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3 October, 2019
News

Cytonn Asset Managers Limited, the regulated affiliate of Cytonn Investments held a training for pension trustees at the Sarova Whitesands Hotel, Mombasa. The main theme of the event was to educate the trustees on how allocating to alternative investments can help increase the returns for their schemes.

Dr Edward Odundo, Director of the School of Pensions and Retirement Studies, talking about life after retirement

To kick off the event, Dr Edward Odundo, the Director School of Pensions and Retirement Studies, educated the trustees on what to look for at retirement and how to prepare for it. This includes having a post-retirement medical cover due to the unpredictability and higher frequency of illness after retirement age, and that everyone should start contributing towards this medical cover early in order to reap more benefits. Dr Odundo, who is also the former CEO of the Retirement Benefits Authority, maintained that while everyone should invest their pension funds, they should also have some assets with high liquidity to cater for personal needs as they arose. He closed off by urging attendees to pay off debts early and be on the lookout for viable income generation projects.

Simon Wafubwa, Chief Executive Officer Enwealth Financial Services Ltd, leading the attendees in a fun interactive session

Simon Wafubwa, Chief Executive Officer of Enwealth Financial Services Limited, continued with the theme of income generation as he tackled the topic of income adequacy in retirement. Mr Wafubwa reiterated that one should evaluate their income, current asset value, prioritizing one’s needs and wants and lastly planning one’s legacy and estate. He ended by stating “it is not what you get but what you do with what you get.”

Shiv A. Arora, Head – Private Equity & Real Estate at Cytonn explaining the investment process for alternative investments

Shiv Arora took the attendees through the various alternative investments avenues into which a pension scheme can invest with a focus on real estate development, private equity and real estate investment trusts.

Dennis Oluoch, Deputy Manager Supervision Department at RBA, talked about the importance of investing in an fund manager whose investment strategy aligns with the pension fund’s overall strategy. Before making this decision due diligence and good governance are some of the things to consider.

Yvonne Ondego, Project Management Associate at Cytonn introducing the attendees to Cytonn Real Estate

Yvonne Ondego, a Project Management Associate at Cytonn, took the attendees through a case study of The Alma development by Cytonn to demonstrate the steps taken in real estate development from research to exit.

Konrad Afande, Assistant Manager Investor Education and Public Awareness at Capital Markets Authority (CMA)

The second day of the trustees' training was kicked off by Konrad Afande, Assistant Manager, Investor Education and Public Awareness at Capital Markets Authority, who reminded trustees that they are responsible for the management of their schemes and they should act in the best interests of their beneficiaries. He opined that in order for trustees to do this, they must enhance their knowledge base. Mr Afande also made a case for Environmental, Social and Governance investments (ESG) stating that pension schemes are in the best position for these kinds of investments that have a social impact while earning the members adequate returns.

David Kanyi, Team leader Market Deepening at Capital Markets Authority, speaking on initiatives towards deepening capital markets

David Kanyi, the team leader, Market Deepening at Capital Markets Authority (CMA), engaged the attendees on ways of growing equity markets, corporate bonds market and how under-utilized capital locked in property can be utilized. He also took the crowd through the numerous products that CMA licenses and in which pension schemes can invest in.

Edwin H. Dande taking the attendees through Cytonn’s differentiated approach to pension fund management

Edwin H. Dande, Chief Executive Officer of Cytonn Investments, took the attendees through Cytonn’s differentiated approach to fund management. He also explained how in order for a pension scheme to grow, it needs to invest in alternative investments instead of focusing only on the traditional investments. In addition, he urged the trustees to consider having more than one manager for their funds with the different fund managers focusing on their strengths in different asset categories.

Thereafter, there followed a QnA session where attendees got all their questions addressed.

Edwin takes a question from one of the attendees

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