Sunday, 23 February 2020

Heritage Fund gains 1.69% more in returns for the second half of 2019


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Adnan Adams Mohammed

The Ghana Heritage Fund (GHF), investment returns have improved 1.69 percent in the second half of 2019 as compared to the first half in the same year.

The GHF which is a part of the Ghana Petroleum Funds (GPFs), recorded a total return on investment of year to date of 6.4 percent during the second half of 2019, as compared to 4.71 percent in the earlier half of the year.

According to the semi-annual report on the Ghana Petroleum Funds for 2019 by the Bank of Ghana, the two-year annualized return of GHF was 7.61 percent whiles the three-year annualized return was 3.46 percent.

"The general fall in yields across all tenors coupled with the 75 basis points cut in US interest rates during the second half of 2019 led to an increase in the capital appreciation of bonds as their secondary market prices increased, improving the marked-to-market performance of the Ghana Petroleum Funds", the GPF report stated.

The GPFs reserves at the end of the second half of 2019 were US$968.20 million which returned a net realised income of US$ 21.95 million.

Also, the Ghana Stabilisation Fund contributed 37 percent or US$ 8.21 million to total net income whilst the Ghana Heritage Fund (GHF) contributed 63 percent or US$ 13.74 million.

The GPFs reserves at the end of the second half of 2019 were US$ 968.20 million, of which the GHF was US$ 579.61 million and GSF was US$ 388.60 million compared to a total of US$ 866.38 million in the same period of 2018 (of which GHF was US$ 485.17 million and GSF was US$ 381.20 million).

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