NGIS Money Market Fund’s net assets rise 33.3% to GH¢11.78m

NGIS Money Market Fund PLC reported a substantial 33.3% increase in its net assets, reaching GH¢11.78 million in 2025, despite a drop in interest rates throughout the year. This growth was disclosed at the 21st Annual General Meeting, with Prof. Kwaku Dwumor Kessey, the Board Chairman, crediting the success to the fund's steadfast investment approach and increasing investor trust.

The Net Asset Value per Share (NAVPS) climbed from GH¢1.2319 to GH¢1.3778, marking an 11.84% rise, while total investment income climbed by 13.4%, from GH¢1.44 million to GH¢1.63 million. Additionally, investor involvement heightened, with share issuance proceeds growing by 76.4%, from GH¢3.43 million in 2024 to GH¢6.06 million in 2025.

Subscriptions outpaced withdrawals, yielding net capital inflows of GH¢2.94 million, compared to GH¢2.22 million the previous year. Despite the rise, withdrawals surged as investors utilized the fund for liquidity management, while subscriptions remained higher than redemptions, generating net capital inflows of GH¢2.94 million, up from GH¢2.22 million in 2024.

Professor Kessey highlighted the challenge posed by the recent drop in interest rates, which had a significant impact on short-term fixed-income instruments. He emphasized the fund manager's ongoing need to reassess the portfolio to find investment opportunities that can yield competitive returns while maintaining the fund's objectives of capital preservation and liquidity.

Looking ahead to 2026, Professor Kessey expressed increased optimism about Ghana's economic outlook, noting reduced inflation, improved foreign exchange stability, and growing economic activity. However, he acknowledged the fund's vulnerability to broader economic risks, citing the restructuring of cocoa bills as a notable example.

Professor Kessey informed that the fund had acquired cocoa bills, with the intention of receiving the principal and interest within six months, but due to the financial crisis, the bills were converted into bonds, extending the repayment period to five years—a risk the fund had taken. Mr. Edward K. Asamoah, Chief Executive Officer of New Generation Investment Services Limited, stated that the exceptionally high yields observed in prior years might not recur in the current lower interest-rate environment.

Nevertheless, Mr. Asamoah noted that lower inflation could bolster investors' real purchasing power and foster a more stable investment atmosphere. He stated that the fund manager would concentrate on actively managing maturities and reinvestment risks, identifying prospects across the yield curve, preserving strong liquidity reserves, and carefully managing credit and counterparty risks.