Capital Markets

CIC unit trust market share jumps to 41pc

BD-investment
alushula

Summary

  • Fresh data from the Capital Markets Authority (CMA) show that CIC unit trust scheme market share rose from 38.9 percent at the end of March, with Sh36.3 billion funds under its management.
  • In the 12 months to June, funds under CIC management have increased by Sh12.25 billion or 50.9 percent from Sh24.05 billion at the end of June last year.

CIC #ticker:CIC Unit Trust accounted for 41.2 percent of the sector’s market share the end of June, firming up its position as the biggest manager of the industry’s assets as its closest rivals faltered.

Fresh data from the Capital Markets Authority (CMA) show that CIC unit trust scheme market share rose from 38.9 percent at the end of March, with Sh36.3 billion funds under its management.

In the 12 months to June, funds under CIC management have increased by Sh12.25 billion or 50.9 percent from Sh24.05 billion at the end of June last year.

CIC’s growth has piled pressure on closest competitor Britam Unit Trust whose funds under management rose by Sh1.58 billion or 17.8 percent to Sh10.44 billion, trimming its market share to 11.85 percent.

Total assets under management by the collective investment schemes rose by 15.14 percent to Sh88.1 billion from Sh76.5 billion managed in the first quarter ended March.

“CIC Unit Trust Scheme led the pack managing the largest portion of the funds at Sh36.3 billion, followed by Britam Unit Trust Scheme which managed Sh10.44 billion in the same period,” says CMA report.

ICEA Lion closed in on Britam, with its assets under management rising by Sh1.76 billion to Sh9.8 billion in three months to June. The growth took its market share to 11.13 percent from 10.5 percent in March.

NCBA, Old Mutual and Sanlam complete the top six with market shares of 10.51 percent, 6.96 percent and 4.91 percent respectively.

Out of the 19 investment schemes, the top five controlled Sh71.95 billion or a market share of 81.7 per cent, leaving the rest with Sh16.15 billion assets.

Newcomer Co-op Unit trust grew funds under management from Sh10.83 million to Sh1.16 billion, joining the club of fund managers with over Sh1 billion in funds under management.

Dry Associates, Africa Alliance, Madisson Asset, Zimele, Apollo, Equity Investment and Amana Unit Trust all joined Britam in shedding market share.

As at end of June, the largest portion (43.4 percent) of the assets under management was invested in government securities with fixed deposits taking the second largest share at 35.21 per cent.

Only 7.85 per cent of the total funds was invested in securities listed on Nairobi Securities Exchange and 7.82 percent in cash and demand deposits.