The Ghana Stock Exchange (GSE), in collaboration with the National Pensions Regulatory Authority (NPRA) and the Securities and Exchange Commission (SEC), have held a workshop for players in the pensions industry to discuss investment opportunities on the Exchange’s markets.
The workshop shared the impressive performance of the Exchange and the opportunities, especially in the Exchange’s equities markets, that abound for knowledgeable and patient investors like pension fund trustees and managers.
Addressing participants, which included trustees of employer-sponsored pension schemes, corporate trustees, pension fund managers and licensed stockbrokers of the Exchange, the Managing Director of the Ghana Stock Exchange, Mr. Ekow Afedzie indicated that the opportunities the GSE platform provides for pension funds are enormous in realizing good returns for their principals.
According to the Managing Director, although pension fund investments in fixed income securities continue to increase, the same cannot be said of equities.
“Since pension funds are long-term in nature, opportunities exist for players in this space to invest in equities as well. Growth in equity investments is critical in making patient capital available for businesses to expand and grow to support the national economy.”
Mr. Ekow Afedzie
The workshop also discussed opportunities in the Exchange’s three markets: the Main Market, Ghana Alternative Market (GAX) for SME’s and Ghana Fixed Income Market (GFIM). These three platforms have been created to provide options for businesses and the investing public for their investment and capital mobilization decisions.
In remarks read on his behalf, the CEO of the NPRA, Mr. Hayford Atta Krufi, stressed the need for a vibrant equities market with rewarding returns for pension schemes to channel more investments in making real impact on the economy.
He noted that collaboration between all capital markets players is critical to ensure retirement income security and social protection for all Ghanaians.
On his part, the Director-General of the SEC, Rev. Daniel Ogbarmey Tetteh called for pension fund players to invest in long term securities, including equities in their portfolios.
The Director General stated the stock market offered interesting investment opportunities for asset owners who have time on their side, such as pension funds. He also indicated that the implementation of some initiatives in the recently launched Capital Market Master Plan would aid in improving liquidity and listings on the Ghana Stock Exchange.
The GSE shared some key initiatives in their 3-year strategic plan, including the introduction of new products, listing more companies and undertaking investment literacy programmes for key players and the public.
These initiatives are aimed at moving the Exchange from a frontier to an emerging market, making the Exchange the preferred platform for investment and long-term capital mobilization.
The GSE, as part of its ongoing requirements, demands that listed companies regularly furnish the investing public and related stakeholders with relevant information. This is achieved through the publication of financial results and other notices, interacting with stakeholders to explain their results at its ‘Facts behind the figures’ sessions, among other measures.
The Ghana Stock Exchange, with its listing and membership requirements to issuers of securities on the market, is an appropriate avenue for ensuring transparency and accountability on the use of funds so investors can be assured.
The continuous collaboration among regulators and markets will also go a long way to ensure stability of the financial security system in this country. At a time when trust in the whole sector is low… these things engender trust, and that is why the stock exchange was established.
