The Capital Markets Authority (CMA) has approved six new assets and money market funds, expanding investment opportunities investors in Kenya. Capital Markets Authority chairman Ugas Sheikh-Mohamed at a past event. Picture of an investor checking an investment portfolio used for illustration.
The new approvals involve two high-risk investment funds and four collective investment schemes aimed at offering diversified asset classes and geographical exposure. New High-Yield Investment Funds The CMA authorised Faida Investment Bank Limited to establish the Oak Multi-Asset Special USD Fund under the Faida Umbrella Fund.
This USD-denominated fund will primarily target high-yield assets, including global sovereign bonds, corporate bonds, and derivatives. It is designed for medium to high-risk investors, the fund offers a T+2 settlement period after a six-month lock-in. Additionally, Dry Associates Limited (DAL) has been given approval to convert its Balanced Fund into the DAL High Yield Special Fund. This new fund will focus on high-yield returns through investments in Kenyan and East African government securities, as well as corporate fixed-income securities. New collective investment schemes
The CMA has also approved four new collective investment schemes from licensed asset management firms, as shown below:
1. Britam USD Money Market Fund
Britam Asset Managers Limited has been granted approval to introduce the Britam USD Money Market Fund. This fund will invest primarily in short-term money market instruments such as government securities and highly rated commercial papers.
2. Orient Dollar Money Market Fund
Orient Asset Managers Limited will offer the Orient Dollar Money Market Fund under the Orient Umbrella Fund. This fund will target low-risk investors and provide reasonable stability in capital alongside semi-annual income distribution.
3. CIC Global Special Fund
CIC Asset Management Limited has received approval for the CIC Global Special Fund, which will target investors seeking medium-to-high-risk returns through a balanced approach to capital growth. The fund will focus on actively managed interest rate and credit risk to generate regular income.
4. VCG Offshore Opportunities Special Fund
VCG Asset Management Limited has been granted permission to introduce the VCG Offshore Opportunities Special Fund, which will consist of eight specialised sub-funds targeting offshore equities, commodities, technology, and multi-asset investments. The fund is designed for high-net-worth and institutional investors looking to diversify their portfolios across global markets, with particular emphasis on key sectoral themes.
by Elijah Ntongai