Cal Asset Management has reported remarkable growth in its collective investment schemes since their introduction in September 2022.
This growth, highlighted during the company’s first Annual General Meeting, has been driven by strategic initiatives and proficient portfolio management. The two main schemes, now rebranded as the Cal Benefit Fixed Income Unit Trust and the Cal Advantage Balanced Unit Trust, have shown impressive performance, attracting considerable investor interest.
By the end of 2023, the compounded return on investments for unit-holders under both schemes exceeded 40%, indicating strong price performance and growing investor confidence. James Elijah Donkoh, CEO of Cal Asset Management, attributed this success to the company’s focus on safer investment options, especially in the aftermath of the Domestic Debt Exchange Programme (DDEP). He emphasized that the funds’ performance has outpaced inflation and the short end of the fixed income yield curve, reflecting the company’s effective market positioning and wealth creation capabilities.
The Cal Benefit Fixed Income Unit Trust experienced a significant year-on-year increase in its Net Asset Value (NAV), rising by 250.33% to reach GH₵16.87 million by the end of 2023. This fund’s strong performance has been a key driver of its popularity among investors seeking stable returns. Similarly, the Cal Advantage Balanced Unit Trust saw its NAV grow by 100.39%, closing the year at GH₵4.45 million. This balanced approach has attracted investors looking for a mix of income and growth opportunities.
Cal Asset Management’s Transparent and Efficient Management Approach
The impressive growth of these schemes is a testament to Cal Asset Management’s transparent and efficient management approach. Mr. Donkoh noted that the company’s strategies aim to improve liquidity for unit-holders, reduce risks, and enhance profitability. He expressed optimism about the future, highlighting the aggressive increase in Assets Under Management (AUM) for both portfolios. This growth trajectory suggests a bright outlook for the company’s investment products in the market.
During the AGM, unit-holders also approved amendments to the scheme, allowing the Fund Manager to allocate up to 60% of the assets under management to offshore investments. This expanded investment scope includes sovereign debt securities, money market securities, corporate and supranational debt securities, as well as collective investment schemes.
The decision to diversify into foreign investments aligns with Cal Asset Management’s strategic focus on diversification and risk management. By including a foreign component in the portfolio, the company aims to mitigate risks associated with local market fluctuations and inflation, thereby enhancing the stability and sustainability of returns.
Mr. Donkoh explained that incorporating foreign currency-denominated securities into the investment portfolio would provide a buffer against local market risks and inflationary pressures. This strategic move is expected to not only protect the scheme’s assets but also offer a broader range of investment opportunities to unit-holders. The company’s approach to diversification underscores its commitment to delivering consistent and reliable returns, even in a volatile economic environment.
Cal Asset Management’s performance and strategic initiatives reflect a broader trend of investors seeking safer and more diversified investment options. The company’s success in attracting and maintaining investor interest, despite entering the market relatively recently, highlights its effective management practices and the attractiveness of its investment products. The strong growth in the NAV of its schemes indicates a robust market presence and a positive outlook for future expansion.
Cal Asset Management has demonstrated substantial growth and resilience in its investment schemes, achieving significant returns for its unit-holders. The company’s focus on transparent management, diversification, and risk mitigation has positioned it well in the market. As it continues to expand its investment horizons, including offshore opportunities, Cal Asset Management is poised to provide stable and sustainable returns, reinforcing investor confidence and solidifying its market presence.
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