FEATURED STORY

Five companies control 69.7% of the pension fund market share

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RBA Chief Executive Nzomo Mutuku during a past event. The retirement benefits industry report for the period ended December 2018 shows that five companies control 69.7% of the market share
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Sanlam Investments East Africa, Genesis Kenya Investments Management Limited (GENAFRICA), Old Mutual Investment Group Limited, Stanlib Kenya and British-American Asset Managers Limited (Britam) control 69.7% of the pension fund market share, the retirement benefits industry report for the period ended December 2018 shows.

The five companies manage the bulk of the investments portfolio with total assets under management amounting to Ksh683.47 billion.

Conversely, Sanlam East Africa retained number one spot as pension fund manager bigwig with the largest assets under management with total assets worth Ksh201.9 billion which constitute 20.60% of the total assets under fund management.

Industry regulator, the Retirement Benefits Authority (RBA) says it factored each entity according to it’s registration, the authority notes that in instances where a parent company has both an an approved insurer and fund manager, the two were considered as distinct entities.

According to the regulator, 16 fund managers and 15 approved issuers, submitted 1,236 scheme reports with a total fund value of Ksh980.06 billion representing 1.81% decrease in the total assets under fund management from Ksh 998.17 in June 2018.

However, this was an 8% increase compared to the December 2017, which the total assets under fund management was Ksh904.91 billion.

{Read: Kenyans yet to redeem Sh241b in unclaimed assets}

The total assets managed by fund managers amounted to Kshs812.61 billion while the approved issuers managed Ksh167.45 billion.

Entire outlook
On overall, the retirement benefits assets under management decreased by 0.02% from Ksh1,166.70 billion in June 2018 to Ksh1,166.49 in December 2018.

Compared to the same period last year (December 2017) the assets grew by 8% up from Ksh1,080.1 billion.

RBA attributed the decrease in the assets to volatility in the stock market of which investment in quoted equities decreased by 19.83%.

{See also: Revealed: Assets Kenyans treasure the most}

The total assets held by the National Social Security Fund (NSSF) decreased by Ksh11.47 billion in December 2018 to stand at Ksh209.89 billion from Ksh221.36 billion in June 2018 representing a 5.18% percent decline.

However, compared to December 2017, the fund registered a marginal increase of Ksh630 million in the assets from Ksh209.26 billion in December 2017.

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