Co-op subsidiary tops fund managers on NSSF 'sweet' deal

Assets under management grew from Sh121.61 billion in 2020. [File, Standard]

Co-op Trust Investment Services’ assets under management jumped by 50 per cent to hit Sh182.43 billion last year on clinching the deal to manage part of the National Social Securities Fund (NSSF) billions of shillings.

The fund, a wholly-owned subsidiary of the Co-operative Bank of Kenya, saw assets under management grow from Sh121.61 billion in 2020, making it the largest locally-owned fund management firm in Kenya.

The 50 per cent jump was the fastest among the top five fund managers, highlighting the significance of the NSSF deal. NSSF in 2021 reallocated its portfolio, dropping Britam Asset managers and picking Coop Trust, CIC Assets Management, and Sanlam.

Retirement Benefits Authority (RBA) data for December shows the NSSF reallocations thrust Sanlam to the top of the industry with Sh288.8 billion, racing past GenAfrica’s Sh270 billion.

Old Mutual Asset Managers was the third with Sh199.5 billion followed by Co-op Trust’s Sh182.4 billion to make it the largest locally-owned fund management firm. ICEA Lion Asset Management closed the top five list with Sh79.5 billion in funds under management.

RBA data shows NSSF reallocation shuffled the pecking order of fund managers as measured by funds under management. NSSF's portfolio managed by external managers grew from Sh209.8 billion to Sh240.4 billion, deepening its position as a client that tilts the fortunes of fund managers.