CMA approves two new unit trust umbrella schemes

The Capital Markets Authority (CMA) has approved two new umbrella unit trust schemes and several additional investment sub-funds under existing schemes in a move aimed at expanding investment choices for Kenyan investors and deepening the country's capital markets.

The approvals announced on Monday introduce new products across money market, fixed income and multi-asset categories, including offerings in Kenya Shillings, US Dollars, Euros and Sterling denominations.

According to the regulator, the approvals form part of broader efforts to widen the range of regulated savings and investment products available in the market.

The authority said the move is part of its "ongoing efforts to deepen Kenya's capital markets, enhance product innovation and expand the range of regulated savings and investment options available to Kenyan investors, from local shilling money market products to multi-currency and multi-asset special funds."

Among the newly approved products is the establishment of the Cinemark Unit Trust Fund, promoted by Cinemark Investment Bank Limited. The umbrella scheme has been registered with seven sub-funds covering a range of investment options including money market products, fixed income instruments and multi-asset funds in both Kenya Shillings and US Dollars.

The Authority also approved the Karsis Unit Trust Scheme promoted by Karsis Asset Managers Limited.

According to CMA, the Karsis scheme has been registered with twelve sub-funds "spanning money market, fixed income, multi-asset special fund and private-debt special fund strategies."

The regulator said the products will be offered across multiple currencies including the Kenya Shilling, US Dollar, Euro and Sterling, giving investors wider choices under one investment structure.

In addition to the new umbrella schemes, CMA approved the registration of several new sub-funds under existing investment structures.

Absa Asset Management received approval to register two additional products under the existing Absa Unit Trust Funds — the Absa Global Multi-Asset Special Fund in US Dollars and Kenya Shillings.

Dry Associates Investment Bank Limited was also approved to establish Euro and Sterling fixed income products under its existing trust structure.

Madison Investment Managers Limited received approval for a USD Fixed Income Special Fund, while Tradiam Investments Services Limited secured approval for two additional fixed income funds in Kenya Shillings and US Dollars.

CMA said all approvals remain subject to continued compliance with applicable regulations and guidelines.

The authority added that the new registrations "will contribute to increased market depth, improved product diversity, enhanced investor choice, and strengthened confidence in Kenya's capital markets."

It also advised potential investors to review scheme information documents carefully, consider their risk appetite and investment goals, and transact only with licensed and approved capital market intermediaries.