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Unit trusts sell bonds to buy stocks as interest rates drop
Unit trusts have proved a popular investment class in the country with 1.2 million Kenyans signing up to the CIS as of June, according to data from the CMA.
Collective investment schemes (CIS) or unit trusts have sold part of their bond holdings, to invest in Nairobi Securities Exchange-listed stocks amid a decline in returns from government securities including Treasury bills and bonds.
Data from the Capital Markets Authority (CMA) third quarter statistical bulletin, published yesterday shows the proportion of listed securities held by unit trust funds increased by more than five-fold or 523 percent to Sh23.7 billion in the quarter ended June from Sh3.8 billion in March this year.
