Capital Markets

Co-op unit trust grows fastest as schemes pool Sh98 billion

COOPBank

Co-operative Bank branch along Haile Selassie Avenue, Nairobi. FILE PHOTO | NMG

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Summary

  • Latest data from the Capital Markets Authority (CMA) show that Co-op Unit Trust Scheme assets under management jumped 147 times to Sh1.47 billion as that of Sanlam grew 2.87 times to Sh5.74 billion.
  • Funds managed by Cytonn Money Market Fund rose by 2.3 times to Sh1.01 billion, closing the top three entities that had the fastest rise in customer money.
  • The gains came in the period that total assets under management rose 37.3 percent to Sh97.99 billion, rising prospects of hitting Sh100 billion.

Funds in unit trusts operated by Cooperative Bank of Kenya, Sanlam and Cytonn Investments more than doubled in the year to September last year, pushing the total in regulated investment schemes close to Sh100 billion.

Latest data from the Capital Markets Authority (CMA) show that Co-op Unit Trust Scheme assets under management jumped 147 times to Sh1.47 billion as that of Sanlam grew 2.87 times to Sh5.74 billion.

Funds managed by Cytonn Money Market Fund rose by 2.3 times to Sh1.01 billion, closing the top three entities that had the fastest rise in customer money.

The gains came in the period that total assets under management rose 37.3 percent to Sh97.99 billion, rising prospects of hitting Sh100 billion.

Unit trusts pool money together from many investors and are managed by fund managers who invest the in a portfolio of securities to give a return to investors.

In absolute terms, CIC Unit trust gained an additional Sh13.01 billion—the highest amount— in the year to September to close with Sh40.52 billion.

Completing the list of top six schemes whose money grew by large amounts were NCBA (Sh4.09 billion), Sanlam (Sh3.74 billion), ICEA (Sh2.63 billion), Britam (Sh2.62 billion) and Co-op with Sh1.46 billion growth.

Funds under management at CIC now account for 41.34 percent of the total funds held by all the 19 schemes in contrast with 38.5 percent in September 2019.

Both Britam and ICEA saw their market shares trimmed to 11.57 percent and 10.85 percent respectively on account of their funds growing at a slower pace.

Sanlam’s market share jumped to 5.74 percent from 2.8 percent on account of gaining additional funds, while Co-op trust moved from 0.014 percent to 1.47 percent.

The review period, however saw Old Mutual, African Alliance, Equity Investment and Amana Unit trust record a combined Sh0.96 billion decline in their fund size.

As at end of September, 44.03 per cent of the total assets was invested in government securities with fixed deposits taking the second largest share at 39.78 per cent.