The CDH Balanced Fund says it is poised for an even stronger performance in 2017, following the impressive return recorded in 2016.
The Fund recorded a return of 32.96 per cent compared with an annualized return of 30.68 per cent in 2015, outperforming the benchmark Treasury bill, the Ghana Stock Exchange indices, other investment vehicles and delivered returns over the rate of inflation.

Funds under management grew by 73 per cent during the period to GHC1.90 million from GHC1.09 due to a very impressive marketing and outreach effort by the Fund managers.
Mr Emmanuel Adu-Sarkodee, Chairman of CDH Balanced Fund, said the strategy of the Board remained focused on growing the Fund in 2017.

“We will continue to build an investment portfolio that is structured to ensure financial stability for the medium to long term for shareholders,” he said at the Annual General Meeting of the Fund. Mr Adu-Sarkodee said the management of the Fund was committed to moderate to low risk instruments that deliver good returns in the medium term.

He said in the face of declining interest on fixed income securities, the Fund would adopt sound research to see the mix that would deliver the best results for the shareholders.
The CDH Balanced Fund, in line with its strategy, held fixed income instruments consisting 98 per cent of the total funds under management in 2016. Investments in equities accounted for less than two per cent of funds.

He said the decisions of the Fund were backed by comprehensive research and the look at the mitigation measures from the research would determine the balance to use in the best interest of the shareholders.

Mr Seth Aryitey, Executive Director, CDH Asset Management Limited, said the Fund expected to post another impressive returns for shareholders in 2017 as the stock market recovers from two years of decline in value in line with a more stable macro-economic position and the anticipated recovery in the country’s growth prospects.

“We will therefore seek to diversify into more equities, focusing on picking up bargain buys that pay good dividends and are expected to post significant capital gains. The progress towards a more balanced fund with a well constituted portfolio will continue to be the focus of the Fund Manager,” he said.

Mr Aryitey said the Fund would continue to grow the number of shareholders across the country and encouraged shareholders to invest more to enjoy high returns.
The directors of the Fund waived their fees in order to reduce the cost of running the Fund.
GNA