Love your country from afar Why successful investing is by textbook not emotion Over my years advising pension scheme in many countries, one question keeps coming up: am I being unfaithful to my country by investing overseas?  The answer is categorically no. ...

Or the importance of the Investment Policy Statement During my 30+ year career working first as an actuarial consultant then as a director in asset management, I have worked with pension schemes in many countries, including for the last decade those in several...

The Kenyan institutional investor has their work cut out. Operating in a high interest rate environment entails their fixed income instruments are subject to discounts and potential principal erosion. Moreover, base rate hikes by the central bank are expected to...

Last month I wrote an article “If I could turn back time” available at https://starcapmgt.com/if-i-could-turn-back-time/ in which I presented the benefits of diversifying Kenyan portfolios to the maximum with international assets.  The principal justification is...

A year ago Star Capital completed gaining its licences and opened for business.  Of course, the origins of Star Capital date to a few years earlier when three pension professionals – Andrew Slater, Stephen Tennant and Darshan Ruparelia[i] – saw how Kenyan pension...

Star Capital returns 48% in 2023International markets gave positive returnKenyan markets gave negative returnThe Kenyan Central Bank gave an early xmas present on 5 December 2023 when it raised interest rates by 2%, its largest hike since 2011, more than a decade...

“Insanity is doing the same thing over and over and expecting different results.” These words are often attributed to Albert Eistein, but that is false, there is no record he ever said them.  But it is a wise witticism nonetheless. In late August 2023 I wrote an...

So what are you waiting for (redux)1?  It is said a picture is worth a thousand words. The picture below can be summarised more briefly:  An annual shilling return of 33%The chart shows last year’s performance of the Star Capital Global Balanced Fund in both...

The one I think should be on every investor’s bookshelf is the Triumph of the Optimists. It was first published just after the millennium and authored by three professors – Elroy Dimson, Paul Marsh, Mike Staunton – at London Business School1. It has been updated and...

The case for Kenyan pension schemes to invest offshore is clear cut on diversification (the “free lunch” of investment) grounds alone. Analysis from Star Capital shows a pension scheme should be allocated around 50% offshore1. Analysis from the World Bank shows even...

Last year was a bad year in Kenyan pension scheme investment. Their portfolios concentrated in two- thirds or more in domestic fixed income showed negative returns. There is a phrase in investment circles for this risky behaviour: picking up nickels in front of a...

Once upon a time it looked good on paper.  A pension scheme has assets and a fund manager is expert in managing assets.  The trustees can achieve efficient implementation through the appointment of a fund manager to invest the entire scheme assets.  This is the...

Last year, 2022, was a year of profound uncertainty in the financial markets. The year started in an orthodox fashion. Then Russia invaded Ukraine and catalysed global inflation. Whether the inflation was just a temporary spike in energy prices or whether a latent...