This archive report was first published on 7 August 2020.
On August 7, 2020, Zamara, a fund administrator, released a report showing that the average return for pension schemes in the second quarter of the year improved to 4.1 per cent, a significant turnaround from the negative return of 4.2 per cent in the first quarter.
The report, which surveyed 421 schemes with a portfolio of Sh902 billion in assets under management, attributed the improved performance to the recovery of the equities market.
The Nairobi Securities Exchange (NSE) experienced a slight recovery in the second quarter, with its All Share Index (NASI) gaining by 4.4 per cent despite the sustained uncertainty brought about by the Covid-19 pandemic.
Three-month equity returns averaged 5.5 per cent, while offshore investments had a return of 26.8 per cent. Fixed income, which is popular with pensions due to its low risk, had a return of 3.3 per cent.
However, returns from NSE investments may come under pressure in the current quarter unless the market pulls a recovery, as the NSE 20 share index hit a 17-year low on Tuesday.
