Investment in mutual funds, others surge — Assets under management also up

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Paul Baah-Sackey (2nd from left), the Board Chairman for Bora Capital Advisors, Paul Ababio (3rd left), Deputy Director-General of SEC, Nana Sarfo (2nd from right), CEO of Bora Capital Advisors and some other officials unveiling the prospectus for the new investment scheme

THE number of collective investment schemes (CIS), such as mutual funds and unit trusts, in the country have grown from 53 in 2017 to 80 as at June 2022.

Assets under management by the CISs have also skyrocketed from GH¢2.17 billion in 2017 to GH¢7.8 billion as at June 2022.

The Deputy Director-General of the Securities and Exchange Commission (SEC), Paul Ababio, who disclosed this on September 15 in Accra said the development, aside pointing to the restoration of confidence in investment schemes, also provides investors with a wide range of investment options.

“We are excited about the growth in the industry and we see the collective investment space as a viable investment avenue for individual investors,” he said.

Mr Ababio was speaking at the launch of two new collective investment schemes introduced by Bora Capital Advisors.

What many will describe as a welcome development is in view of the total loss of confidence in such schemes following the financial sector crisis which saw many such businesses fold up.

The development resulted in thousands of individuals and corporates losing either all or a large portion of their investments.

New products

Dubbed the ‘Bora Fixed Income Unit Trust’ and ‘Bora Balance Unit Trust’, the two new collective investment schemes are targeted at Ghana’s retail and institutional markets to service the growing client demand.

Supervision

Mr Ababio expressed the SEC’s commitment to enhanced supervision of the security industry and charged market operators to keep their fiduciary role and professionalism.

“SEC shall continue to promote an orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected,” he said.

He also advised members of the public to ensure that they are well-informed about the investment opportunities before committing to them.

In his presentation, the Executive Director in charge of retail and wealth management at Bora Capital, William Mensah, explained that the Bora Fixed Income Unit Trust is an open-ended Unit Trust that will primarily invest in a diversified portfolio of Fixed Income Securities.

He said the Trust, which aims to preserve and enhance the wealth of unit holders to meet medium to long term financial goals while creating liquidity to meet short term needs, will have Fidelity Bank as the Trustee for the scheme.

“With GT Bank as the Trustees, the Bora Balanced Unit Trust also seeks to grow unit holder’s’ wealth to meet medium to long term financial goals with diversified portfolio of fixed income and equity securities.

“Under normal market conditions, 55 per cent of the Trust’s net assets shall be invested in fixed income securities and the residual 40 per cent in equities, with the remaining five per cent in near cash to create liquidity,” Mr Mensah said.

Building wealth

For his part, the Board Chairman for Bora Capital Advisors, Paul Baah-Sackey, said the products will give Ghanaians an opportunity to benefit from an experienced team of well-trained investment professionals without the requirement of having to invest huge sums of money.

“We believe that every Ghanaian, no matter how low their income, can build significant wealth through consistent investments in schemes that are managed to consistently deliver optimum returns commensurate with the risk associated with that particular scheme,” he said.

The Chief Executive Officer (CEO) of Bora Capital Advisors, Nana Sarfo, said: “We have benefited from our clients giving us repeat business through their appreciation that at Bora, we put our clients’ interest first, and deliver excellent simple and effective solutions”.

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