Strong Performance of CAL Asset Management Funds in 2024
CAL Asset Management Company has demonstrated impressive results for its flagship collective investment schemes, the CAL Advantage Unit Trust and the CAL Benefit Unit Trust, in 2024. These funds have delivered returns that surpassed inflation, reinforcing investor confidence and highlighting the firm’s strong position within Ghana’s asset management sector.
The CAL Advantage Fund, an open-ended unit trust with GH¢12.5 million in Assets Under Management (AUM), achieved a return of 34.41 percent in 2024. This performance placed it among the top quartile of income funds in the market. The fund’s success is attributed to its robust investment strategy and prudent asset allocation, as noted by the managers. Their statement emphasized that the fund’s performance reflects its ability to outperform licensed collective investment schemes in the market.
Meanwhile, the fixed-income CAL Benefit Unit Trust, which manages GH¢32.25 million in AUM, recorded a return of 24.91 percent for the year. The trust’s proactive management was credited with effectively leveraging interest rate fluctuations and credit opportunities to generate consistent income. Both funds outperformed the year-end inflation rate of 23 percent, offering investors real positive returns despite the challenging economic environment over the past three years.
At the Annual General Meetings (AGMs) for the respective funds, CEO James Elijah Donkoh described the results as satisfactory, emphasizing that the returns were reflective of prudent fund management. He noted that both funds performed better than the previous year, which he considered a significant achievement.
These results come amid a broader shift in the investment climate as Ghana’s economic fundamentals continue to stabilize. Inflation has declined from earlier highs, and interest rates have followed a downward trend. The cedi has also shown relative stability, contributing to improved investor sentiment.
Donkoh stressed that the funds’ performance not only competes well within the local market but also successfully preserves investor purchasing power. He highlighted that the real returns on investment were higher than inflation, ensuring that investors saw good returns on their investments.
The growth in assets under management for both funds indicates rising investor confidence. As the firm continues to attract contributions from both retail and institutional investors, it offers diversified, professionally managed investment options. This is especially appealing given the subdued yields on bank deposits.
Donkoh encouraged existing investors to remain committed and urged new investors to consider the long-term value of collective investment schemes. He emphasized that every cedi invested counts and encouraged investors to add more to their investments so that their money can work for them while they rest.
The results from CAL Asset Management come at a time when Ghana’s fund management industry is showing signs of recovery following recent regulatory reforms and renewed interest in domestic investment opportunities. Investors are increasingly seeking vehicles that offer a hedge against inflation while maintaining transparency and regulatory oversight.
In terms of future plans, Mr. Donkoh mentioned that the company is advancing its efforts to provide offshore investment options to its investors, with regulatory approval pending. Looking ahead to 2025, the firm remains cautiously optimistic, citing projected GDP growth of 4 to 5 percent and continued disinflation as supportive factors for another strong year.
For 2025, the focus will be on identifying and leveraging strategic investment opportunities to ensure consistent, competitive, and sustainable returns over the long term. This approach underscores the company’s commitment to delivering value to its investors amidst evolving market conditions.
