Enterprise Trustees is aiming to aggressively pursue growth 2024, and improve investment outcomes, following its impressive outturn for 2023.
The Enterprise Tier 2 Occupational Pension Scheme, which was incepted in 2012 with an Asset under Management (AUM) of GH₵ 1.5m, has experienced remarkable growth over the years.
As of the end of 2023, the Scheme’s AUM stood at a staggering GH₵ 3.752 billion, representing a 41 percent increase from the previous year’s position of GH₵ 2.626 billion. This growth is attributed to a net contribution of 38 percent and investment returns of 62 percent.
Speaking at the company’s Annual General Meeting, the Managing Director, Mr. Joseph Ampofo, expressed the organization’s unwavering commitment to its members’ retirement security.
“We intend to aggressively drive our growth, enhance our service delivery, and ultimately, provide better outcomes for members,” Mr. Ampofo said.
The Scheme’s performance has been impressive, with a Compounded Annual Growth Rate (CAGR) of 20.14 percent since inception. In 2023, the Scheme returned 24.77 percent, earning investment income of GH₵ 951.58 million on fixed-income instruments and GH₵ 36.71 million on equities, mutual funds, and alternative investments.
Elaborating on the Scheme’s investment strategy, Mr. Ampofo stated, “The Scheme seeks to provide retirement security to its members and pays a lump-sum upon retirement. It aims at maximizing income while preserving members’ contributions, which is achieved by investing in a diversified portfolio of government securities, local government, money market, corporate bonds, alternative investments, equities, and mutual funds.”
The Scheme’s commitment to its members is further evident in the significant increase in benefit payouts. In 2023, the total retirement lump-sum benefit payout was GH₵ 93.09 million, a substantial increase from the GH₵ 65.58 million paid out in 2022. The highest retirement benefit paid in 2023 was an GH₵1.89 million.
The Scheme’s membership has also grown steadily, reaching 421,873 as of December 31, 2023, compared to 381,133 members at the end of December 2022.
Despite the challenges posed by the Domestic Debt Exchange Programme (DDEP) launched by the Government of Ghana in 2022, the Scheme has remained resilient. The Chamber of Corporate Trustees, representing the private pensions industry, collaborated with Organized Labour (Unions) to ensure that the DDEP had no detrimental consequences on pension schemes.
As a result, the Scheme expects continue to pursue its diversification strategy to maintain portfolio resilience in the face of global and local economic difficulties.
This year, the Ghanaian economy is expected to recover moderately. Economic activity is expected to rebound, with strong growth in the Oil & Gas sector and a recovery in construction activities. However, the year ahead is also subject to enormous headwinds, such as uncertainty surrounding external debt restructuring and the upcoming elections in December 2024.
Despite these challenges, Mr. Fiifi Kwakye, Chairman of the Scheme Board said that the Enterprise Trustees team remains steadfast in its commitment to driving growth, enhancing service delivery, and providing better outcomes for its members.
“With a proven track record of strong investment performance and a relentless focus on member satisfaction, the organization is poised to lead the way in the Ghanaian pension industry,” he said.
