Assets under management decreased the most for unit trust schemes administered by Co-op, African Alliance Kenya, and Cytonn in the three months that ended in September 2022 compared to the prior quarter.
According to data from the Capital Markets Authority, Co-fund op’s decreased by Sh383.8 million or 10.3 percent to Sh3.3 billion (CMA).
The next to suffer was African Alliance, which lost Sh266.8 million (15.3%) to reach Sh1.4 billion.
Cytonn finished third, losing Sh258.1 million, or 33.4 percent, in absolute terms, to conclude at Sh513.2 million.
Cytonn experienced the greatest decline among the collective investment plans in terms of percentages.
Despite continuously producing the highest returns of over 10%, the fund manager’s assets have decreased from highs of 960.2 million in the quarter that ended in March 2021 due to a string of customer withdrawals, including the most recent decline.
Other companies run by Cytonn Investments Management Plc have been hit by lawsuits and losses, which might harm the reputation of its regulated money market fund.
Despite opposition from some of their creditors, Cytonn High Yield Solutions LLP and Cytonn Real Estate Project Notes LLP, which raised debt owing to investors totaling Sh15.2 billion, entered administration.
A recent court decision put an end to the administration and protected the investment vehicles’ real estate holdings until their creditors were paid back.
Old Mutual experienced a loss of Sh199.5 million (2.8%) to Sh6.6 billion.
The companies that increased their assets over the three months that ended in September were headed by NCBA, CIC, and Sanlam.
The assets under NCBA’s management increased by Sh3.5 billion (17.5%) to Sh20.1 billion.
Those of CIC climbed by Sh3.1 billion, or 5.5 percent, to close at Sh60.2 billion, solidifying the fund manager’s hegemony over the market for collective investment schemes.
Part of the CMA report states that “CIC Unit Trust Scheme retained the lead in handling the highest assets under management of Sh60.27 billion, which represents 38.87% of the total.”
Sanlam came in third with an increase of Sh1.8 billion, closing with a portfolio of Sh14.5 billion.
The schemes’ combined assets increased by Sh9.3 billion, or 6.3 percent, to reach Sh155 billion.
As the funds made adjustments to their portfolios, including purchasing more listed shares and reducing their holdings of government debt securities, fixed deposits made up the majority of their allocation, amounting to Sh63.3 billion.
