CIC Insurance has captured more than a third of the unit trusts market, opening a wider gap with Britam’s subsidiary that has shed assets.
Fresh data from the Capital Markets Authority (CMA) show that CIC unit trust scheme market share climbed to 34.25 per cent from previous nearly 27 percent at the end of March 2019, with Sh20.9 billion funds under management.
This piled pressure on closest competitor British American Unit Trust which had only Sh8.68 billion of the total collective investment schemes’ (CIS) Sh61.04 billion assets under management. Unit trusts are popular with small investors seeking management of funds within a larger diversified and more efficient pot.
“CIC Unit Trust Scheme had the largest CIS asset portfolio valued at Sh20.91 billion, while British American Unit Trust had the second largest portfolio valued at Sh8.68 billion, accounting for 34.25 per cent and 14.23 per cent respectively,” CMA noted.
As of March last year, CIC had Sh15.4 billion under management, accounting for 26.92 per cent of total industry assets, meaning the subsidiary of CIC Holdings is now a runaway market leader. British American has lost Sh1 billion to drop. In March last year, it had Sh9.71 billion assets under management, giving it market share of 16.97 per cent.
ICEA Lion gained Sh1 billion, pushing assets under management to Sh6.98 billion and overtaking Old Mutual to position three with 11.43 per cent market share. Old Mutual market share dropped to 10.95 per cent from 13.4 per cent held in March last year as its assets under management shrunk to 6.68 billion. CBA unit trust comes fifth.
Out of the 18 investment schemes, the top five command market share of 79.36 per cent, leaving the rest with about Sh12.5 billion assets.
As at December 2018, the largest portion (49.75 per cent) of the assets was invested in government securities with fixed deposits taking the second largest share at 24.37 per cent.
Many money market fund managers invest primarily in short-term government securities due to relatively stable returns and low risk.
Only 9.44 per cent of the total funds was invested in Securities listed on Nairobi Securities Exchange excluding government while 7.06 per cent was invested in cash and demand deposits.