Investment Company, Cytonn, has launched an asset management arm, Cytonn Asset Managers Ltd (CAML), in a diversification move.
This follows its approval as fund manager by the Capital Markets Authority (CMA), approval as Fund Manager for pensions by Retirement Benefits Authority (RBA), and approval by Capital Markets Authority to operate as a licensed Real Estate Investment Trust (REIT) Manager.
“This should finally put an end to the question, ‘does Cytonn offer regulated products?’ The answer is yes, we have a regulated arm; CAML is regulated by the Capital Markets Authority and the Retirement Benefits Authority,” said Cytonn CEO Edwin Dande.
The company, which in the first instance targeted high-net worth individuals, will now be open to the ordinary Kenyan who also want high yielding returns.
“The coming in of Cytonn Asset Managers Limited into the regulatory space is a positive step. I hope that just as Cytonn has done for High Net-worth Investors, it will now also bring high yielding, above average returns to the common mwananchi, and bring the same level of innovation to the investors,” said Chief Administrative Secretary for Treasury Nelson Gaichuhie.
Cytonn now joins other institutions managing retirement benefits funds in Kenya, which are currently valued at 1.2 trillion shillings in assets. During the launch, Cytonn also re-branded its money market fund from the Seriani Money Market Fund to Cytonn Money Market Fund.
Cytonn says that the new venture will offer higher return on investment, unlike the traditional way of “just depositing” to earn interest which hits the ceiling at 7 percent.
Mr Dande said that their high yielding funds has been able to raise Ksh11 billion across 3,000 clients, an average of Ksh3.6 million per client, they will transition all this to regulated products.
The firm predicts that it requires Ksh82 billion to complete its real estate projects, and has been able to source for almost Ksh22 billion from investors.
Of the amount acquired, Ksh5 billion has been acquired from Finish firm Taaleri which contributed Ksh5 billion, Ksh5 billion from joint venture and over Ksh11 billion from individual investors.