The Role on Fixed Income in Pension Scheme Investment in Ghana: A Possible Adoption for the United States Economy

Abstract

The paper investigates the role of fixed income in pension schemes investment in Ghana by specifically looking at the asset allocation and the initial investment required to make the scheme solvent in the future at a specified high probability after matching all liabilities in Ghana.Looking at the assets-only analysis of pension schemes without matching their liabilities, equity appears to be an attractive asset classes to invest in. However, considering asset-liability analysis, there is a general trend of asset allocation shifting from equities to bonds (specifically One-year bonds).

Keywords: stochastic, asset-liability, fixed-income, investment, pensions

DOI: 10.7176/RJFA/13-14-04

Publication date:August 31^st 2022