Cytonn Asset Managers to boost pensions penetration in Kenya with launch of 3 products
Cytonn Asset Managers Limited, CAML, has launched its Pensions Businesses consisting of three products: The Cytonn Personal Retirement Benefits Scheme, the Cytonn Umbrella Retirement Benefits and the Cytonn Income Drawdown.
The Personal Retirement Benefit Scheme will target self-employed individuals in the informal sector, and professionals such as doctors and lawyers, who don’t belong to any pension scheme and are seeking a vehicle to save for their retirement; the Cytonn Umbrella Retirement Benefits Scheme will target employers who don’t have a pension scheme of their own and would like to enable their employees save for their retirement in an arrangement where the employer and employee both contribute while the Cytonn Income Drawdown Fund targets retiring members of pension schemes by offering them the alternative of investing their accrued retirement benefits and be assured of periodic income based on frequency of their choice.
This is yet another milestone by CAML in its bid to increase its regulated products offering. The launch of the pensions business that is regulated by the Retirement Benefits Authority (RBA) goes a long way towards the actualization of the firm’s objectives, which is to deliver above average returns to its clients.
Speaking during the launch, David K. Mwakitele – Head of Pensions at CAML noted,
“We are proud to expand our pension product portfolio, in line with our core objective of delivering above average returns to all our clients, including our pensioners. We shall bring the same Cytonn ethos of delivering above average returns and focusing on the interest of the client in the management of these funds. As Cytonn Asset Managers Limited, we remain committed to supporting the Authority in enhancing education to the public on the importance of saving for retirement to secure their financial future post-retirement and consequently enabling more people to save for their retirement.”
The Principal Officer, Victor Odendo said that
“The launch of our pensions business now gives Cytonn Asset Managers a comprehensive set of products to deliver. Our Fund Management license from CMA enables us to launch the Unit Trust Business and we have seen Cytonn Money Market Fund become the #1 ranking fund by yield. We have received the REIT Manager License from CMA – we are working very hard on a REIT product, and now the Pensions license from the RBA will allow us to develop high yielding pension products for pensioners.”
On behalf of Mr. Nzomo Mutuku – C.E.O of the Retirement Benefits Authority, Mr Charles Machira affirmed the Authority’s commitment to creating quality pension products to serve the Kenyan population and increase the pensions penetration, which is currently at about 20% of the labour Mr. Machira, who is the Chief Manager of the Supervisions Department at RBA challenged Cytonn to develop products suitable for the informal sector whose participation the retirement benefits industry in less than 1%. ,
“This is a celebration of Cytonn’s commitment to developing and growing the pensions sector. I am glad to see more products coming into the market. Part of the mandate of RBA is to develop and promote the retirement benefits sector, and we are glad to work hand in hand with Cytonn Asset Managers to increase coverage for citizens,” he commented.