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Unit trusts defy Covid to hit Sh98b

By John Otini
Tuesday, January 26th, 2021
NSE 20-Share Index. Photo/PD/FILE
In summary
    • In quarter ended September 2020, 44 per cent of total assets under management (AUM) was invested in government securities. The government securities include treasury bonds and treasury bills.
    • New rules are needed to target property developments by pooling funds.

Sanlam Unit Trust Scheme grew fastest by 32 per cent to a total asset base of Sh5.7 billion in the three months to September last year.

This makes Sanlam the sixth largest player in the collective investment scheme, as heavy fund outflows rocked Genghis Unit Trust Funds. Coop Unit Trust and NCBA Unit Trust schemes were second and third fastest growers respectively.

Unit trusts pool investor funds in different securities for returns. Data from the Capital Markets Authority shows that Coop Unit Trust scheme grew by 27 per cent racking up Sh400 million to end with Sh1.4 billion in total assets in the three months to September.

Most capitalised

NCBA Unit Trust scheme gained 19 per cent to stand at Sh11 billion worth of total assets while CIC remained the most capitalised unit trust scheme with Sh40 billion worth of assets growing by eight per cent in the period under review.

“CIC Unit Trust Scheme led the pack managing the largest portion of the funds at Sh40 billion, followed by Britam Unit Trust Scheme which managed Sh11.34 billion in the same period,” CMA said in its latest market report.

During that period, Cyton Money Market Fund defied market noise with the regulator to rise by six per cent even as CMA urged investors to steer clear of the fund manager.

Wanafunzi investments booked 316 per cent growth to Sh672 thousand worth of capital though starting from a low base. 

Nabo Capital and Apollo Unit Trust scheme were also among the fastest growers in asset as the pandemic ravaged the economy.

Genghis saw customers pull out 15 per cent of its assets leaving it with half a billion worth of assets.

As at September 30, 2020, the total assets under management by the CIS were Sh98 billion, a significant 11.24 per cent increase from Sh88.1 billion managed in the second quarter ended June 30, 2020.

In the period under review 44 percent of the total assets under management was invested in government securities.

The government securities include treasury bonds and treasury bills. The least amount of the assets at 0.44 per cent was invested in immovable property.

CMA said last month that it sees the need to review the eligibility and regulatory requirements for different players in the Collective Investment Schemes industry.

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