Investment experts have advised retirement schemes to monitor goings-on within financial markets and their sponsors (companies) to help craft a Covid-19 survival strategy.
Nairobi Securities Exchange (NSE) chief executive Geoffrey Odundo, Cytonn Investments chief investments officer Elizabeth Nkukuu and wealth management firm Enwealth chief executive Simon Wafubwa said ageing savers were looking up to the schemes to wade through the Covid-19 pandemic.
The crisis has seen tens of companies close shop and send staff on forced leave while some staff have taken salary cuts with casuals being relieved off their duties.
Investment experts have advised retirement schemes to monitor goings-on within financial markets and their sponsors (companies) to help craft a Covid-19 survival strategy.
Nairobi Securities Exchange (NSE) chief executive Geoffrey Odundo, Cytonn Investments chief investments officer Elizabeth Nkukuu and wealth management firm Enwealth chief executive Simon Wafubwa said ageing savers were looking up to the schemes to wade through the Covid-19 pandemic.
The crisis has seen tens of companies close shop and send staff on forced leave while some staff have taken salary cuts with casuals being relieved off their duties.
During an Enwealth-convened webinar conference, the speakers said retirement schemes must be alive to every development within sponsoring companies to inform future investments thereby enabling them to have adequate cash flows to meet emerging demands.
Mr Odundo warned against haphazard disposal of stakes held in listed companies saying pension schemes risk suffering heavy losses by selling stocks at low prices.
“Large sell-downs of investment at the moment is not an option because the pension schemes will not realise any returns but losses,” he said during the webinar that looked into the Covid-19 impact on retirement schemes and financial markets.
Mr Wafubwa urged schemes to carefully manage member expectations by communicating regularly on goings-on in the market that affect investments.
He said investments should be done after thorough consultation between trustees and fund managers.
“There should be an immediate investment risk mitigation to accommodate instances where layoffs take place. Seek to achieve realistic scheme funding levels for sustainable solvency,” he said.
Ms Nkukuu added low valuations, especially in the financial services sector portends huge opportunities that retirement schemes can invest in.
“But investors must be willing to wait for long periods to realise value as the current environment will see equities remain low as capital flees to safer havens,” she said.
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