SIMS boss calls for policy shift to ensure minimum allocation across asset classes
The Managing Director of Stanbic Investment Management Services (SIMS), Mr Kwabena Boamah, has called for a policy shift in investment regulations that would mandate minimum allocations across all asset classes.
According to him, such a move would enhance portfolio diversification while promoting fairness in assessing the performance of fund managers.
Mr Boamah made the call at the sixth edition of the Pension Strategy Conference, held under the theme “Building Resilient Pension Portfolios.”
Addressing the issue of diversifying investment portfolios, Mr Boamah stated: “It is time we strategically looked at asset allocations in our investments. We have to consider minimum allocations for asset classes which will force allocations into some asset classes like alternatives which have seen much less allocations by fund managers and pension trustees; a 5 percent minimum allocation of pension assets into alternatives. This will help in not only diversifying our portfolios but will also enable pension schemes support the real sector which includes some critical social interventions in the areas of health, education and economic empowerment. We need to make allocations into other investment options away from the traditional fixed income that we know.”
He also advocated for the integration of artificial intelligence (AI) in optimising portfolio allocations, particularly within pension schemes.
“In some parts of the world, AI is helping optimise asset allocation. Private equity fund managers are using AI to support research and we need to evolve and catch up with the times and make the work easier and also optimise the benefits for our pension schemes,” he said.
The Pension Strategy Conference is an annual event organised by Axis Pension Trust, bringing together stakeholders from across Ghana’s pension ecosystem. The conference provides a platform for strategic discourse, sharing best practices, and exchanging innovative ideas to navigate the country’s evolving investment landscape. Amid economic uncertainties, the event fosters knowledge-sharing and networking opportunities to drive forward pension policy advocacy.