You are here: HomeBusiness2014 12 31Article 340945

Business News of Wednesday, 31 December 2014

Source: GNA

FirstBanc makes giant strides in 2014

In spite of the economic challenges witnessed this year, FirstBanC Financial Services has been able to ride the storm, and posted a very strong performance.

The company witnessed over 60% growth in total investments being managed for its investors.

The company’s client base also saw robust growth to over 10,000 clients.

Mr Samuel Asiedu, Acting Managing Director of the Company, made these disclosures when he met with some of its clients at an end-of-year Business Session organized by the company to interact with clients.

Mr Asiedu said, First Fund, the company's flagship money market mutual fund, grew by 61% to GH¢22.3 million.

It recorded an annualized yield of 37.12%, compared with 24% average interest rate for the 91-day Treasury Bill, according to Mr. Asiedu.

He indicated further that interest on the First Fund by investors was strong, due to its high returns which led to a rise by 24% in clientele base.

Mr Asiedu disclosed that First Fund was adjudged the best money market fund of 2013, an award the Fund has won for four consecutive years.

He said the company’s equity fund, Heritage Fund, also saw a strong growth of 33% to over GH¢1.3 million Ghana Cedis, adding that the fund posted a return of 8.87%, outperforming the GSE Index of 7.12%.

Mr. Asiedu indicated that it’s Bulls and Bears programme which provides public education on investments, has contributed positively to the company’s performance during the year.

He said the company continues to feature prominently in the pension fund management business. Inflows in pension schemes also went up. This is in part due to the timely investments decisions carried out by its pension team coupled with value added services provided to scheme Trustees. Pension funds under management currently stands at an impressive GH¢110 million with potential increase expected next year.

Mr Asiedu said the last quarter of the year proved strong for the company, compared to the second and third quarters.

The company, he said, experienced withdrawal of investments by investors during the third quarter as a result of the fall in the value of the cedi, adding however that, as the cedi recovered, investors were attracted by high yield on securities on the market, and it saw return of funds by investors for management.

According to Mr. Asiedu, the company is considering an introduction of another investment product on the market in 2015 if the market condition proves right.

He disclosed that plans are far advanced to set up another office outside Accra in 2015.