The Managing Director of Stanbic Investment Management Services LTD (SIMS), Kwabena Boamah, has described the current economic climate as a good time for Ghanaians to invest, particularly in the Stanbic Income Fund Trust.
His remarks came during an interview following SIMS’ unit trust funds 2024 Annual General Meeting (AGM), held on July 22 in Accra.
Mr. Boamah emphasized that the Stanbic Income Fund Trust is strategically positioned to deliver medium to long-term value, especially as bond prices remain low. “This is truly the best time to be investing in the Income Fund if you’re looking at appreciation over the medium to long term. Bond prices are currently lower than before, which presents a strong upside for investors”, he said.
He further explained that SIMS is refining its investment strategy to better align with client goals. Short-term investments will be directed to the Stanbic Cash Trust, while the Income Fund will focus exclusively on medium to long-term growth.
“The Cash Trust is a money market fund. It is short term and not exposed to price volatility. The Income Fund, however, takes strategic positions in bonds to deliver better returns over a longer horizon,” Mr. Boamah noted.
The AGM, attended by unitholders, trustees, portfolio managers, and key stakeholders, showcased a robust recovery in both of SIMS’ flagship funds – Stanbic Cash Trust (SCT) and Stanbic Income Fund Trust (SIFT).
The Stanbic Cash Trust posted a Net Investment Gain of GHS 108.57 million, a sharp turnaround from the GHS 25.76 million loss recorded in 2023. Its total net assets nearly doubled to GHS 773.15 million, while the number of unitholders rose to 19,507. The fund’s bid price per unit appreciated from GHS 5.6584 to GHS 7.4767.
Similarly, the Stanbic Income Fund Trust recorded a Net Investment Gain of GHS 74.84 million, recovering from a GHS 78.32 million loss the previous year. Total net assets increased to GHS 476.25 million, and the unitholder base grew from 11,543 to 12,734. The bid price per unit rose from GHS 7.3447 to GHS 9.3267.
Mr. Boamah attributed the strong performance to SIMS’ disciplined investment approach and gradual uptick in bond prices. “We have played on the short-end for higher yields but with the declining interest rate environment, we are extending the tenors to 182 days and a year; so our clients can benefit from higher yields before experiencing the sharp interest rate declines” he said.
While acknowledging the increasing regulatory demands, Mr. Boamah stressed their importance in building a safer and more transparent investment environment. “There are more responsibilities on us to understand our clients better – matching their investments to their risk profiles and financial personalities,” he said.
Looking ahead, Mr. Boamah reaffirmed SIMS’ commitment to transparency, discipline, and long-term value creation. “Our goal is to make the investment journey clear and intentional for our clients. Whether they are seeking short-term returns or building wealth over time, SIMS has the right solutions and expertise to help them succeed,” he added.
