The Bank of Ghana (BoG) has revealed that investment firms managing funds on behalf of individuals and institutions recorded strong growth in 2024, with a significant rise in the total value of assets under their management, estimated at GH₵71.97 billion.

According to its 2024 Financial Stability Review, funds under management rose by nearly a third (31%) from GH₵55.05 billion in 2023.

“The Funds Management sector witnessed robust growth. Underpinned by a strong performance in several key segments, total AUM on a MTM basis reached GH₵71.97 billion by the end of the year—an impressive 31 per cent year-on-year growth from GH₵55.05 billion at the end of 2023,” parts of the report read.

The Bank of Ghana attributed the significant gains to the strong performance of key segments within the financial sector. It revealed that pension funds played the biggest role in increasing the total value of investments, as they continue to dominate the market. Out of the total money managed by investment firms, pension funds accounted for about 72%, which equals GH₵51.96 billion.

The report noted that this figure represents a 32% year-on-year increase, reflecting a rise in overall investment activity. It also added that Collective Investment Schemes such as mutual funds and unit trusts bounced back strongly in 2024 by 25 per cent, reaching a marked-to-market value of GH₵6.58 billion, compared to a one per cent decline in 2023.

“A major contributor to this expansion was the pension fund segment, which continued to dominate the market. Pension funds accounted for 72.0 per cent of the total AUM, amounting to GH₵51.96 billion, based on marked-to-market values and adjusted data from custodians. This represents a 32.0 percent year-on-year increase, highlighting the resilience and sustained growth of pension investments in the current economic climate.

“Collective Investment Schemes (CIS) also demonstrated a notable turnaround from the 1 per cent year-on-year decline in 2023, rebounding by 25.0 per cent year-on-year, to reach marked-to-market values of GH₵6.58 billion for the year under review,” it added.

Additionally, discretionary funds expanded by 24% compared to the previous year, reaching GH₵12.08 billion in assets. The Real Estate Investment Trusts (REITs) segment, described in the report as a new market category, recorded a total market value of GH₵545.56 million in 2024. Furthermore, private funds ended the year at GH₵802.94 million, reflecting a 5.9% increase compared to 2023.

“Discretionary funds managed by fund managers similarly expanded by 24.0 per cent year-on-year to settle at GH₵12.08 billion. The Real Estate Investment Trusts (REITs) segment (new market segment) ended the year with a marked-to-market value of GH₵545.56 million, while Private funds experienced a gain of 5.9 per cent to end the year with AUM on a marked-to-market basis of GH₵802.94 million,” it added.

The total value of assets managed in the investment industry measured on a Held-to-Maturity (HTM) basis—covering bonds and securities—increased by 26.9%, reaching GH₵85.62 billion. The report emphasised that these results highlight the industry’s capacity to attract investors despite economic challenges such as inflation, currency depreciation, and sluggish growth.

“The AUM on Held-to-Maturity (HTM) basis expanded by 26.9 per cent to GH₵85.62 billion in 2024. Based on adjusted data from custodians, the pensions sector posted an HTM AUM of GH₵62.47 billion, discretionary and non-discretionary funds of GH₵13.83 billion, CIS of GH₵7.97 billion, REITs of GH₵0.55 billion, and Private Funds of GH₵0.80 billion. This broader growth on both the marked-to-market and HTM basis underscores the industry’s capacity to attract and retain capital, even when faced with macroeconomic headwinds,” it noted.

Collective Investment Schemes also experienced a boost, driven by increased subscriptions. The report emphasised that this outcome reflects renewed investor confidence and early signs of market recovery.

“The CIS industry experienced some recovery, with subscriptions rising sharply, signalling renewed investor confidence and improved market conditions. This contrasts with 2023, when both subscriptions and redemptions reached their lowest levels, reflecting a period of subdued market activity. Redemption payouts increased in 2024 after a sharp decline in the previous year, suggesting that improved liquidity facilitated greater investor payouts. The redemption percentage of Net Asset Value (NAV), which was at its lowest in 2023, also saw a modest increase in 2024, though it remained below historical levels,” it noted.

The report further revealed that in 2024, major commodities such as maize, sesame, rice, and soybeans were actively traded compared to 2023. Maize transaction volumes, which stood at 2,311.78 metric tonnes in 2023, surged by 99.2% to 4,604.38 metric tonnes in 2024 due to increased demand, greater market access, and favourable pricing.

“Trading volumes for major commodities recovered strongly partly due to increased demand and favourable pricing. Maize trading volumes grew by 99.2 per cent to 4,604.38 metric tonnes in 2024 from 2,311.78 metric tonnes in 2023, driven by increased demand, improved market access, and favourable pricing,” it noted.

In 2024, maize prices rose by 34.2%, selling at GH₵4,396.00 compared to GH₵3,276.50 in 2023. Soybean prices surged by 107.1% to GH₵8,311.00 per metric tonne, up from GH₵4,012.50. Meanwhile, prices for sorghum, sesame, and rice remained stable within the same period.

“During the period, commodities exhibited varying price trends compared to 2023. Maize prices increased by 34.2 per cent to GH₵4,396.00 from GH₵3,276.50. Soybean prices experienced the sharpest rise, surging by 107.1 per cent to GH₵8,311.00 per metric tonne from GH₵4,012.50 due to increased export demand and rising input costs. Sorghum, sesame, and rice prices remained unchanged, pointing towards stable supply and demand dynamics in those segments of the market,” it explained.