Cytonn Money Market Fund is the fastest-growing unit trust scheme, the Capital Markets Authority (CMA) has indicated in its quarterly statistical bulletin.
The CMA bulletin shows that Cytonn Money Market Fund’s assets under management (AUM) increased by 67.44 percent, to hit Ksh720 million in Q4 of 2019 from Ksh430 million in Q3 2019. The industry average stood at 6.58 percent, according to CMA data.
Zimele Unit Trust Scheme was the second with a growth of 50.0 percent of assets under management, while Sanlam Unit Trust Scheme was third with a growth of 37.0 percent.
As at September 30, 2019, the Authority had 24 approved collective investment schemes. However, only 19 CIS are currently active while five are inactive.
In the review period, the total asset under management by the CIS amounted to Ksh76.10 billion, being a 6.58 percent increase from Ksh71.40 billion reported in the previous period (Q3 2019).
CIC Unit Trust Scheme managed the highest AUM of Ksh29.72 billion which represents 39.05 percent of the total AUM. The least portion of the total AUM stood at Ksh5.26 million, managed by Coop Trust which started operation in Q2, 2019
In the quarter ended December 2019, 52.10 percent of the total assets under management was invested in government securities. The government securities include; treasury bond, treasury bills and infrastructure bonds. The least amount of the AUM at 0.452 percent was invested in immovable property.
During Q1 of 2020, the Nairobi Securities Exchange (NSE) recorded a net foreign portfolio outflow of Ksh11.183 billion compared to an inflow of Ksh601 million in Q1 of 2019.This drastic change can be attributed to the panic trading brought about by the COVID-19.
Equity turnover at the bourse stood at Ksh43.70 billion, compared to Ksh45.01 billion registered in Q4 of 2019, even as volume of shares traded rose by 5.45 percent to 1.36 billion; while end of quarter market capitalization recorded a 7.94 percent decrease to Ksh2.02 trillion.
In the primary debt market, a quarterly analysis indicates that in Q1 of 2020, six Treasury bonds were issued, with the Government seeking to raise Ksh150 billion; receiving subscriptions worth
Ksh147.61 billion and accepting Ksh114.53 billion, reflecting a 77.56 percent acceptance rate.
In the secondary market, bond turnover increased by 48.39 percent with Ksh157.98 billion worth of bonds traded compared to Ksh106.46 billion traded in Q4 of2019, a pointer towards a shift by investors to safer assets.
The derivatives market, likewise, performed relatively well with 302 contracts traded, reflecting a 47.32 percent increase over the 205 contracts traded in Q4 of 2019, with KCB Group Futures the most liquid with 138 contracts, followed by Safaricom with 47 contracts. Other contracts traded included Equity Bank, Absa Bank, British American Tobacco and the NSE 25-Share index Futures.