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Capital Markets

CIC unit trust widens market share to 39pc

Nairobi Securities Exchange
The Nairobi Securities Exchange. FILE PHOTO | NMG 

CIC #ticher:CIC Unit Trust has deepened its share of assets managed by collective investment schemes to 39.01 percent as that of its closest rivals stagnated in the 12 months to March.

Latest data from the Capital Markets Authority (CMA) show that CIC market share rose from the 35.1 percent it held in March last year.

Assets under CIC management rose to Sh29.78 billion in comparison with Sh22.39 billion held in similar period last year.

“CIC Unit Trust scheme managed the highest assets under management of Sh29.78 billion which represents 39.01 percent of the total assets under management,” the CMA said in its June 2020 statistical bulletin.

The rise firmed up CIC scheme’s control of the total Sh76.34 billion that is managed by the 19 active collective investment schemes regulated by the CMA.

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In contrast, closest rival Britam #ticker:BRIT , with Sh10 billion under its management, saw its market share drop slightly from 13.6 percent to 13.1 percent.

Third placed ICEA scheme’s market share reduced to 10.53 percent from 11.44 percent despite assets under its management rising by 10 percent to Sh8.04 billion.

CBA and Old Mutual, who completed the top five schemes, closed the first quarter of the year with market shares of 10.1 percent and 8.03 percent, all being drops when compared with March last year.

The top five schemes commanded market share of 80.77 per cent, leaving the rest with about Sh14.69 billion assets.

The segment’s newest player, Co-op Trust which joined in the second quarter of last year, had the lowest share (0.14 percent) but managed to more than double its assets under management from Sh5.25 million to Sh10.83 million.

Unit trusts are popular with small investors seeking management of funds within a larger diversified and more efficient pot.

During the review period, the largest portion (50.5 percent) of assets was invested in government securities, being a slight drop from 51.6 percent in March last year.

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