Old Mutual Investment Group (OMIG) has rolled out its Alternative Investment vision targeting pension schemes seeking to diversify their investments and gain long-term returns.
This is against the backdrop of an extensive engagement campaign through pension scheme training, and investment conferences showcasing the success stories of Alternative Investment. This is part of the firm’s new commitment to help its clientele unlock possibilities while adding more value to them. Besides, it signifies Old Mutuals’ confidence in Kenya’s pension sector.
Speaking during a breakfast meeting with pension fund trustees in Nairobi, OMIG’s Managing Director Anthony Mwithiga said, “Pension schemes by their nature have longer term obligations and by extension more patient capital which is ideal for generating sustainable long term superior returns from Alternative Investments like infrastructure”. Besides, “We have done well in investing in traditional asset classes like listed shares of bonds and public markets but it’s time to diversify by focusing on Alternative Investments while not forgetting the traditional assets” said Mr Mwithiga.
In broad terms, alternative investments encompass non-traditional assets which may include Private Equity, Agri-Funds, Private Debt Funds, REITS, Impact Funds, Venture Capital, Hedge Funds, Art and Antiques, Derivatives, and Commodities among others.
To participate in the various Alternative investment funds, pension schemes need to work closely with experienced fund managers with proven track record in this unique asset class.
The rollout aligns with Old Mutuals’ commitment to pursue superior returns through alternative investments and away from traditional asset classification by identifying attractive investment opportunities overlooked by others and by carefully balancing risk against opportunity.
From a broader perspective, Alternative Investment Funds are poised to attract benefits such as broadening the investment universe through gaining access to securities and sectors absent in the public markets and combining return notice with societal impact.
Other benefits include enhancing investment returns by increasing investment performance within acceptable risk tolerance levels, reducing the volatility of portfolio returns and enhancing diversification by lowering concentration risk and returns correlation to public markets.
By carefully balancing risk against opportunity, Old Mutual seeks to leverage Agriculture, Infrastructure, Real Estate, Private Debt, Private Equity and Venture Capital to facilitate investments in agri-business, specialist housing, sustainable energy, healthcare, financial services, manufacturing and education while delivering its investment goal of superior risk-adjusted returns.
The result of this is expected to live upto the Environmental, Social and Governance (ESG) expectations by recognising environmental needs, leaving a long-lasting social impact through realising structures such as Hospitals and Schools and adding to investment governance by encouraging the government to strengthen their Governance structure and process. This is expected to stimulate economic growth that benefits communities, investors, and other stakeholders.
Old Mutual Group rebranded in May 2022, seeing it migrate from the business name UAP Old Mutual Group. The Business seeks to drive innovation in financial service solutions, which will enable African households to achieve financial stability.