CDH Balanced Fund reports 100% return in 3 years

BY: Emmanuel Bruce
• Mr Emmanuel Adu-Sarkodee (middle), the Board Chairman for CDH Balanced Fund, flanked by Mr Seth Aryitey, the Executive Director, CDH Asset Management Ltd., and Mr Benjamin Apeakorang (right), Board Member, CDH Balanced Fund
• Mr Emmanuel Adu-Sarkodee (middle), the Board Chairman for CDH Balanced Fund, flanked by Mr Seth Aryitey, the Executive Director, CDH Asset Management Ltd., and Mr Benjamin Apeakorang (right), Board Member, CDH Balanced Fund

CDH Balanced Fund has recorded a 100 per cent return on investment to shareholders of the fund over a three-year period.

The fund, which started at a share price of 0.10 pesewas per share three years ago, closed 2017 at 0.21 pesewas per share.

As of September 2018, share price of the fund stood at 0.24 per share.

The fund also recorded an annualised return of 30.86 per cent, 32.96 per cent and 33.69 per cent in 2015, 2016 and 2017, respectively.

This was disclosed at the 3rd Annual General Meeting (AGM) of the CDH Balanced Fund in Accra.

The Board Chairman of the fund, Mr Emmanuel Adu-Sarkodee, said the funds under management also moved from GH¢1.90 billion in 2016 to GH¢3.71 million in 2017, representing an increase of 97.53 per cent.

He attributed the performance of the fund to the strategic direction of the board of the fund, as well as sound fund management practices of the fund manager.

“Notwithstanding the macro-economic headwinds experienced in the country in 2017, we ensured that the fund was largely insulated from the effects by determining a new approach to fund management, marketing and outreach to enhance the growth of the fund and increase shareholders’ value,” he stated.

Thriving despite banking crisis

Responding to concerns about the strength of the CDH Balanced Fund to survive the seeming banking crisis, the board chairman assured current and potential shareholders that the fund was under strong management.

“The directors are giving you a full assurance that your fund is and will always be in good condition.

 There’s no cause for alarm. We are operating according to law, regulations, prudential requirements and industry standards,” he assured.

“We are aligned to our responsibilities as directors and will continue to do so. Your investment is safe financially, and safe with regard to corporate governance,” he added.

Way forward

The Managing Director of the CDH Asset Management Limited, Mr Seth Aryitey, for his part, said the company would continue to deploy very prudent management strategies to position the fund as a safe haven for its shareholders and the investing public.

“The fund will continue to chart the course of delivering good returns to shareholders in 2018,” Mr Aryitey said.

He said the fund would continue to increase the proportion of its equity holdings, picking up bargain buys that had good fundamentals.

“The fund will post significant capital gains and good dividend payout as the portfolio gradually moves from a conservative mix towards a more balanced fund,” he noted.

He said the fund also expanded its investments from three equities in 2016 to 11 listed stocks in 2017 and held fixed income instruments consisting 73.8 per cent of the total funds under management in 2017, while investments in equities accounted for less than 26.2 per cent.

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