Databank Records High Return

Data Pix 1Databank’s Money Market Fund (MFund) recorded an annualised yield of 22.11 per cent at the end of the 2013 financial year, the second highest annual return since its inception in 2004.

Mr. Keli Gadzepko, Chairman of Databank’s MFund, announced this at the 10th Annual General Meeting (AGM) of the fund in Accra yesterday said the high interest rate environment boosted the returns.

“Interest rates remained at high levels for the first half of the 2013 before trending down in the second half of the year” he said.

According to Mr. Gadzepko, the MFund’s total assets under management increased by 22 percent in 2013, from GH¢85.99 million in 2012 to GH¢105.25 million in 2013.

He said it outperformed the 91-day Treasury bill which posted an average annual yield of 21.94 per cent, and an end period outturn of 19.22 per cent.

The Chairman assured investors that the bank would hard to ensure that the fund continues to deliver competitive returns for them in 2014.

The Manager of the Fund, Mr. Sampson Akligoh, said the MFund performance in 2013 showed a strong recovery from the 2012 outturn when its yield lagged its benchmark government security.

He attributed the banks performance to steps it took to rebalance the portfolio for 2013, mainly by increasing the certificates of deposit with the commercial banks.

He said the fund also improved on its market risk analysis for making placement decisions, which helped during subsequent interest rate declines on government securities.

“We are committed   to making the fund the best structured fixed income portfolio in the market over the coming years, which would position us to be nimble when adverse interest rate shocks occur,” he said.

The MFUND which has over 80,000 investors seeks to provide high current income consistent with the maintenance and preservation of capital.

It offers superior returns on savings to Ghanaians and also enables industry to access cheaper sources of credit to meet their short to medium term financial need.

By Linda Aryeetey    

 

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