CDH Balanced Fund posts 18% returns as directors waive fees
Directors of the CDH Balanced Fund, an open-ended mutual fund, have decided to waive their fees for two years to enable the fund, which has been structured to absorb low income earners, to grow its size and returns.
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A year since the balanced fund was launched in June 2015, the asset managers have also kept a low expenditure profile in order to encourage investors with a good return on their funds.
Subsequently, the fund has a returned 17.57 per cent in the first seven months (June – December 2015) of operation, increasing the fund size from GH¢800,000 to GH¢1 million at the close of last year.
“As much as possible, if you are not very careful and always consider self-interests, you will end up eroding the fund. But that is not our intention; it is to help the average Ghanaian grow out something. So that at the end of the day the small drops of GH¢5 or GH¢10 regular investments can contribute to the overall efforts to alleviate poverty,” Mr Seth Aryitey, the Fund Manager, told the Daily Graphic shortly after the annual general meeting of the CDH Balanced Fund.
He said the primary aim of the fund was to encourage investments and savings culture, which has informed the fund managers to be cost conscious.
“We believe that if the fund grows, directors and fund managers can take something. But for a start, we believe we must grow the fund and get value to encourage everybody to come on board,” Mr Aryitey stated.
Outturn and outlook
The CDH Balanced Fund aims at providing a medium to long-term growth in income by investing in a combination of fixed income instruments and equities listed on the Ghana Stock Exchange. The 17.57 per cent return on the fund is higher than the negative 11.8 per cent that the GSE composite index posted for last year.
Going forward, Mr Aryitey, who is also the Executive Director of CDH Asset Management Ltd, the fund managers, said the fund was poised for a more stellar performance by the close of the year, given that the country’s economy had started to pick up again.
“The economy of Ghana is expected to improve from the second half of 2016 and this shall have an impact on the performance of shares listed on the Ghana Stock Exchange, as investors seek to pick up value stocks at bargain prices,” he stated.
Board chair upbeat about future
The Board Chairman of the CDH Balanced Fund and Group CEO of CDH Financial Holdings, Mr Emmanuel Adu-Sarkodee, said the fund managers would deploy a sound strategy to enhance the status of the CDH Balanced Fund in 2016.
Mr Adu-Sarkodee gave an overview of Ghana’s economy and stock market in 2015 and the outlook for the year 2016 and the fund’s performance as well as its prospects for the future.
“Our goal is to build a well-structured investment vehicle that will ensure that we are able to meet your medium-to-long-term financial return expectations. The manager of the fund is committed to a wise investment strategy that focuses primarily on excellent returns,” he said.
He added that the CDH Balanced Fund was poised to take the leadership position among balanced funds in the country, as the fund manager would continue to deploy investment strategy for the next half of the year based on comprehensive research and knowledge of the industry.
About the Balanced Fund
The CDH Balanced Fund is an open-ended mutual fund aimed at investing primarily in traded securities as well as fixed income instruments.
The fund has the prime objective of preserving and enhancing shareholders’ wealth to meet medium-to-long-term financing goals, while creating liquidity to meet short-term needs.
