Kenya: CMA greenlights Arvocap Unit Trust Scheme registration

The registration of Arvocap Unit Trust Scheme has been officially approved by the Capital Markets Authority (CMA) in accordance with the Capital Markets Act and the Collective Investment Schemes Regulations of 2001.

Comprising a diversified portfolio, the collective investment scheme features 10 distinct sub-funds tailored to meet various investment preferences and objectives. These sub-funds include the Money Market Fund, Ngao Fixed Income Distribution Fund, Almasi Fixed Income Accumulation Fund, Eurofix Fixed Income Special Fund (USD), Thamani Equity Fund, Africa Equity Special Fund, Global Equity Special Fund, Multi-Asset Strategy Special Fund (USD), Global Sharia Equity Special Fund (USD), and Mabruk Sharia Special Fund (KES).

“Collective investment schemes are significant vehicles through which retail investors can easily participate in the capital markets, noting their ability to facilitate growth of customer base and democratization of wealth”, noted CMA CEO Wyckliffe Shamiah.

The Capital Markets Authority (CMA) foresees a notable uptick in the value of assets under management, projecting a nine percent growth in 2025 compared to the three percent growth observed in 2022. This optimistic outlook is attributed to the compelling value proposition offered by the investment vehicles within the market.

Shamiah highlighted that the Authority has granted licenses to 22 new fund managers since 2020, indicating a significant level of interest and engagement from market participants. This influx of new players underscores the growing dynamism within the industry.

The Authority also approved registration of additional sub-funds within existing unit trust schemes including Old Mutual Special Fixed Income Fund, NCBA Global Equity Special Fund and Global Fixed Income Special Fund, KCB Wealth Fund (Special Fund), Jubilee Money Market Fund (USD) and Jubilee Enhanced Fixed-Income Special Fund.

The approvals will remain in place perpetually unless revoked at the request of either the firm or by the Authority. The approval brings the number of registered collective investment schemes (CIS) to 37.