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Business News of Saturday, 25 July 2009

Source: GNA

GCS Gold Fund Unit Trust soaring high

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Accra, July 25, GNA - Gold Coast Securities Limited Gold Fund product, one of the best performing collective investment schemes in Ghana, grew by 74.28 percent in value in 2008, despite the global economic downturn.

The fund, the second unit trust to be established in Ghana after HFC Unit Trust, saw its value soared at GH¢3,653,487 in 2008 from GH¢2,096,321 the previous year. Addressing shareholders at the fourth Annual general Meeting in Accra on Friday, Mr Benn Kujar, the Fund Manager, said with a 62.18 per cent net gain on investment, the fund's total assets went at GH¢3,685,168 at the close of 2008.

The number of unit holders also increase by 47.74 per cent from 1,745 recorded in 2007 to 2,578 in 2008. Mr Kujar said by the 2008 feat, the Gold Fund Unit Trust had sustained its promise of maximising unit holders' wealth through consistent growth returning yields of 22.2 percent in 2006, 28.45 percent in 2007 and a staggering 37.99 per cent in the year under review.

On the market outlook coupled with the global economic downturn and falling equity prices, he said: "what is happening is a regular feature. It's a temporal situation that will turn around soon. "Besides, the balance sheets of most listed companies are stronger than they reflect in the share prices on the Ghana Stock Exchange (GSE)," Mr Kujar assured Gold Fund holders. He said the portfolio mix of the fund yielded a better return than all rates on Government of Ghana Treasury papers, an indication of better management of the fund and what the future holds. Mr Kujar further told holders: "The asset you hold is as good as gold and there is no reason to offload because this is rather the best time to invest."

He said even though the GSE where the fund invests a significant chunk of its assets is likely to continue in its decline of share prices, the company had strategize to diversify its portfolio of Gold Fund to include higher percentage of less volatile and less riskier investments. The fund is designed to achieve long-term capital appreciation by investing in both listed and unlisted equity securities of Ghanaian companies. 25 July 09

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