The collective investment sector (CIS) has seen growth, with assets under management growing by 24.5% to KES 316.4 bn as of 30th September 2024 from KES 254.1 bn recorded in 30th June 2024, according to the recently released quarterly report of CIS by Capital Markets Authority (CMA).
Money Market Funds (MMFs) remain the leading investment vehicle, although their share dropped to 62.2% in September from 67.4% in June, now totaling KES 196.8 bn in September from KES 171.2 bn. Other fund types, including Fixed Income Funds, Equity Funds, and Balanced Funds, held steady at a combined 32.6% of the market. Fixed Income Funds were the largest among these, with assets worth KES 53.5 bn, followed by Equity Funds, with assets worth KES 2.3 bn, Balanced Funds, with assets worth KES 1.3 bn, and Other Funds, with assets worth KES 63.4 bn.
This growth is attributed to the CMA’s approvals for new funds, the introduction of additional CIS funds in previous quarters that commenced reporting in Q3 2024, and the overall expansion of existing funds. Additionally, Standard Investment Bank’s Mansa X funds were restructured as Mansa X special CIS funds, adding to the portfolio diversity within the industry.
Cytonn unit trust fund also registered growth in AUMs recording 19.6% growth to KES 1.5 bn in September from KES 1.3 bn in June. Cytonn MMF continues to perform well in the market giving investors an annual rate of above 18% which provides a buffer against inflation which currently stands at 2.7% as of October.
CIC Unit Trust Scheme led in market share among Unit Trusts, holding 22.3% with assets totaling KES 70.3 bn. Faulu Unit Trust Scheme achieved the highest growth in this period, growing by 372.7% to KES 239.5mn in September from KES 50.7 bn in June, while MyXeno Unit Trust experienced the most significant decline, declining by 19.3% to KES 13.0 mn from KES 16.1 mn.
The third quarter saw four new Unit Trust Schemes entering the market, bringing the total active funds to 35 out of 54 approved schemes. These new entrants, including Stanbic Unit Trust Scheme, Arvocap Unit Trust, Mansa x and Taifa Unit Trust, introduced substantial new capital into the market.
Investment distribution within CIS assets reflected a preference for secure, income-generating investments. Government securities accounted for the largest share at 41.4%, with fixed deposits following at 31.1%. Off-shore investments saw the most notable rise, surging by 4282.0% to reach KES 19.6 bn, largely due to the restructured Mansa X special CIS funds, which placed KES 18.9 bn offshore.
A Collective Investment Scheme (CIS) is an investment vehicle where money is pooled together from investors and invested in a wide range of assets and the portfolio collectively managed by a professional fund manager.
