury market in 2015 showed a switch in investors’ preference to shorter term investments in relation to the long term. This accounted for the increment in rates on the periodic front.
There was generally an improved performance with the exception of the one year note, which recorded a shortfall in comparison to what was experienced in the previous year.
The 91-day, 182-day and one year note averaged 24.9 per cent, 25.75 per cent and 22.5 per cent respectively as against the previous year’s averages of 24.10 per cent, 23.61 per cent and 23 per cent respectively.
The treasury market’s performance continued to attract and present investment opportunity for money market products, as rates remained generally on the high side.
The Sirius Opportunity Fund’s benchmark, which is the one year T-bill, started at 22.5 per cent and remained in the 20 per centile range for the most part of the 2015. It, however, dropped to a year low of 23 per cent in December 2015.
The 182-day bill, on the other hand, started the year at 26.41 per cent and also remained steady between the 25 and 26 per centile range. It, however, closed the year with a slight drop to 24.45 per cent.
Outlook
Going forward, Mr Allan said the fund would look at minimising risks and investing in high-yielding, medium to long term securities that will offer the best returns to clients.
The Chief Executive Officer of Sirius Capital Limited, Mr Franklin Benefo, lauded the impressive performance of the fund and encouraged shareholders to invest more to secure their financial future.
He explained that the fund manager would adopt several strategies, including the continous repackaging of Sirius Opportunity Fund, to make it gain more recognition among institutional clients.
