- The state-controlled fund is a major contributor to private funds, which charge management fees for their services.
- BAAM was NSSF’s largest external fund manager until the asset reallocation.
- In November, NSSF chief administrator Anthony Omerikwa said the change came after the implementation of normal procurement processes for management services.
Funds managed by British American Assets Managers Limited (BAAM) halved in 2021 after the firm was removed by the National Social Security Fund from the list of investment managers hired to oversee its portfolio.
BAAM’s asset pool has grown from Sh154.6 billion in December 2020 to Sh79.1 billion last year, according to the latest industry data from the Retirement Benefits Authority (RBA).
The National Social Security Fund (NSSF) is the largest pension fund in Kenya with assets worth 290.3 billion shillings, of which 240.36 billion shillings are managed by contracted fund managers, and the rest is invested internally.
The state-controlled fund is therefore a major contributor to private funds, which receive management fees for their services. In 2020, NSSF spent 355.7 million shillings on fund management fees.
“Assets managed by BAAM fell drastically from June 2021 due to the loss of business of NSSF where it managed over 82.28 billion shillings as of December 2020…Sanlam Investment East Africa Ltd and CIC Assets Management Ltd join the list of fund managers managing NSSF funds after exit from BAAM,” RBA said in its December 2021 industry report.
BAAM was NSSF’s largest external fund manager until the asset reallocation.
In November, NSSF chief administrator Anthony Omerikwa said the change came after the implementation of normal procurement processes for management services.
NSSF’s assets are primarily deployed in government securities, listed equities and a portfolio of prime land and property in Nairobi and other urban centres.
Following the acquisition of part of BAAM’s NSSF business, Sanlam was able to regain its position as the leading private fund manager with assets under management of 288.8 billion shillings, ahead of GenAfrica Asset Manager at 270.4 billion shillings.
In 2020, GenAfrica was in the lead with assets worth 237.7 billion shillings, with Sanlam at 227 billion shillings.
Overall, total pension sector assets increased by 10.6% in 2021 to reach Sh1.547 billion in December 2021, boosted by investment in fixed deposits and rising equity valuations.
Government securities accounted for the largest share of assets under management at 45.7%, followed by guaranteed funds at 16.79%.
Listed shares and real estate represented 16.45% of assets at the end of the year.