Pension funds drive GH₵72bn surge in asset management
Ghana’s funds management sector recorded strong growth in 2024, with Assets under Management (AUM) rising to GHS71.97 billion, according to the latest Financial Stability Review.
This represents a 31 percent year-on-year increase from GHS55.05 billion in 2023, underscoring the resilience of the sector despite economic challenges.
The report attributed the performance largely to robust growth in the pension fund segment, which continued to dominate the market. Pension funds accounted for GHS51.96 billion of the total AUM, representing 72 percent of the industry.
This marked a 32 percent increase compared to 2023, reflecting the steady expansion of Ghana’s three-tier pension scheme and growing contributor confidence in long-term retirement savings.
Collective Investment Schemes (CIS) also posted a remarkable recovery in 2024. After recording a 1 percent contraction the previous year, the CIS segment rebounded with a 25 percent year-on-year increase, reaching GHS6.58 billion in AUM on a marked-to-market basis.
Analysts say this rebound points to renewed investor interest in unit trusts and mutual funds as alternative investment vehicles.
Discretionary funds managed by professional fund managers also recorded healthy growth, expanding by 24 percent to GHS12.08 billion. This suggests that more institutional and high-net-worth investors are entrusting their resources to fund managers to pursue diversified investment strategies.
Another notable development in 2024 was the performance of new and smaller market segments. Real Estate Investment Trusts (REITs), which represent a relatively new frontier in Ghana’s financial landscape, closed the year with a marked-to-market value of GHS545.56 million.
The segment has been touted as a promising avenue for deepening the capital market by linking long-term capital with real estate development.
Private funds also recorded modest growth, posting a 5.9 percent increase to reach GHS802.94 million by year-end. Though still a small component of the overall funds management industry, private funds continue to provide niche investment opportunities.
