The Social Security and National Insurance Trust (SSNIT), the country’s largest institutional investor, has announced a significant transition towards a fixed-income-focused portfolio.
This is set to reshape SSNIT’s investment strategy and create ripple effects across various economic sectors.
Currently, SSNIT’s GH¢16.7 billion portfolio is heavily weighted with 49.3 per cent in equities, 34 per cent in alternative investments, and only 16.7 per cent in fixed income.
However, under the new strategy, SSNIT plans to more than double its fixed income allocation to 48.8 per cent while significantly reducing its exposure to equities and alternative investments.
SSNIT Director-General Kofi Bosompem Osafo-Maafo elaborated on the shift during a recent media briefing, stating, “The plan is to reduce our real estate and equity investments, reallocating to fixed income, which offers greater stability. This will better align us with our long-term objectives.”
The long-term strategy aims to boost SSNIT’s fixed income allocation to 60 per cent, reduce equities to 26 per cent, and maintain alternative investments at 14 per cent.
This adjustment is intended to provide more stability and predictability in returns, aligning with the trust’s long-term financial goals.
Mr. Osafo-Maafo underscored the broader economic benefits of the new strategy, saying, “As we shift towards fixed income, we expect increased stability and predictability in our returns, which will ultimately benefit our stakeholders and align with our mission to secure the financial future of our members.
