Stanbic Ghana launches Investment Management wing

Accra, July 10, GNA - Stanbic Ghana Limited on Thursday launched its investment management wing to mobilize long-term savings that would be channelled into the productive sectors of the economy. Known as the Stanbic Investment Management Services Limited (SIMS), the company will provide support for the growing number of corporate bodies establishing provident fund schemes and the increasing number of individuals requiring asset management services. In addition, it is to position Stanbic Ghana as a one-stop banking institution and to align its product profile to that of the larger Standard Bank Group.

There are currently 31 Investment Advisory firms licensed by the Securities and Exchange Commission. In all, the top five licensed companies control about 75 per cent of the industry in terms of funds under management.

Total funds under management in the industry grew from GH¢300 million in 2006 to GH¢390 million in 2007, a rise of about 27.5 per cent.

In a speech read on his behalf, Mr Alhassan Andani, Managing Director of Stanbic Bank Ghana, said the increasing demand for retirement products and growing disposable income had not been matched by accompanying growth of investible instruments locally. Besides, there is a shortage of practitioners and institutions that are properly versed in the tools of the trade. "SIMS is here to play that role in filling the skills (and solutions) part in the industry. SIMS will leverage on the Standard Bank's group's extensive experience in the industry," Mr Andani said. Standard Bank is the largest Fund Manager in Africa and manages assets in excess of 60 billion dollars. Mr Samuel Botchway, Head Investment Banking, Stanbic Ghana, said SIMS would introduce to Ghanaians a range of specialized investment management products. He said adequate corporate governance structures had been put in place to ensure that employees conducted their activities in an ethical and transparent manner. The structures include an independent board of directors to provide guidance to SIMS on its overall strategy and an experienced investment committee to review the investment strategies and performance of various funds.

Launching the company, Mr Ekwow Acquah-Arhin, Deputy Director General, Securities and Exchange Commission, said the assets management industry plays an important role in funds mobilization for economic ventures, as well as deepening the capital market. However, he said, studies had indicated over concentration of assets management activities in the Greater Accra Region and expressed the hope that SIMS would venture into other regions to mobilize funds. "It is our hope that SIMS would live up to the task, brave the odds and bring on board our brothers and sisters in the other regions to be part of our capital market," Mr Acquah-Arhin said.

He charged the managers to help maintain investor confidence by complying with the rules and regulations governing the industry. "You must ensure that the interests of SIMS are aligned with that of your clients, that all reporting requirements are adhered to on time and client funds are managed with professionalism," Mr Acquah-Arhin added. 10 July 08