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Unit trusts pile into bank deposits on higher rates
Fund managers say they are now getting rates of up to 18 per cent on deposits from banks, beating the average returns of about 16 per cent offered on Treasury bills.
Collective investment schemes raised the share of assets under management held in form of cash and demand deposits threefold to Sh35.3 billion in the 12 months to March 2024, chasing the high interest rates on deposits being offered by liquidity hungry banks.
New data on unit trust assets published by the Capital Markets Authority shows that the 29 funds now have 15.7 per cent of their total assets under management (AUM) of Sh225.4 billion in cash at the end of quarter one, up from 6.6 percent or Sh10.85 billion in March 2023.
