(Nairobi) – The combined assets of Collective Investment Schemes (CIS) in Kenya have crossed the KSh 300 billion mark for the first time, reaching KSh 316.4 billion for the period ending September 2024. This represents a growth of 25.4% from KSh 254.06 billion recorded in June 2024, according to the Capital Markets Authority (CMA).
Money Market Funds (MMFs) remain the largest segment within CIS, holding KSh 196.8 billion, or 62% of the total funds under management, though their share has slightly decreased from 67.4% in June. Other types of funds, including Fixed Income Funds, Equity Funds, and Balanced Funds, made up the remaining 32.6%. The breakdown of these funds is as follows: Fixed Income Funds held KSh 53.5 billion, Equity Funds had KSh 2.3 billion, Balanced Funds amounted to KSh 1.3 billion, and Other Funds had KSh 62.4 billion.
The CIC Unit Trust Scheme maintained its position as the largest fund by assets, with KSh 70.3 billion in assets, a 5.3% increase from KSh 66.8 billion in the second quarter of 2024. It holds 22.3% of the overall market share. Following CIC, Sanlam Unit Trust is the second-largest scheme, with assets growing by 25.4% to KSh 46.8 billion, maintaining a 14.8% market share.
Jubilee Unit Trust saw the highest growth in the period under review, increasing its assets by 90.7% to KSh 5.1 billion, up from KSh 2.7 billion in June 2024. On the other hand, MyXeno Unit Trust experienced the largest decline in assets, falling from KSh 16.1 billion in March 2024 to KSh 13.0 billion in September 2024. Other funds such as NCBA Unit Trust, British American Unit Trust, and Zimele Unit Trust also saw mild declines in assets under management by 0.3%, 2.6%, and 6.5%, respectively.
The third quarter of 2024 saw the entry of four new Unit Trust Schemes, bringing the total number of active funds to 35 out of the 54 approved collective investment schemes. Notable new entrants include the Stanbic Unit Trust Scheme, Arvocap Unit Trust, and Taifa Unit Trust, with assets under management of KSh 338.2 million, KSh 170.3 million, and KSh 11.8 million, respectively. Additionally, Mansa x by Standard Investment Bank converted its funds into Mansa x special CIS funds.
During the period, the largest proportion of assets under management was invested in government securities, accounting for 41.4% of the total. Fixed deposits made up 31.1%, while the remainder was spread across cash and demand deposits (14.7%), listed securities (1.9%), unlisted securities (3.1%), immovable property (0.9%), other CIS (0.6%), and offshore investments (6.2%). Offshore investments saw the most significant increase, rising by 4282% to KSh 19.6 billion, largely driven by Mansa x special funds, which allocated KSh 19 billion to offshore investments.
A Collective Investment Scheme (CIS) pools funds from various investors and invests them in a wide range of assets, with the portfolio managed by a professional fund manager. These schemes have become an increasingly popular investment option, offering individuals a chance to diversify their portfolios and access professional management of their investments.