The Social Security and National Insurance Trust (SSNIT), the largest institutional investor in the economy, has announced a shift to a fixed-income-focused portfolio.
Currently, SSNIT’s portfolio stands at GH¢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 this allocation, more than doubling its fixed-income holdings to 48.8 percent while 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. This will better align us with our long-term objectives.”
In the long term, SSNIT aims to further increase its fixed-income allocation to 60 percent, while reducing equities to 26 percent and maintaining alternative investments at 14 percent.
This repositioning by the country’s largest institutional investor is expected to 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.
