Private Pension Funds increased by 45.39 percent from a total of GHS 4.672 billion in 2015 to GHS 6.793 billion in 2016.
Currently the private pension funds are made up of funds accrued in the Temporary Pension Fund Accounts (TPFA) and total Assets under Management (AUM) by licensed trustees.
Over the period under review, the AUM by trustees increased by 74.78 percent from a total of GHS 2.359 billion in 2015 to GHS 4.123 billion in 2016
According to sources at the National Pension Regulatory Authority (NPRA), the AUM, in 2016, increased, partly due to compliance on the part of employers; this is as a result of the heightening of education and sensitization on the pension scheme.
The increase is also partly attributable to the transfer of funds from the TPFA – managed by the Bank of Ghana, to the AUM – managed by the corporate trustees.
From 2012, the National Pensions Regulatory Authority (NPRA), begun the transfer of some funds accrued in TPFA to AUM.
In 2016, the corporate trustees had a total AUM of GHS 3.842 billion, with Enterprise Trustees holding a market share of 28.50 percent, as Axis Pension Trust, Petra Trust Limited, and United Pension Trust holding 16.20, 13.53 and 12.80 percentage points respectively of the market share.
Under the Tier 2 AUM for 2016, Enterprise Trustees held 30.05percent of the market share, as Petra Trust Limited, United Pension Trust and Axis Pension Trust held 14.02 11.85 and 11.11 percent respectively of the market share.
In the Tier 3 category of the AUM, Enterprise Trustees own GHS 431million, representing 26.42 percent of the market share whilst the Axis Pension Trust, United Pension Trust and Petra Trust held 23.19, 14.10 and 12.88 percent of the market share.
The total membership of the corporate trustees in 2016 stood at 1,380,137 as more than 50 percent of the market share was held by Pensions Alliance Trust (25.86 percent) and Enterprise Trustees (25.40 percent).
In the category of Pension Fund Custodians of the AUM, Standard Chartered Bank held 27.14 percent of the total GHS 4.123 billion, followed by Stanbic Bank, 20.14 percent, HFC Bank, 13.29 percent, and Ecobank, 11.80 percent.
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