(Nairobi) – The Capital Markets Authority (CMA) has approved six new funds from licensed asset management firms, expanding investment opportunities for sophisticated and high-net-worth investors. This development follows the strong performance of Collective Investment Schemes (CIS) in Kenya, with the combined assets of these schemes surpassing KSh 300 billion for the first time in the period ending September 2024.
Money Market Funds (MMFs) remain the dominant investment option, holding KSh 196.8 billion, which accounts for 62% of the total funds under management. The approval of these new funds marks an important step in diversifying investment offerings in the Kenyan market, particularly for investors seeking higher yields and international exposure.
Among the approved funds, Faida Investment Bank Limited will launch the Oak Multi-Asset Special USD Fund, which will focus on high-yield assets such as global bonds and derivatives. This fund aims to offer sophisticated investors an opportunity to diversify into international markets, targeting assets with higher returns than typical local investments.
Dry Associates Limited (DAL) has transitioned its Balanced Fund into the DAL High Yield Special Fund. This fund will now focus on high-yield government and corporate securities, particularly in Kenya and East Africa, providing investors with more targeted opportunities in the regional market. DAL’s move is expected to appeal to those looking for returns in both local and regional markets, especially those with higher risk tolerance.
Britam Asset Managers has received approval for the Britam USD Money Market Fund, which will focus on stable returns denominated in US dollars. This fund aims to cater to investors seeking the relative stability of USD-denominated assets, offering a safe investment option in global money markets. Similarly, Orient Asset Managers has launched the Orient Dollar Money Market Fund, which will provide semi-annual income distributions, further diversifying the range of funds available for investors with varying income preferences.
CIC Asset Management has also introduced the CIC Global Special Fund, targeting medium- to high-risk investors. This fund is expected to appeal to investors who are comfortable with risk and are looking for greater exposure to global markets. Finally, VCG Asset Management has launched the VCG Offshore Opportunities Special Fund, which will invest in sub-funds focused on global equities, commodities, and technology, providing exposure to some of the fastest-growing sectors in international markets.