CMA Approves Two New Funds to Expand Investment Opportunities for Sophisticated Investors

Nairobi, 14 November 2024 – The Capital Markets Authority (CMA) is pleased to announce the approval of two significant funds, enhancing investment opportunities for sophisticated investors.

Faida Investment Bank Limited has received approval to establish the Oak Multi-Asset Special USD Fund under the Faida Umbrella Fund. This USD-denominated fund targets high-yield assets such as global sovereign bonds, corporate bonds, and derivatives, offering medium to high-risk investment options and a T+2 settlement period after a six-month lock-in.

Additionally, Dry Associates Limited (DAL) has converted its Balanced Fund into the DAL High Yield Special Fund, now focused on high-yield returns through Kenyan and East African government securities and corporate fixed-income investments. Targeting moderate to aggressive investors, the fund provides structured asset allocation across short- and long-term fixed-income securities.

These approvals reflect CMA’s commitment to fostering innovative products that meet evolving investor needs while ensuring compliance and transparency in the capital markets.

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