The Managing Director of Stanbic Investment Management Services (SIMS), Kwabena Boamah, has urged investors to take advantage of what he describes as “the best time” to grow their money.
Speaking during an interview after SIMS’ Annual General Meeting (AGM), Mr. Boamah emphasised that the Stanbic Income Fund, in particular, is well-positioned to deliver long-term value.
According to him, “In fact, this is the best time to be investing in the Income Fund if you’re looking at appreciation over the medium to long term, mainly because the bond prices are lower than before.
“What we are doing now is to distinguish between the two, and we’ll be communicating to our clients that anything short-term will go to the Cash Trust, and the Income Fund will purely focus on medium to long-term investment.”
His comment comes after the firm’s two funds, Stanbic Cash Trust (SCT) and the Stanbic Income Fund Trust (SIFT), record strong recovery growth.
Mr. Boamah explained that the strategic move is aimed at deepening investor understanding of the two funds and ensuring better alignment with their financial goals.
“The Cash Trust is a money market fund. It is short-term. It is not accessible to mark-to-market or volatilities in terms of price. So, if you’re looking for a short-term investment, you do the Cash Trust.
“The Income Fund, however, is a medium to long-term investment. It takes strategic positions to give a better return to clients over a longer horizon,” he said.
The AGM, attended by unitholders, trustees, fund managers, and key stakeholders, was held to present the firm’s performance and provide clarity on SIMS’ investment strategy.
The Stanbic Cash Trust posted a Net Investment Gain of GH¢108,573,058, a sharp reversal from the GH¢25,764,851 loss recorded in 2023.
” Its total net assets nearly doubled, rising to GH¢773,146,250 from GH¢430,273,655. The fund also saw a growth in investor confidence, with its unitholder base increasing to 19,507, and its bid price per unit appreciating from GH¢5.6584 to GH¢7.4767.
The Stanbic Income Fund also staged a significant recovery, registering a Net Investment Gain of GH¢74,835,395, compared to a loss of GH¢78,316,157 the previous year.
Total net assets grew to GH¢476,246,334 from GH¢380,659,265, while the unitholder count rose from 11,543 to 12,734. The bid price per unit improved from GH¢7.3447 to GH¢9.3267.
Mr. Boamah attributed the strong comeback of both funds to the team’s disciplined investment approach and ability to manage risk in a constantly evolving market. He also noted that SIMS has shifted its strategy towards longer-term investments.
“We actually buy in longer than we used to. So instead of doing a one-month or two-month investment, we’re doing more of a 182-day to up to a year kind of investment.
“That way, the rates will not change until six months or one year before you feel the impact of the declining interest rates,” he said.
Beyond risk, Mr. Boamah admitted that although the regulatory requirements haven’t always been easy, they are crucial to building a safer and more accountable investment environment.
“There are more onerous responsibilities on us to get more information about [clients] to be able to match the type of investment they are doing versus their own personality or risk profile,” he said.
Looking ahead, Mr. Boamah reinforced SIMS’ commitment to transparency, discipline, and long-term value creation.
“Our goal is to make the investment journey clear and intentional for our clients. Whether they are looking for short-term returns or building wealth over the years, SIMS has the right product and expertise to help them get there,” he added.
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