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Pension funds in riskier assets score higher returns
In the 2025 equities market, funds enjoyed capital gains on their portfolios as the bourse added Sh1 trillion or 51.8 percent in investor wealth to Sh2.94 trillion.
Pension funds that allocated a bigger share of their assets to equities and offshore assets secured a returns premium of up to four percentage points in 2025 compared to their peers who adopted a conservative strategy heavy on government bonds and cash deposits.
Analysis of pension fund returns done by fund administrator Zamara and Actuarial Services East Africa (Actserv) shows that the funds that aggressively chased returns through the riskier assets, such as equities, made a weighted average return on investment of 28.3 percent, beating the industry average of 26.3 percent.
