GenAfrica gets nod to run unit-trust scheme

Asset manager GenAfrica has received approval from the Capital Markets Authority (CMA) to operate a unit trust business.

According to the fund management company, the move to start a unit trust scheme aligns to changing trends among its clientele base which currently desires a diversified product range.

“This is a goal-based product where we are working hand in hand with individuals in helping them meet their goals end to end. We are just not telling you to save money, we are asking you to bring your goals to us, as you allow us to walk that journey with us,” said GenAfrica Managing Director Patrick Kariuki.

Traditionally, GenAfrica has focused on institutional clients including the management of pension funds and presently has a portfolio valued at over Ksh.351 billion ($3 billion) with over 100 big-ticket clients.

The move to launch a unit trust business marks the fund manager’s switch which will now see it also focus on retail investors.

GenAfrica has not been alone in making the switch with other financial institutions including banks also unveiling/planning to unveil unit trust schemes.

Among the firms to have launched the unit-trust business in recent months include the Standard Chartered Bank and Nabo Capital while Absa Bank Kenya is set to shortly unveil its own version of a unit-trust scheme.

A unit-trusts refers to investments from funds pooled from investors and which pay out profits directly to individual unit holders.

According to data from the Capital Markets Authority (CMA), the collective investment schemes had Ksh.134.7 billion in assets under management (AUM) last year having grown by nearly seven per cent over the last quarter of 2021 to December.

CIC Unit Trust Scheme remains the largest collective investment vehicle with a market share of 41.8 per cent and assets valued at Ksh.56.3 billion.

As of December 2021, the CMA had licensed 19 collective investment schemes.