By Rowland Phillips-Addo

Prof. Cletus Dordunoo, board chair for First Fund has said at the Funds second annual general meeting (AGM) that notwithstanding the general decline in yields of Government of Ghana Treasury Bills and other money market securities, First Fund closed the year 2011 with an impressive annualized yield of 20.26%.

He indicated that the Assent Under Management (AVM) surged from GHC778, 628.67 at the beginning of 2011 to GHC3, 728,136.48 by close of the year. This according to the eminent economist represents an increase of 379% over the period adding that, it was on account of impressive return on investment by the fund and increased investment in the Fund.

He announced also that, the Fund made more progress in increasing AVM to more than 4.5million Ghana Cedis as at the close of the first quarter of 2012.

Prof. Dordunoo told the meeting that plans are far advanced to use electronic mail and SMS as means of notification and publication of account transactions as agreed on at the first AGM adding eCommerce platforms to enable shareholders make transactions more convenient on their accounts via mobile phone have come into operation.

He further announced that an on-line facility has also been developed to enable shareholders view their account balances as well as detailed statement of account on line.

Apparently proud about the Fund’s achievement, Prof. Dordunoo said “we will continue to focus on a comprehensive agenda to build a sustainable fund”.

He said the Fund will provide financial solutions to the public and remain committed to developing new products for Ghana’s developing financial industry.

Later in an interview, Prof. Dordunoo admitted that in 2011, Economic growth remained strong with real GDP growth reaching an estimated 14.4% compared to 5.7% in 2010. Offering an explanation to buttress this assertion, he indicated that this was largely on account of the oil production in commercial quantities which started in December, 2010.

In addition, according to him, the country’s democratic dispensation and social stability have served to boost confidence of investors, leading to a rise in investment flows as recorded by the Ghana Investment Promotion Centre (GIPC).

In answer to a question, the economist said the country’s strong growth has been achieved within a sound macroeconomic environment and that prudent fiscal and monetary management has contributed to easing inflationary pressures with declining interest rates.

He admitted, however, that challenges such as a very weak fiscal stance and fragile external balances remain adding that, growing fiscal challenges include large domestic payment arrears. Also, the government’s new public sector pay policy, i.e. the Single Spine Salary Structure (SSSS) policy brought a number of industrial strikes in the labour front. All these according to Prof. Dordudnoo had negative effects on the economy at large.