CIC tops the list as unit trusts rises to Sh76 bn

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CIC tops the list as assets managed by unit trusts increase by 6.6 percent in the last quarter of 2019 to hit Sh76.1 billion.

The larger part of the assets under management (AUM) were in government securities, highlighting a bias for risk-free holdings while the smaller share was immovable property such as houses and lands.

“In the review period, the total asset under management by the CIS 9collective investment schemes or unit trusts) amounted to Sh76.10 billion, being a 6.58 percent increase from Sh71.40 billion reported in the previous period (Q3,2019),” said the Capital Markets Authority (CMA).

Although CIC had a modest growth of 8.03 percent during the last quarter, it was able to maintain the highest value managed at Sh29.7 billion, which represented 39.05 percent of the total AUM.

“In the quarter ended December 2019, 52.10 percent of the total assets under management was invested in government securities. The government securities include Treasury bonds, treasury bills, and infrastructure bonds. The least amount of the AUM at 0.452 percent was invested in immovable property.”

The unit trusts investment for fixed deposits were at 26.3 percent, 12.1 percent in listed securities, 2.7 percent in demand deposits, 3.7 percent in holdings under unquoted securities,2.3 percent in other collective investment schemes, 0.8 percent in offshore investment while the rest went to immovable property.


About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: Contact: +254 780216631

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