The Chief Investment Officer (CIO) of Stanbic Investment Management Services (SIMS), Mr. George Allotey, has advised Pension Trustees to take advantage of alternative offerings in the Policy Guidelines of the National Pensions Regulatory Authority (NPRA) – to diversify their investments so as to protect their funds against shocks as currently being experienced.

The CIO noted this at the fifth edition of the Pension Strategy Conference organized by Axis Pension Trust in Accra.

Addressing the issue on what the NPRA can do to help Pension Trustees protect their investments given the current inimical economic conditions that they operate in, George Allotey said, “If you look critically at the pension investment guidelines 2021, there are a lot of spaces in there. It doesn’t prescribe a minimum exposure in Government of Ghana; it rather prescribes a maximum exposure. So, it’s not as though our hands have been tied.”

“Our pensions sector is only 12 years so we are still learning and gradually the NPRA has been progressive. We trustees have not yet done even one percent of alternatives so there are many opportunities for us to explore before we start blaming the regulator. There is a lot of work for us the trustees to do to develop products so people can invest in.
“We must also start holding government accountable for what they use our funds for. If we, in the pensions industry, control about GHC 30 billion funds and the government wants to raise GHC1 billion and they listen to other fund holders, why shouldn’t they listen to us? It’s time we start making our voices heard as critical partners in the financial system.”
Mr. George Allotey

The Pension Strategy Conference is an annual event that brings together pension trustees and asset owners, regulators, policymakers and other stakeholders to discuss strategies for navigating the challenging investment landscape.

The conference provides a platform for experts to share insights, best practices and innovative ideas for managing pension funds in the current economic climate. This year’s conference was held under the theme, “Positioning Pension Funds to thrive beyond the Domestic Debt Exchange”.

Pensioner Bondholders Threaten To Resume Picketing If Government Fails To Honour Payment In 2 Weeks

Meanwhile, Pensioners Bondholders exempted from the government’s Domestic Debt Exchange Programme (DDEP) have given the government a two-week ultimatum to pay coupon rates on matured bonds.

They accused the government of defaulting in paying the yields.

The Finance Ministry in a statement released on the 27th February, 2023, promised to honor coupon rates on matured bondholders who did not sign up for the Domestic Debt Exchange Programme (DDEP).

The statement said “in fulfillment of the assurance given by Government to bondholders who did not tender, the Ministry is taking administrative steps to ensure that payments of coupons and principals of the old bonds resume by 13th March, 2023.”

Days after the assurance by government, some bondholders have disclosed that they are yet to receive payment of coupons and principals on their investments.

The Convener of the Pensioner Bondholders Forum and also a former Director-General of the Securities and Exchange Commission, Dr. Adu Anane Antwi, speaking in an interview on 31st March, 2023, averred that affected persons will resume picketing if the government fails to honor the claim.

“If you exempt any bonds, you have effectively said as for your bonds, I don’t have any problems paying so go and sleep anytime your coupon is due, just go to your bank and it will be there, that is the dictate of the market and government is not doing that. We have drawn the attention of government to that, and this is the third time we are doing that.
“We think that we will not allow it to continue and that’s why we are saying if by 21st April, 2023, all these anomalies are not resolved for us to return to normalcy and get our coupons and principals as and when they are due, then we will resume our picketing.”
Dr. Adu Anane Antwi