State pension fund dropped Britam asset managers from its lucrative fund management business and reallocated nearly Kes93 billion to Co-Op Trust Investments, CIC, and Sanlam.
A report by the Retirement Benefits Authority shows that Britam lost a Kes82.2 billion National Social Security Fund (NSSF) portfolio last year.
The pension fund then selected Co-Op trust and allocated them Kes46.8 billion by December 2021, CIC got Kes133 million while Sanlam is now managing Kes46 billion of the portfolio.
The pension fund retained GenAfrica, Old Mutual, and Africa Alliance which together with the new fund managers are holding Kes240.3 billion assets of the State pensioner by December 2021.
NSSF internally managed assets amounting to Kes49.94 billion in immovable property (Sh44.21 billion); quoted equities (Sh4.17billion); fixed deposit (Sh1.05 billion) and unquoted equities (Sh497.68 million).
“SANLAM Investment East Africa Ltd and CIC Assets Management Ltd join the list of fund managers managing NSSF funds after the exit of the British American Asset Managers Ltd,” RBA said in an industry report.
The NSSF assets, which make up 16 percent of the Sh1.4 trillion pension assets affect the portfolios of the 17 listed fund managers.
NSSF uses six fund managers for the Kes240.3 billion portfolio and the movement of the assets has made Sanlam the biggest fund manager last year with Kes288.8 billion in assets up from Kes226.9 billion in 2020.
Sanlam overtook GenAfrica whose assets rose from Kes237.6 billion in 2020 to Kes270.3 billion while Old Mutual came third with Kes199.5 billion in assets.
The new rankings place Co-op Trust Investment Services, a wholly-owned subsidiary of the Co-operative Bank of Kenya, as the largest locally-owned fund management firm in Kenya.
With extra business from NSSF, Coop Trust Investment Services overtook British American Assets Managers with Kes182.4 billion from Kes121.6 billion in 2020.
Britam dropped drastically from Sh154.6 billion in 2020 to Sh79.1 billion last year due to the loss of business by NSSF where it was managing over Sh82.28 billion in December 2020.
ICEA lion which does not handle the NSSF portfolio is also now ahead of Britam with Sh79.5 billion assets under management.