Sep 2005 Financial News

Ansa Merchant Bank launches mutual funds

Sep 22, 2005

Ansa Merchant Bank yesterday launched its first mutual fund into the local market—the Ansa Secured Fund.

The open-ended mutual fund will offer the highest yield available in the local market of six per cent per annum, said Varun Maharaj, general manager of Treasury, Investments and Foreign Exchange at Ansa Merchant.

Maharaj said the existing funds that offered the highest rates were those held by AIC Limited which offer investors a 5.5 per cent yield.

The fund will guarantee the income and guarantee 100 per cent of the capital invested.

With an initial investment of at least $50,000 and a minimum 12-month holding period, this guarantees a minimum return of six per cent per annum for a period of two years, he explained.

He said the fund was targeting professionals, self-made individuals and retired entrepreneurs.

Maharaj said mutual funds were divided into five segments—money market, equity, growth and income, specialist and distributed funds. Specialist and distributed funds have not found favour locally, he pointed out.

He said 60 per cent of mutual funds were money market funds and have been growing at phenomenal rates.

With this in mind, Ansa decided to launch and compete in this market segment and has appointed UK’s Schroder & Co Limited to advise on foreign investment.

Dr Shelton Nicholls, deputy governor of research and policy at the Central Bank, said mutual funds were playing an important part in the development of a more diverse financial system of T&T.

He said by the end of 2004, the industry had, according to the T&T Securities Commission, a total of 206 registered funds—169 foreign funds and 37 registered local funds—with total funds under management in the vicinity of $27 billion.

The launch was held at Hilton Trinidad yesterday morning.

Ansa Merchant chairman Dr Anthony Sabga said investors would share fully in performance above the guaranteed levels.

“There is no upper limit. And the bank will guarantee their income and capital in the event that market conditions are unfavourable. This is like a coin with a head on each side,” he said.

The bank and its insurance partner, Tatil, will be involved in some organisational re-engineering in the months ahead which will cement the union and unlock synergies to provide a wealth of shareholder value, said Ray Sumairsingh, managing director of Ansa Merchant Bank.

Asha Javeed
The Trinidad Guardian
Thursday, 22nd September, 2005
http://www.guardian.co.tt/business1.html