Kenya’s collective investment schemes (CIS) demonstrated robust growth in the final quarter of 2023, with total assets under management (AUM) increasing by 4.06% to reach KES 215.05 billion, according to the latest data released by the Capital Markets Authority (CMA).
“The collective investment schemes asset class continues its upward growth trajectory, as evidenced by the latest market performance data updated at the end of Q4 2023. During that reporting period, total assets under management reached KES 215.05 billion in the quarter ended December 2023, compared to KES 205.05 billion recorded in the previous quarter,” said Wyckliffe Shamiah, CEO of CMA.
The CIS market saw diverse performance among its various schemes, reflecting shifts in investor preferences and strategic asset allocations. CIC Unit Trust Scheme led the market with KES 63.33 billion in AUM, a 3.53% increase from the previous quarter, securing a 29.45% market share.
Notably, Sanlam Unit Trust Scheme recorded the highest growth among the top five, with a 19.82% increase in AUM to KES 25.13 billion. This robust performance raised its market share to 11.68%. ABSA Unit Trust Funds also posted significant gains, growing by 22.49% to KES 5.3 billion, highlighting its aggressive expansion strategy.
Meanwhile, Britam and NCBA Unit Trust Schemes experienced declines in their AUMs, by 4.94% and 4.16% respectively. Despite this, they maintained substantial market shares, with Britam holding 14.74% and NCBA 14.38%.
Emerging funds such as Lofty-Corban Unit Trust and GenAfrica Unit Trust Scheme exhibited remarkable growth rates of 86.86% and 98.15% respectively, indicating a growing appetite for niche investment products. The Enwealth Capital Unit Trust saw an extraordinary increase of 195.56%, albeit from a smaller base, reflecting its strategic positioning and investor attraction.
Additionally, Cytonn Unit Trust Scheme saw a notable growth of 13.51%, increasing its AUM to KES 866.12 million. This performance highlights Cytonn’s ability to attract and manage funds effectively, despite operating in a competitive market.
Wyckliffe Shamiah highlighted the distribution of funds under management: “Much of the funds under management were allocated to securities issued by the Government of Kenya, comprising 47.00%, while 34.50% was invested in fixed deposits. The remaining 18.50% was distributed among other asset classes such as cash and demand deposits.”
The CIS sector’s expansion is a positive indicator of investor confidence and market stability, despite global economic uncertainties. The data reveals a vibrant and competitive landscape, with both established and new players maneuvering to capitalize on market opportunities.
The significant growth in AUM among smaller funds reflects a trend towards diversification and specialization in investment strategies. Investors are increasingly seeking tailored products that offer potentially higher returns, contributing to the overall dynamism of the sector.
