The Kenya Pension Funds Investment Consortium (KEPFIC) and the Fund Managers Association (FMA) will now share expertise in pursuing diversified investment opportunities for local pension schemes.
The Memorandum of Understanding (MOU), signed during the KEPFIC 2023 Investment Conference on Friday last week, formalises collaborative efforts between the two lobby groups.
“The purpose of the MoU is to promote pension investments in infrastructure and alternative assets aimed at achieving diversification together with higher returns for a sustainable future for pension beneficiaries,’’ they said in a joint statement.
KEPFIC is a pension industry initiative, supported by USAID and the World Bank Group, formed to support Kenyan retirement funds to make long-term infrastructure and alternative asset investments to diversify their portfolios and seek higher returns.
It works with pension schemes to overcome challenges such as limited visibility on alternative investment opportunities, large capital requirements, and a lack of specialised investment expertise.
KEPFIC will lead in scouting and screening of viable prospects while FMA will conduct independent assessments of shortlisted opportunities, and showcase these investment prospects to pension funds.
The head of the KEPFIC Secretariat and CEO, Spearhead Africa Ngatia Kirungie says they are keen to work with the FMA member fund managers and leverage their investment management expertise on commercially viable opportunities to promote the uptake of alternative assets investments in pension portfolios.
“The need for portfolio diversification has never been stronger and we are pleased to formalise the relationship between KEPFIC and the FMA as we both work towards the common goal of ensuring optimal returns for our local pension schemes,’’ Kirungie said.
FMA chairman Patrick Kariuki on the other hand said fund managers have a responsibility to be good stewards of retirement funds for millions of individuals.
“Working with KEPFIC will allow us to explore investment opportunities that have the potential to enhance investment portfolios for our pension schemes. We look forward to harnessing our collective expertise; contribute further towards diversification and responsible stewardship of pension funds,’’ he said.
Last week pension schemes were presented with deals worth Sh700 billion in alternative investment assets spanning across different sectors among them energy, affordable housing, healthcare, water and sanitation, transport and logistics, agriculture, telecoms, and ICT.
