SIMS Outperforms its Fund Benchmarks for 2020
Multi-specialist asset manager, Stanbic Investment Management Services (SIMS), outperformed its benchmarks for the two funds the company manages, the Stanbic Cash Trust (SCT) and Stanbic Income Trust Fund (SIFT). This was announced at the company’s 2020 Annual General Meeting (AGM) held on Friday, July 2 at the Stanbic Heights in Accra.
The Fund Manager for the SIFT, George David Allotey, attributed the strong performance of the fund to the company’s tactical allocations in the year under review. “SIFT’s assets grew by 56% to GHS 366million in 2020. Investments in medium term government treasuries, cash and near cash securities were increased. Bonds made up 67% of the Fund’s assets, with 27% invested in money market instruments and 6% in cash and near cash securities as at the end of 2020,” Mr. Allotey said.
“The full year return for 2020 was 18.1%, ahead of its benchmark of 17.4% by 70-basis points. SIFT’s full year distributable earnings grew by 74% to GHS 50.5 million. The fund’s performance is attributed to comparatively higher rates in corporate bonds and the tactical allocations into medium term tenors,” he added.
The Fund Manager for the SCT, Brenda Kissi, when reporting on the Assets under Management (AUM) for the company mentioned that “AUM as at the end of 2020 were GHS463m, up from GHS265m in 2019. This represented a year-on-year growth in assets of 74%, with earnings contributing 25% to the growth. SCT had about 86% in Government and Quasi- Government securities and 8% of assets in other money market instruments as at the end of 2020.”
She added that “The full-year return for 2020 was 16.85%, 265 basis points above the benchmark return of 14.20%. The tactical positions taken in high yielding government 6-month and 1-year papers accounted for the outperformance of the benchmark. Net investment income for the year increased by 25% to GHS51m from GHS38m in 2019.”
SIMS Ghana Limited is a multi-specialist asset manager that connects retail and institutional clients with multiple investment opportunities across asset classes and markets. The company manages two funds, the SCT and the SIFT. The SCT is an open-ended unit trust fund. The primary objective of the Fund is to maximize short term income while preserving capital through investing in a portfolio of money market securities including treasury bills, fixed deposits and certificate of deposits and debt securities with maturity not exceeding 13 months.
The SIFT is an authorized unit trust as defined in the Unit Trusts and Mutual Funds Regulations, 2001 (L.I. 1695). The Fund offers and redeems units to subscribers and from unit holders respectively on an ongoing basis. Units are sold and redeemed at a price computed in accordance with the terms of the scheme particulars. The primary objective of the fund is to maximize short term income as well as long-term sustainable income and capital appreciation of its assets, through investing in a portfolio of fixed income securities including government treasury bills and notes, fixed deposits and other corporate debt securities.