Collective investment funds hit Ksh.141 billion

Kenyans have raised the value of assets held in collective investment schemes (CISs) or mutual funds to Ksh.140.7 billion.

This to grow invested funds by 4.5 per cent in three months to March 2022 from Ksh.134.7 billion at the end of December last year according to new data from the Capital Markets Authority (CMA).

Year over year, the collective investments have grown by 26.6 per cent from Ksh.140.7 billion in March of 2021.

CMA has attributed the continued growth of investment funds to their appeal of delivering annualized returns above 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.

CIC Unit Trust Scheme remains the leading CIS with assets under management of Ksh.56.9 billion.

During the three months cycle, Sanlam Unit Trust Scheme recorded the largest assets growth at 18.5 per cent bringing the value of pooled funds to Ksh.10.2 billion.

Collective Investment Schemes allows investors to pool funds together and spread them over a range of assets including bonds, equities or cash.

The bulk of local CISs has split funds between securities issued by the government and fixed deposits at 45.6 and 43.3 per cent respectively.

The balance of funds is distributed to assets such as listed securities, cash and demand deposits, other CISs, off-shore investments, immovable property and unlisted securities.

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