Funds being managed by the 45 collective invest schemes (CISs) in the country reached a whopping Ghc494.6 million plus in 2014, representing some 36.45% increase over that of 2013, which stood at Ghc362.5 million.
The CISs, comprising of 27 mutual funds and 18 unit trusts mobilized Ghc132.13 million in 2014 alone.
Chairman of the Securities and Exchange Commission (SEC), Dr. Adu Anane-Antwi disclosed this at the launch of the CDH Balance Fund by CDH Asset Management.
He noted that three more mutual funds have been licensed this year and he expects that they would also help to mobilize more funds for long-term capital investment, something which is not very common in Ghana, according to him.
Dr. Anane-Antwi noted that prior to year 2000, Ghanaians shied away from long-term capital investment, but mutual funds and unit trusts saved the day and now people are putting their moneys into long-term investment through CISs.
He noted that to help expand the capital market, SEC has worked with the Ghana Stock Exchange (GSE) to establish a special trading platform called Ghana Alternative Exchange (GAX) for small and medium enterprises (SMEs).
“The market, which will soon be launched by GSE has various incentives to attract SMEs to use it to raise capital to expand their operations. I encourage all SMEs to take advantage of this market to grow their businesses,” he said.
Dr. Anane-Antwi said the SEC is also working with the Ghana Real Estate Developers Association (GREDA) to use the Ghana Stock Exchange to set up real estate mutual fund to enable Ghanaians invest in the real estate industry.
The SEC Boss however warned that the real estate mutual fund would be a closed-end one to prevent investors/shareholders from cashing out their money at random.
“Real estate developers use their moneys for materials to build and they must sell or make money from lease and rent before they can reimburse shareholders so we will not allow an open-ended situation where shareholder could just walk in any day and demand their cash,” he said.
He said SEC is also working with schools and the various fund managers to encourage investments among young people because it is becoming increasingly difficult to get older people to do long-term investment in Ghana.
In that light, he said, SEC has already established Child Finance Clubs in schools and also set up a corresponding website www.childfinanceclub.com to encourage the spirit of long-term capital investment among children.
They have also begun a Capital Market Quiz competition at the SHS level. The first one was held last years during SEC’s Capital Market Week, and it is intended to be held once every two years.
“The quiz will be alternated with the Capital Market Conference, which would also be held once every two years,” he said.
Dr. Anane-Antwi called on the 200 plus properly registered non-banking financial institutions in the country help fight fraud in the system by sponsoring weekly financial and capital investment education in the media.
“There are over 200 of you so each one would have about four years to prepare for the next opportunity to do a media campaign against the bad nuts and direct people to good institutions and investment opportunities,” he said.