Pension funds have recorded the highest first quarter return in five years on the back of a good performance by equity investments at the Nairobi Securities Exchange, Business Daily Africa reported this weekend.
Industry data compiled by Actuarial Services East Africa (Actserv) shows pensioners enjoyed a return of 6.7 per cent in the three months to March, compared to 2.5 per cent in the same quarter of last year.
The last time the quarter one return crossed the five per cent mark was in 2013, when it stood at 7.9 per cent. “Equities at 14.8 per cent was the best performing asset class compared to fixed income (3.6 per cent) and offshore assets (-1.8 per cent) in the three months to March,” said Actserv in its report.
In the first quarter of 2017, equities had given the funds a paltry return of 0.2 per cent, fixed income 3.1 per cent and offshore 8.7 per cent.