Cytonn unit trust assets shed Ksh.182 million

Cytonn unit trust assets shed Ksh.182 million

Cytonn Investment CEO Edwin Dande

The value of assets held by the Cytonn Unit Trust Scheme has fallen to Ksh.772 million from a higher Ksh.960.2 million in three months to the end of September.

This is according to new data from the Capital Markets Authority (CMA) quarterly statistical bulletin covering three months from July.

The 19.6 per cent slide in the assets under management largely mirrors withdrawals by clients which have been triggered primarily by turmoil in part of Cytonn’s investment portfolio.

Cytonn Investments Chief Executive Officer Edwin Dande has for instance previously warned of the ramifications on investor confidence as he took on the Capital Markets Authority (CMA) over the management of its privately issued funds.

The funds represented by the Cytonn High Yield Solutions (CHYS) and the Cytonn Project Notes (CPN) which are now illiquid have for instance been recently placed under the custody of a High Court appointed administrator on a voluntary basis.

This is as the management of Cytonn deems the move as critical in safeguarding value of invested shareholders by preventing attachment or auction of assets in the pair of funds.

Further, assets held in Amana Unit Trust Funds, another troubled unit, have continued to decline in the quarter as its value shrinks by another 40.4 per cent to Ksh.45.1 million as of the end of September.

The value of assets under management in the unit were valued at a higher Ksh.75.6 million at the end of June.

In spite of the significant dip in assets held in the two units, the total value of assets held in all 19 approved collective investment schemes in the quarter has stretched to Ksh.117.8 billion from Ksh.111.1 billion in June.

43 per cent of the assets in the schemes are invested in government securities.