The Capital Markets Authority (CMA) is working on proposals for unit trusts such as money market funds to obtain an investment rating, providing investors with a risk profile of the 320 funds that are managing over Sh1 trillion in wealth.
The capital markets regulator reckons the fund and investment manager ratings will be an added layer of protection for ordinary investors who lack the sophistication to evaluate risks in unit trusts, which include money market funds (MMFs), balanced funds, equity and fixed-income funds and special funds.
