Cytonn Investments, an independent investments management firm through its Cytonn Asset Managers Limited has launched its Pensions Business for its members.
According to David K. Mwakitele, Head of Pensions at CAML, the focus of the pensions business is to deliver above average returns to members of its pension schemes.
“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,” said Mwakitele on Monday.
Cytonn Pension Business unveiled three more products which are Cytonn Personal Retirement Benefits Scheme (CPRBS), Cytonn Umbrella Retirement Scheme (CURBS) and Cytonn Income Drawdown Fund (CIDDF) products to the market.
The Cytonn Personal Retirement Benefits Scheme which will mainly 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 which 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; and
The Cytonn Income Drawdown Fund which will target retiring members of pension schemes by offering them the alternative of investing their accrued retirement benefits and be assured of periodic income based on the frequency of their choice.
During the launch, the Retirement Benefits Authority (RBA) said it plans to increase pension coverage from 20% to 30% by the year 2024 with a focus on the informal sector.
“The industry has grown from Sh100 billion in the year 2000 to Sh1.2 trillion this year and in our new planning period, we target to double to Sh2.4 trillion,” RBA CEO Nzomo Mutuku said.