Four unit trust schemes lose Sh1.1bn assets in three months

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Unit trust schemes run by Co-op, African Alliance Kenya and Cytonn saw the largest drop in assets under management in the three months that ended September 2022 compared to the prior quarter.

Co-op’s fund declined by Sh383.8 million or 10.3 percent to Sh3.3 billion, according to the statistics from the Capital Markets Authority (CMA).

African Alliance was next, shedding Sh266.8 million or 15.3 percent to Sh1.4 billion.

Cytonn was third, losing Sh258.1 million in absolute terms equivalent to 33.4 percent to close at Sh513.2 million.

In terms of percentages, Cytonn had the largest decline among the collective investment schemes.

The latest shrinkage adds to a series of client exits that have pulled down Cytonn’s assets from highs of 960.2 million in the quarter that ended March 2021 despite the fund manager consistently posting the highest returns of above 10 percent.

Lawsuits and losses have engulfed other businesses under the umbrella of Cytonn Investments Management Plc, potentially hurting its brand of regulated money market fund.

Cytonn High Yield Solutions LLP and Cytonn Real Estate Project Notes LLP, which raised a total of Sh15.2 billion from debt investors, went into administration which was being fought by some of their creditors.

A recent court ruling ended the administration and preserved the real estate assets of the investment vehicles until their creditors are compensated.

Old Mutual lost Sh199.5 million or 2.8 percent to Sh6.6 billion.

NCBA, CIC and Sanlam, meanwhile, led the firms that added assets in the quarter that ended in September.

The assets managed by NCBA expanded by Sh3.5 billion or 17.5 percent to Sh20.1 billion.

Those of CIC increased by Sh3.1 billion, equivalent to 5.5 percent, closing at Sh60.2 billion and further entrenching the fund manager’s dominance in the collective investment schemes market.

“CIC Unit Trust Scheme maintained the lead in managing the highest assets under management of Sh60.27 billion, which represents 38.87 per cent of the total,” reads part of the CMA report.

Sanlam was third, adding Sh1.8 billion in what saw the fund close with a portfolio of Sh14.5 billion.

In total, the schemes grew their assets by Sh9.3 billion or 6.3 percent to Sh155 billion.

Fixed deposits were the top allocation for the funds at Sh63.3 billion as they made changes to their portfolios including buying more listed equities and cutting back on government debt securities.

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Note: The results are not exact but very close to the actual.