By Jibril Abdul Mumuni
Accra, Nov. 7, 2024 – The Bank of Ghana (BOG) has reported that the asset management industry (AMI) showed significant resilience in 2023, propelled by a relatively improved macroeconomic environment, which positively impacted the broader securities industry.
According to the central bank’s Financial Stability Report, total assets under management (AUM) in the asset management sector reached GH₵67.5 billion (mark-to-market) and GH₵55 billion when private funds were included by the end of the year.
This marked a notable 38 percent year-on-year growth, reflecting a strong Compound Annual Growth Rate (CAGR) of 23 percent over the past decade.
The report indicated that this growth surpassed the 10 percent increase recorded in 2022, signaling renewed optimism within the sector.
The BOG detailed that investment funds performed variably across different asset classes.
Pension funds, private wealth funds, and other funds experienced growth, while Collective Investment Schemes (CIS) saw a decline on a mark-to-market basis.
Pension Funds grew by 12 percent, reaching GH₵39 billion (Held to Maturity: GH₵49 billion), making up 71 percent of the industry’s total AUM.
Private Wealth and Other Funds increased by 38 percent to GH₵9.7 billion (Held to Maturity: GH₵10.8 billion), representing 18 percent of the industry’s total assets.
In contrast, Collective Investment Schemes (CIS) recorded a one per cent decline in their net asset value, ending 2023 with GH₵5.2 billion (Held to Maturity: GH₵6.9 billion), constituting 10 percent of the industry’s assets.
The BOG attributed the decline in CIS to several factors, including mark-to-market adjustments and liquidity challenges arising from the Domestic Debt Exchange Programme (DDEP).
The Central Bank noted that shifts in interest rates within the money market played a role in driving investors towards government securities, leading to an increased preference for treasuries.
GNA