Enterprise Trustees’ Master Trust Pension Schemes’ assets hit over GH¢7bn on strong investment returns

Enterprise Trustees LTD., Ghana’s largest private pension trustee company, grew its Master Trust Pension Schemes’ assets under management (AUM) to nearly GH¢7 billion in 2024, driven mainly by investment returns rather than fresh contributions.

Managing Director, Joseph Ampofo said about 60 percent to 70 percent of the increase came from returns, with the remainder from monthly contributions by employers and employees.

“Largely, a chunk of it was sitting in the DDEP bonds,” he noted, referring to government securities affected by Ghana’s Domestic Debt Exchange Programme.

The debt restructuring hit most institutional investors, but pension funds were ring-fenced from the harshest losses. That gave the sector an edge. According to Mr. Ampofo, while banks saw yields of about 9 percent on restructured bonds, pension funds recorded close to 19.5 percent. This differential helped Enterprise Trustees consolidate growth, despite accounting for modification losses under International Financial Reporting Standards.

Mr. Ampofo outlined a portfolio mix dominated by Government of Ghana bonds, alongside fixed deposits, equities, collective investment schemes, and private capital instruments. He said the reliance on state securities had supported growth but also highlighted the need for gradual diversification.

“We need to be able to move on a diversification agenda, but that has to hasten slowly,” he said. Quality alternatives, he added, remain limited in Ghana’s market.

The Company’s performance comes at a time when treasury bill yields have been declining. The three-month T-bill now hovers around 10 percent to 13 percent, compared to much higher levels in previous years. This, Ampofo said, is reshaping expectations for pension fund returns. Enterprise Trustees has set a benchmark of at least 1.5 percent above prevailing T-bill rates.

“We cannot be singing on high rates when the assets that we can deploy the pension funds to are all commanding low rates,” he said. He urged members to understand that falling rates reflect efforts to place the economy on a more sustainable footing.

Despite lower interest rates, Enterprise Trustees paid out a record GH¢121 million in benefits to members of one of its five master trust pension schemes in 2024, up 30 percent from the previous year.

Membership has also been growing steadily as more Ghanaians gain confidence in private pensions.

Operational challenges remain. Mr. Ampofo pointed to incomplete Know Your Customer updates and employer schedule errors that slow the allocation of contributions. He encouraged employers to validate schedules through the company’s online portal to avoid reconciliation delays.

At the Company’s Scheme Annual General Meeting, Mr. Ampofo thanked members and partners for their contributions to the scheme’s progress. He reaffirmed a commitment to “aggressively driving the scheme’s growth, enhancing service delivery, and securing better outcomes” for members.

With Ghana’s monetary policy rate at 25 percent and inflation easing toward 12 percent, Enterprise Trustees’ experience reflects the broader transition from high-yield, high-risk markets to a lower-rate environment. The shift underscores both the resilience of pension funds after the DDEP and the sector’s reliance on prudent diversification to protect retirement savings.

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