SSNIT Announces Shift To Fixed-Income-Focused Portfolio

The Social Security and National Insurance Trust (SSNIT), the largest institutional investor in the economy, has announced a transition to a fixed-income-focused portfolio.

SSNIT’s portfolio totals GHS 16.7 billion, with 49.3 percent in equities, 34 percent in alternative investments, and only 16.7 percent in fixed income.

However, SSNIT plans to significantly rebalance its portfolio in the near term, more than doubling its fixed income allocation to 48.8 percent and substantially reducing its equities and alternative investments.

During a recent media briefing, SSNIT Director-General Kofi Bosompem Osafo-Maafo explained the trust’s new strategy. “The plan is to reduce our real estate and equity investments, reallocating to fixed income, which offers greater stability,” Osafo-Maafo said.

“This will better align us with our long-term objectives.”

As the strategy unfolds, SSNIT aims to further increase its fixed income allocation to 60 percent in the long term, while reducing equities to 26 percent and maintaining alternative investments at 14 percent.

As the country’s largest institutional investor repositions its portfolio, it may create ripple effects across various economic sectors.

The move toward fixed income could potentially impact liquidity in the equity markets and real estate sector while boosting demand for government and corporate bonds.

Source: Citinews

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