GenAfrica Asset Manager overtook the National Social Security Fund (NSSF) in portfolio size at the end of June, marking the first time the public fund has fallen behind a private fund manager in almost seven years.
Data from the Retirement Benefits Authority (RBA) shows that GenAfrica had assets under management worth Sh353.8 billion on its books as of June, compared to NSSF’s Sh308.26 billion.
As of December 2022, NSSF occupied the top spot with assets under management worth Sh295.65 billion, ahead of Sanlam Investments East Africa with Sh277.42 billion and GenAfrica with Sh272.35 billion.
NSSF has led the AUM sector since late 2016, when it regained the position it ceded three years earlier to PineBridge Investments East Africa, which was acquired in 2017 by the financial services group South African Sanlam and renamed Sanlam Investment East Africa Ltd. .
GenAfrica’s increase in assets, which propelled it ahead of NSSF and Sanlam, came at a time when the company was expanding into the mutual fund sector, which helped it diversify into the retail market.
“In terms of investments by specific fund managers and licensed issuers, GenAfrica asset managers held the largest share of assets under management, amounting to Sh353.80 billion, which corresponds to 22 .13 percent of the fund’s total assets under management,” the RBA said in its report. industry report for June 2023.
“Next comes Sanlam Investments East Africa Company with assets amounting to Sh260.75 billion, which corresponds to 16.31 percent of the fund’s total assets under management.”
In recent years, the two private companies have succeeded each other in the position of leading private fund manager.
Although GenAfrica now manages more assets than NSSF, some of them are actually owned by the public fund, which cedes management of the bulk of its own assets to private fund managers.
As of the end of June, NSSF’s internally managed assets stood at Sh46.61 billion, with the remaining Sh261.65 billion under the supervision of six private fund managers.
GenAfrica oversees the largest share of these externally managed NSSF funds at Sh58.98 billion, followed by Old Mutual Asset Managers (Kenya) Limited (Sh51.1 billion), Co-op Trust (50. 48 billion shillings) and African Alliance Kenya (46 shillings). .4 billion). The others are CIC Asset Management (Sh27.99 billion) and Sanlam (Sh26.67 billion).
British American Asset Managers Limited was until December 2020 the largest NSSF asset manager with Sh82.3 billion, but was removed from the list of investment managers engaged by the fund to oversee its portfolio.
This allowed companies like Co-op Trust, Sanlam and CIC Asset Management to come in and claim a share of the portfolio.