Fortune Fund hits 40% price rise in seven months

Accra, Aug. 12, GNA - Strategic African Securities (SAS) Fortune Fund has recorded a 40.06 per cent rise in price appreciation since the beginning of the year following a successful restructuring of its portfolio management.

The Fund, which made a 23.03 per cent price appreciation last year compared to 9.98 per cent the previous year, is further considering venturing into other African stock markets to make its product more attractive and number one on the market.

Addressing shareholders at the Third Annual General Meeting of the Fund on Tuesday in Accra, Mr Edem Avotri, Fund Manager, said this was the best time to be a Fortune Fund Shareholder because the gains chalked in the first seven months of the year 2008 were expected to continue. He said the Ghana Stock Exchange was expected to see more activity this year as more companies sought to list and coupled with its ongoing automation trading system, the expected performance of companies would be good.

Giving an overview of the Fund's performance for 2007, Mr Avotri said the year ended with a portfolio structure of 71.22 per cent equity holdings as against 63.09 per cent in 2006.

Fixed income securities were 21.36 per cent and 7.42 per cent was cash.

Total dividends received for the year amounted to GH¢13,354.57 representing 17.77 per cent increase over the previous year. The Fund recorded a 6.5 per cent increase in asset base growing from GH¢459,377 at the end of 2006 to GH¢518,758 at the end of the 2007.

Mr Avotri said additional capital would be mobilised to increase asset base in order to explore opportunities in other emerging markets. "The Fund Manager will aim to enhance the performance of the portfolio by identifying securities with favourable long term prospects whose prices are attractive."

Mr Avotri said with the rise in the minimum capital requirement for banks between GH¢50 million and GH¢60 million, companies (Banks) on the exchange were likely to float more right issues and/or go into mergers which would further boost trading activities. "We expect another bull in 2008 because the financial market has a lot to offer with regard to wealth creation." he said.

Mr Fred Oware, Board Chairman of the Fund, urged shareholders to increase their holdings saying, "The Fund is on the right track and the only way to maximise gains is to invest more." 12 Aug. 08