The pensions sector dropped in performance of various investments in the past year, a report has shown.
The decrease in the assets during the half-year was attributed to the volatility in the stock market of which investment in quoted equities decreased by 19.83 per cent.
The performance is, however, better than the year before, with marginal increases recorded.
The top five fund managers during the period were Sanlam Investments East Africa, GenAfrica Asset Managers, Old Mutual Investment Group Limited, Stanlib Kenya, and British – American Asset Managers with 69.7 per cent of the pensions portfolio, with Sh 683.47 billion in assets under management.
According to the report, retirement benefits assets under management decreased by 0.02 per cent from Sh1.16 trillion last June to Sh1.16 trillion in December.
The assets under fund management include Sh125.91 billion of NSSF funds, majorly in immovable property, quoted equities, cash and demand deposits, fixed deposits, and unquoted securities.
Government securities were most popular, with the asset class recording 39.41 per cent of the total assets under management. They also accounted for the biggest share of the total assets at 39.41 per cent, followed by immovable property, which accounted for 19.71 per cent.
The entry of private equity and venture capital as an asset class has attracted investment in alternative assets.
Investment in this sector increased by 51.04 per cent from Sh422.99 million in June 2018 to Sh863.94 million in December.
The pensions authority is, however, is pushing further with measures to ensure an increase in pensions raised. They recently launched the 2019 -24 strategic plan targeting to increase pension coverage by up to 30 per cent by 2024, while growing its assets base to Sh2.4 trillion in the same duration.
