{"id":247516,"date":"2024-11-07T16:33:38","date_gmt":"2024-11-07T16:33:38","guid":{"rendered":"https:\/\/www.ghanamma.com\/2024\/11\/07\/macroeconomic-climate-drives-asset-management-industry-to-impressive-growth-bank-of-ghana\/"},"modified":"2024-11-07T16:33:38","modified_gmt":"2024-11-07T16:33:38","slug":"macroeconomic-climate-drives-asset-management-industry-to-impressive-growth-bank-of-ghana","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2024\/11\/07\/macroeconomic-climate-drives-asset-management-industry-to-impressive-growth-bank-of-ghana\/","title":{"rendered":"Macroeconomic climate drives asset management industry to impressive growth \u2013 Bank of Ghana"},"content":{"rendered":"

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\"Bank Bank of Ghana Governor, Dr Ernest Addison<\/span><\/span><\/p>\n<\/div>\n

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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.<\/p>\n

According to the central bank\u2019s Financial Stability Report, total assets under management (AUM) in the asset management sector reached GH\u20b567.5 billion (mark-to-market) and GH\u20b555 billion when private funds were included by the end of the year.<\/p>\n

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.<\/p>\n

The report indicated that this growth surpassed the 10 percent increase recorded in 2022, signaling renewed optimism within the sector.<\/p>\n

The BoG detailed that investment funds performed variably across different asset classes.<\/p>\n

Pension funds, private wealth funds, and other funds experienced growth, while Collective Investment Schemes (CIS) saw a decline on a mark-to-market basis.<\/p>\n

Pension Funds grew by 12 percent, reaching GH\u20b539 billion (Held to Maturity: GH\u20b549 billion), making up 71 percent of the industry\u2019s total AUM.<\/p>\n

Private Wealth and Other Funds increased by 38 percent to GH\u20b59.7 billion (Held to Maturity: GH\u20b510.8 billion), representing 18 percent of the industry\u2019s total assets.<\/p>\n

In contrast, Collective Investment Schemes (CIS) recorded a one per cent decline in their net asset value, ending 2023 with GH\u20b55.2 billion (Held to Maturity: GH\u20b56.9 billion), constituting 10 percent of the industry\u2019s assets.<\/p>\n

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).<\/p>\n

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.<\/p>\n

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