CMA Approves New Collective Investment Schemes from various Asset Management Firms
Nairobi, 14 November 2024 – The Capital Markets Authority has approved four new funds by licensed asset management firms. These funds will be offered to investors with diversified investments across different asset classes and geographical regions.
Britam Asset Managers Limited has been authorized to introduce the Britam USD Money Market Fund, under the Britam Unit Trust Scheme. The Fund is targeted at the investor seeking stable, low-risk returns denominated in USD. It will invest its assets primarily in short-term money market instruments, including Government securities and highly rated commercial papers, with the objective of preserving capital and realizing consistent income.
Also, Orient Asset Managers Limited has been approved to offer the Orient Dollar Money Market Fund under the Orient Umbrella Fund. It is designed to accommodate low entry levels and semi-annual income distribution for investors who seek reasonable stability in capital together with reasonable income.
The Authority has also approved the new CIC Global Special Fund offered by CIC Asset Management Limited, which forms part of the CIC Unit Trust Scheme. The Fund shall target investors falling within the medium- to high-risk category who seek a balanced approach as far as capital growth is concerned, with regular income actively managed through interest rate and credit risk.
Finally, permission was granted to VCG Asset Management Limited to introduce the VCG Offshore Opportunities Special Fund with eight specialized sub-funds that aim at offshore equities, commodities, technology, and multi-asset investments. These sub-funds are aimed at high net worth and institutional investors who are keen to diversify their investments across global markets with key sectoral themes.
These approvals highlight the commitment of CMA to the continued development and stability of the Kenyan financial market through assurance of access to a variety of investment products. The new funds among others would afford a wider exposure for investors to the global and regional markets towards the undertaking of the capital market in Kenya.
ENDS
BACKGROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair, and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services;
Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on amwangi@cma.or.ke
