Diversified Assets
KenGen DB is one of the country’s largest pension fund with investments in both capital and real estate. The Board has developed and follows investment strategies with an asset allocation policy that targets the percentage of funds invested in each asset class. This consistency has enabled us to post a history of stellar performance for the long term.
Investment Strategy
Investment Objectives Drive Investment Strategy
The Scheme’s investment mandate is outlined in our Investment Policy Statement and is consistent. The key objective of our investment’s strategy is to help the Scheme meet its long-term funding needs. Therefore, we strive to:
- To maintain the funding position of the Scheme on an ongoing basis to at least 100%
- To maximize the returns on investments within reasonable and prudent levels of risk acceptable to the Trustees
- To aim to preserve invested capital
The Board ensures Risk Management is in place to reinforce the Scheme’s key investment strategies by:
- Investing in a diversified portfolio of assets which includes equities, debt and real estate
- Active fund management to add value – the Board uses several strategies to maximize returns within the Scheme’s risk limits and to outperform the markets we invest. Fund Managers are rewarded for maximizing value-added returns within their own sub-portfolios.
- Ensuring adequate liquidity - the Scheme maintains an adequate proportion of its assets in marketable securities to meet payments and this is reported regularly to the Strategy & Investments Committee of the board.
Performance
Investing to ensure sufficient and sustainable benefits for Scheme Members
Our goal is clear: To use investment strategies (link 1) to increase value of assets so that Scheme can meet its long-term funding needs.
We report publicly on our investment performance on an annual basis following the end of each calendar year. Our most recent annual report was for the year ended December 31, 2018 is as attached.
The graphs and tables below summarize key aspects of our assets and performance.
5-year Net Assets Growth as at 30th Sep 2019
Total Rate of Return (as at 31st Dec 2018)
| 1 Year | 3 Year | |
|---|---|---|
| Total Fund net Return | 5.41% | 9.88% |
Net Investments and Rates of Return by Asset Class
| Net Investments (Ksh Billions) | Rates of Return | |
|---|---|---|
| 2018 | 1 Year | |
| Equities | (15.78%) | |
| Interest-Bearing Assets | 13.44% | |
| Property | 9.22% |
Diversified portfolio of assets
