In our quarterly pension scheme investment performance survey a sample size of 420 schemes with a total fund value of about Kshs. 723 Billion was analyzed.
Small schemes Fund value < 100 Million
Medium Schemes Fund Value 100 – 500 Million
Large Schemes Fund Value 500 Million – 2 Billion
Mega Schemes Fund Value > 2 Billion
In the second quarter Pension schemes recorded drastically lower returns compared to the previous quarter. This was largely attributed to the decline in the equities performance -8% compared to 14.8% for the first quarter of 2018.
For the fixed income asset class there was a slight decline to 3.5% compared to 3.6% in the previous quarter’s performance.
Offshore did however record a slight improvement in performance to -0.5% compared to the -1.8% of the previous quarter.
Over the 1 year period ending 30th June 2018, all the asset classes recorded a lower performance with equities, fixed income and offshore performing at 15.3%, 13.5% and 8.3% respectively compared to the previous quarter’s 1 year performance of 48.7% for equities, 15.5% for fixed income and 13.0% for offshore.
Over the 3 year period, the equities asset class recorded a slight improvement to 4.4% from 3.5% in the quarter one’s 3 year performance. As for the fixed income and offshore asset classes the 3 year performance was lower compared to the previous quarter.
As for the asset allocation, majority of the pension schemes’ funds are in the fixed income asset class.
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