CMA Lists Cytonn Money Market Among Top Three Fast Growing Unit Trusts

Kevin Namunwa | Jan 26, 2021

Funds managed by Cytonn Money Market Fund (CMMF) has more than doubled in the year to September last year, according to latest data by the Capital Markets Authority (CMA). The total funds managed by the unit trust jumped to 1.01 billion.

As per the figure, the regulator listed CMMF among the three fastest rising unit trust funds in the country. Both operated by the Cooperative Bank of Kenya, the other two top unit trust funds are Sanlam unit trust fund and Co-op Unit Trust Scheme.

Cytonn Group Chief Executive Edwin H Dande thanked CMMF investor for their contribution to this great fit.

“Thank you Cytonnaires for the continued support, this shows how Kenyans have embraced CMMF as well as the bright future of unit trust schemes in the country,” Mr Dande commented further congratulating Co-op for being the fastest growing.

The latest data from CMA shows that the total funds in regulated investment schemes have risen to almost Ksh 100 billion.

The gains came in the period that total assets under management by Kenyan unit trusts rose 37.3% to Ksh 97.99 billion, rising prospects of hitting Ksh 100 billion.

Co-op Unit Trust Scheme assets under management jumped 147 times to Ksh 1.47 billion as that of Sanlam grew 2.87 times to Ksh 5.74 billion.

Unit trusts pool money together from many investors and are managed by fund managers who invest in a portfolio of securities to give a return to investors.

In absolute terms, CIC Unit trust gained an additional Ksh 13.01 billion—the highest amount— in the year to September to close with Ksh 40.52 billion.

Completing the list of top six schemes whose money grew by large amounts were NCBA (Ksh 4.09 billion), Sanlam (Ksh 3.74 billion), ICEA (Ksh 2.63 billion), Britam (Ksh 2.62 billion) and Co-op with Ksh 1.46 billion growth.

Funds under management at CIC now account for 41.34% of the total funds held by all the 19 schemes in contrast with 38.5% in September 2019.

Both Britam and ICEA saw their market shares trimmed to 11.57% and 10.85% respectively on account of their funds growing at a slower pace.

Sanlam’s market share jumped to 5.74% from 2.8% on account of gaining additional funds, while Co-op trust moved from 0.014% to 1.47%.

The review period, however, saw Old Mutual, African Alliance, Equity Investment and Amana Unit trust record a combined Ksh 0.96 billion decline in their fund size.

As at end of September, 44.03% of the total assets was invested in government securities with fixed deposits taking the second largest share at 39.78%.

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