Sirius Opportunity Fund (SOF) has assured its shareholders that despite the economic challenges, the fundamentals of the economy are still strong and the nation’s medium-term prospects are bright.
Speaking on behalf of the board of the fund, Mr Michael Mba Allan noted that the economy was expected to grow by 7-8 per cent mainly on the back of oil and gas production, construction, agriculture, mining, cocoa and the services sector.
He said as government sought to control fiscal deficit through its focus on programmes that would increase revenues and minimise expenditure, SOF was hopeful it would translate positively by reducing interest rates for Ghana in the long term.
Mr Mba Allan disclosed this at the annual general meeting of Sirius Opportunity Fund (SOF) on August 1, 2014.
He indicated that the SOF was well placed to adapt to the new macro-economic circumstances and would continue to perform above the fund’s benchmark, which is government treasury bills and fixed bank deposits.
He also assured the shareholders that money market funds were still one of the most profitable investments to make in the country.
Financial performance
Mr Mba Allan also indicated that the price performance index of the fund was impressive in 2013.
He said the fund, which opened in May 2013 with a share price of 0.50 pesewas, ended at 0.57 pesewas as of December 31, 2013.
“This shows a gain of 14 per cent for just the half year of 2013 and it indicates that the fund performed better than its benchmark market instruments— the Government of Ghana Treasury Bill.
He also pointed out that to ensure ease of fund and increase in patronage, the fund introduced the Zenith Bank Ghana Direct Debit Platform to clients.
The platform allows the clients to directly transfer funds from their accounts into the Sirius Opportunity Fund.
“There were a few hitches that resulted in a shortfall of funds receivables on the platform but as a result of some interventions, these were resolved and since then the fund has optimised the use of the platform which has significantly improved fund mobilisation,” he added.
Securities industry growing
Mr Mba Allan also noted that the investment industry had grown over the years from a virtually non-existent industry to a period of market reforms aimed at moving the financial sector from an era characterised by controls to a market-based regime.
He said at the end of 2013, there were approximately 197 industry players which included 20 mutual funds, 16 unit trusts, 24 broker dealers and 90 fund managers, among others.
According to him, total funds under management as of December 2013 amounted to GH¢3.7 billion, compared to GH¢2.8 billion at the end of 2012, with more than half of the investment in money market instruments.