Britam eyes retail clients in asset management growth

Business Reporter

Nation Media Group

What you need to know:

Benson Wairegi, the managing director, Monday told investors that this will complement the revenues from institutional clients where margins are thin.
Mr Wairegi said assets under management have been growing, mainly driven by pensions and collective investment schemes, but margins remain thin.
The diversified investment group runs Britam Asset Managers as a wholly owned subsidiary with operations in Kenya and Uganda having started in 2004 and 2017 respectively.

Britam Group #ticker:BRIT is eyeing more retail clients to grow margins from its asset management business in change of strategy for this competitive segment.

Benson Wairegi, the managing director, Monday told investors during the virtual annual general meeting that this will complement the revenues from institutional clients where margins are thin.

“With the margins from institutional clients remaining low, we are targeting to deepen our opportunities in the higher margin retail sector,” said Mr Wairegi.

Mr Wairegi said assets under management have been growing, mainly driven by pensions and collective investment schemes, but margins remain thin.

The diversified investment group runs Britam Asset Managers as a wholly owned subsidiary with operations in Kenya and Uganda having started in 2004 and 2017 respectively.

Britam Asset Managers offers investment advisory and fund management services and posted 55 percent growth in assets under management to Sh227 billion in the year ended December 2019.

Under asset management, Britam takes customers’ savings, pension and investments and invests over time at a commission. The firm also manages property assets.

The larger group has also invested in property and insurance in addition to the investment portfolios in Housing Finance Group #ticker:HFCK (48.4 percent) and Equity Group #ticker:EQTY (7.9 percent).

Shareholders on Monday approved payment of Sh0.25 per share, totalling Sh6330.9 million.

The payout ends a 2018 freeze given that the previous payout was in 2017.

Britam Holdings last year emerged from a Sh2.21 billion loss to post a net profit of Sh3.54 billion helped by growth in insurance revenue and appreciation of financial assets such as investment on the Nairobi Securities Exchange.