Axis Pensions to begin informal sector scheme this year

General Manager for Axis Pension Trust, Paa Kofi Ankomah

Axis Pensions Trust has begun processes to ensure it full operations within the informal sector, General Manager for Axis Pension Trust, Paa Kofi Ankomah has said.

In an interview at an open forum held by Axis Pensions Trust, the General Manager said: “We have a strategy to go into the informal sector very soon. Last year, we piloted the informal pension scheme and we intend to go full scale from the lessons we learned during the piloting.

Going on to the market and piloting has made us understood it more. few things have been revised but definitely, you should expect Axis Pensions Trust jumping into the informal sector, and we hope to take the lead on that. Definitely by the end of this year, Axis Pension Trust will begin operating in the informal sector.”

Investment performance

Despite the grim situation of COVID-19, the Axis Pension Plan Scheme brought in a total investment return of 18.31 percent. The 2020 investment returns represent 8.38 percent above average inflation. The scheme’s benchmark is to exceed inflation by at least 5 percent. The scheme’s Net Asset Value (NAV) increased from GH¢77 million to GH¢130.3 million, with total inflows of GH¢58.4 million, benefit payments of GH¢18.5 million and net investment income of GH¢16.1million.

Government’s treasury rates fell markedly supported by increased liquidity especially from local institutional investors in the year under review as the average volume of fixed-income trades increased by 2.5 times.

Chief Investment Officer of Axis Pensions Trust, Nana Boamah said the strategic asset allocation for the Axis Pension Plan remains unchanged.

The Axis Pension Plan is a master-trust scheme made up of two investment packages (investment plans) namely growth and capital preservation accounts. “Axis Pension Plan return objective is therefore to achieve a stable real return of 5 percent and/or attain a return that exceeds the 364 days Government Paper return on a rolling 5-year basis,” the Chief Investment Officer said.

“In this regard, Government of Ghana intermediate-term notes shall continue to dominate our total portfolio. We believe that segment of the yield curve offers a healthy risk-adjusted return whilst being liquid enough to support our portfolio management strategy. The fund shall opportunistically pick up yields on government bonds to enhance portfolio return.”


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