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14.04.2012 Business & Finance

Enterprise Trustees Targets Large Market Share

By Maxwell Adombila Akalaare - Daily Graphic
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Enterprise Trustees Limited, one of the institutions licensed by the National Pensions and Regulatory Authority (NPRA) to operate the second and third tier pension scheme, has set for itself a target to attain at least 40 per cent market share in the trustee business.

Such a target, if achieved, could possibly make the company the market leader among the various institutions that have been mandated by the NPRA to hold a part of workers’ pensions in trust for their individual employers.

The Executive Director of Enterprise Trustees, Mr Kwaku Yeboah-Asuamah, who disclosed this to, added that the company had since March 16 received over 30 commitments, most of which he said were expected to result in businesses to the company.

He, however, admitted that achieving such a target was not easy but insisted that the company had the right resources and expertise to control 40 per cent stake in the trustee market.

“Competition in the sector is already tight and we are aware of that,” he said.

To win that competition and realise its target of becoming a market leader, Mr Yeboah-Asuamah said his outfit was aiming at leveraging the vast experience and track record that the Enterprise Group Limited (EGL) –the parent company of Enterprise Trustees –has attained in the financial sector.

Added to that, he said the company had also assembled “a young and dedicated team with the relevant expertise to prosecute its business.”

Mr Yeboah-Asuamah said in addition to managing the pensions of formal employees, the Enterprise Trustees “is also going to create a vehicle that will give persons in the informal sector the opportunity to do long term investments to cater for their future needs.”

While thanking the NPRA for giving the opportunity for institutions like Enterprise Trustees to go into pension businesses, Mr Yeboah-Asuamah said the authority’s decision to limit trustees to less risky businesses such as government bonds was rather going to slow down their revenues.

“The risky areas bring higher returns and we think that it will not be out of place to allow us some space so that we can go into shares and other areas that yield high returns,” he said.

He also called on the NPRA and other trustees to join hands in educating the public, especially employers and employees, on the demands of the new pension law.

That, he said, would enable more participation from the general public, the very people the current regulation affects.

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