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Collective Investment Funds Increases To Ksh.140.7 Billion

SK 2 years ago 2 min read

The value of assets owned by Kenyans in mutual funds or collective investment schemes (CISs) has increased to Ksh 140.7 billion.

According to fresh information from the Capital Markets Authority, this will increase invested funds by 4.5 percent in three months to March 2022 from Ksh. 134.7 billion at the end of December last year (CMA).

From Ksh. 140.7 billion in March 2021, the collective investments have increased by 26.6% year over year.

Investment funds’ sustained popularity has been attributed by CMA to their ability to produce annualized returns that are higher than the rate of inflation.

“The continuous growth of unit trusts in Kenya is testament to the increased investor awareness on the ease of entry and withdrawal of funds by investors as well as the appeal of earning returns on savings that are competitive enough to beat inflationary erosion,” stated CMA Chief Executive Officer Wycliffe Shamiah.

With Ksh. 56.9 billion in assets under management, CIC Unit Trust Scheme continues to be the most prominent CIS.

Sanlam Unit Trust Scheme experienced the biggest asset growth over the course of the three-month cycle, with an 18.5 percent increase in pooled funds valued at Ksh. 10.2 billion.

Through collective investment schemes, investors can pool their money and spread it across a variety of securities, including bonds, stocks, or cash.

The majority of local CISs have allocated 45.6 and 43.3 percent of their money, respectively, between fixed deposits and government-issued securities.

Assets including listed securities, cash and demand deposits, other CISs, offshore investments, real estate, and unlisted securities are allocated from the remaining money.

The top investment funds, including NCBA Unit Trust, Britam, ICEA, Old Mutual, and Coop Unit Trust, are among the 20 mutual funds that CMA has licensed.