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InvestCorp Money Market Fund maintains liquidity, fulfils all investor obligations in 2025
This comes despite the Fund recording a full-year return of 7.90% for the year ended December 31, 2025, down from 29.17% in the previous year.
Presenting his submission at the Fund’s Annual General Meeting, Chairman Kofi Boateng said the Fund remained resilient during a challenging year marked by significant shifts in interest rates and currency dynamics.
He attributed the decline in returns primarily to the sharp compression in Treasury yields, which reduced reinvestment income as maturing securities were rolled over into lower-yielding instruments.
“In addition, the significant appreciation of the Ghana cedi against major foreign currencies impacted the fund’s foreign currency positions following the implementation of the offshore diversification strategy approved by shareholders and the regulator,” he said.
Despite the impact of the cedi’s appreciation, Mr Boateng said the Fund continued to view its offshore allocation as a long-term portfolio strategy.
“While the appreciation of the Ghanaian cedi weighed on the fund’s performance, we continue to view the offshore allocation strategy as a long term portfolio positioning strategy,” he said.
He said the Fund would continue to manage its offshore exposure cautiously, with a focus on maintaining portfolio stability.
“Accordingly, the fund remains prudent in managing its offshore exposures with strong emphasis on maintaining portfolio stability and minimizing excessive volatility within the overall portfolio structure,” he said.
Strong liquidity position
Despite these headwinds, the Fund maintained a stable liquidity position and successfully met all redemption requests throughout the year,” he said.
Looking ahead, he said the Fund would maintain a cautious and flexible investment strategy focused on protecting investors’ capital while navigating the lower interest rate environment.
“Looking ahead, the Fund will continue to adopt a cautious and flexible investment approach focused on capital preservation, liquidity management, and optimising returns within a lower interest rate environment,” he said.
He said the Fund would selectively allocate resources to high-quality money market instruments while maintaining diversification and seeking to enhance risk-adjusted returns.
“The Fund’s strategy will emphasize selective allocation to high-quality money market instruments, while maintaining measured exposure to foreign currency assets where appropriate to respond to evolving macroeconomic and interest rate conditions,” he said.
