Kenya Pension Funds Too Big on Bonds, $39 Billion Firm Says
- Funds are light on stocks, offshore holdings, says Allan Gray
- Retirement funds are well short of cap on overseas investments
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Kenyan retirees may be missing out on better returns because of the over-emphasis local pension fund managers place on domestic fixed-income assets, according to money manager Allan Gray.
Retirement fund managers in East Africa’s largest economy invested less than 2% of their assets offshore, well short of the 15% allowed by the industry regulator as of the end of 2018, figures from the country’s Retirement Benefits Authority show. They cut allocations to equities to 17%, the lowest in at least two years, while stepping up exposure to government securities to 39%, the highest since December 2016.