The Kenya Pension Funds Investment Consortium (KEPFIC) and the Fund Managers Association (FMA) have signed an agreement to share expertise in pursuing diversified investment opportunities for local pension schemes.
The MoU, signed during the recent KEPFIC 2023 Investment Conference, formalizes collaborative efforts between KEPFIC and FMA, and is expected to promote pension investments in infrastructure and alternative assets aimed at achieving diversification together with higher returns for a sustainable future for pension beneficiaries.
KEPFIC is a pension industry initiative, supported by USAID and the World Bank Group, formed to support Kenyan retirement funds to make long-term infrastructure and alternative asset investments to diversify their portfolios and seek higher returns.
It works with pension schemes to overcome challenges such as limited visibility on alternative investment opportunities, large capital requirements, and a lack of specialized investment expertise.
KEPFIC and FMA will work together to develop an alternative asset investment pipeline for schemes. KEPFIC will lead in scouting and screening of viable prospects, collaborate with the FMA in conducting independent assessments of shortlisted opportunities, and showcase these investment prospects to pension funds.
“Fund managers have a responsibility to be good stewards of retirement funds for millions of individuals. Working with KEPFIC will allow us to explore investment opportunities that have the potential to enhance investment portfolios for our pension schemes. We look forward to harnessing our collective expertise; contribute further towards diversification and responsible stewardship of pension funds,” FMA chairman Mr Patrick Kariuki, said.
