GenAfrica Asset Managers has reclaimed the top spot as the largest fund manager by assets under management, pushing down Sanlam Investments to second place.
Data from the Retirement Benefits Authority (RBA) shows GenAfrica assets under management grew by 38 percent to Sh375.89 billion in the year ended December 2023 from Sh272.34 billion a year earlier.
Sanlam Investments assets meanwhile slipped by 16.2 percent to Sh232.33 billion from Sh277.42 billion. GenAfrica was last on top in 2020 when it managed Sh237.6 billion and it was followed by Sanlam which held Sh226.9 billion. Sanlam then became the largest fund manager in 2021 when it had Sh288.8 billion in assets.
Last year, Old Mutual, Co-optrust and ICEA Lion rounded off the list of top five fund managers with assets under management at Sh213.18 billion, Sh206.94 billion and Sh89.19 billion respectively in the review period. According to the Capital Markets Authority (CMA), fund managers refer to entities in charge of a collective investment scheme, a registered venture or capital company.
They research and analyse the securities market and use the information to make investment decisions at a fee.
GenAfrica Asset Managers, formerly Genesis Kenya Investment Management Limited, is a 28-year old fund manager that provides investment management services to local institutional investors including the National Social Security Fund (NSSF).
As of December last year, GenAfrica managed Sh59.1 billion assets on behalf of the State backed pension fund.
Investment company Kuramo Capital Management Limited owns 90.84 percent of the company, having acquired a stake in the firm in March 2018 from Centum Investment Company Limited.
The management and staff of GenAfrica own the remainder of the fund manager’s stake.
By the end of last year, 19 fund managers who are licensed by the RBA had combined assets of Sh1.24 trillion. Other local fund managers include CIC Asset Management, Britam Asset Managers, African Alliance Kenya, NCBA, Absa and Globetec Asset Management.
The top five fund managers had a 90 percent share of total retirement industry assets under management last year.
The RBA noted a conservative stance by the fund managers in 2023 as the firms moved to manage market volatility by opting for investments in safe-haven assets.
“The investments under the guaranteed funds have been on an upward trajectory following a shift to safer assets owing to volatility in the stock market and the high interest rates,” the RBA stated in its December 2023 industry briefing.
The bulk of the fund managers’ assets are invested in government securities with other classes being quoted equities, immovable properties and guaranteed funds.
Fund managers are also cleared to invest in alternative asset classes, including commercial paper, private equity, offshore and real estate investment trusts. The assets of fund managers are expected to expand further in 2024.
“The retirement benefits assets are expected to grow in the first half of 2024 owing to the rebound of the economy, which has remained resilient despite the adverse effects of domestic and external shocks,” the RBA added.
