Funds under the management of Collective Investment Schemes (CISs) in the country have almost hit GH¢500million as at December, 2014, signalling a growing interest in pooled investor schemes.
The growth in collective investment schemes, which comprises mutual funds and unit trusts, is on the rise as people look for investment schemes that will yield returns above inflation.
Data provided by the regulator -- Securities and Exchange Commission (SEC) -- shows that Collective Investment Schemes within a year saw their managed funds increase by more than a third from GH¢362.5million in 2013 to GH¢494.6million.
Currently, there are 45 licenced CISs in the country which include 27 mutual funds and 18 unit trusts. Last year, the schemes made a net mobilisation of GH¢132.1million, making it one of the strong years since liberalisation of the mutual funds and trusts sector in 2000.
Speaking at the launch of a new mutual fund, CDH Balanced Fund, the Director General of SEC Dr. Adu Anane Antwi said, to further develop the CISs industry, the Commission is currently developing rules for the operations of Real Estate Investment Funds (REIFs), which will come as close-ended mutual funds.
"The development of REIFs will create a strong link between the capital market and the real estate sector to help solve the housing problem facing the country," he said.
Dr. Antwi called on market operators to join the SEC in its efforts to educate investors on how to maximise their investments using the capital market as an investment avenue.
The CDH Balanced Fund is initially offering a minimum of five million shares at an initial price of 10 pesewas per share, with the minimum investment purchase of shares under the IPO set at 200 shares and thereafter in multiples of 50 shares.
Seth Aryitey, Executive Director of CDH Asset Management -- manager of the fund -- said the fund will help clients have better pensions as they reap the benefits of a fund that protects their investments through part investments in less risky instruments, while at the same time enjoying the higher returns that come from investing in more long-term instruments such as shares listed on the Ghana Stock Exchange.
"The investment objective of the fund is to preserve and enhance shareholder's wealth, meet their medium to long-term financial goals, and to create liquidity for them to meet any short-term needs," he said.
He added that under normal market conditions, half of the fund's net assets will be invested in fixed income securities and the residual half in equities.
"The fund seeks to provide long-term income and capital growth, by producing returns commensurate with the risk level based on careful attention to detail, extensive forward planning and rigorous portfolio selection," he added.
The initial period opened from yesterday, April 13, and closes on April 30 -- and the offer is available at all branches of CDH, Phoenix Insurance, Phoenix Life, Agricultural Development Bank (ADB) and uniBank.
"I believe that the CDH Balanced Fund will be a very successful product and will soon become a household name that stands for income security, wealth-creation and prudent financial management," he added.
Dr. Antwi, in lauding CDH on establishing the fund, appealed to all market operators to expand their operations beyond the confines of Accra and into the other regions and districts, so as to help bring the capital market and investments to the doorsteps of all Ghanaians.
Source: Business & Financial Times
