OVERVIEW OF THE 2018 PERFORMANCE BY UNIT TRUST FUND MANAGERS:
The Unit Trust Fund Managers, in line with section 51A (2) of licensing regulations, released their 2018 results. The following are the highlights on the performance from FY’2017 to FY’2018;
- The Total Assets Under Management (“AUM”) held by Unit Trust Fund Managers grew moderately by 4.3% to Kshs 58.0 bn in 2018 from Kshs 55.6 bn recorded in 2017,
- Money Market Funds continue to be the most popular product with the AUM held by Money Market Funds having grown by 8.9% to Kshs 48.5 bn in 2018 from Kshs 44.5 bn recorded in 2017; this shows that Money Market Funds are growing faster than the overall market,
- CIC Asset Managers recorded the strongest growth in AUM of 36.3%, to Kshs 20.3 bn in 2018 from Kshs 14.9 bn in 2017,
- For the top ten fund managers by AUM, Sanlam Investments recorded the highest decline in AUM of 31.7% to Kshs 1.8 bn in 2018 from Kshs 2.6 bn in 2017,
- CIC Asset Managers remains the largest overall Unit Trust Fund Manager with a market share at 34.9% in 2018, up from 26.7% in 2017,
- Money Market Funds remain the largest Unit Trust Fund, with a market share of 84.3% in 2018, up from 80.7% in 2017,
- In 2018, the number of Fund Managers licensed by the Capital Markets Authority stood at twenty six (26). New entrants into the Fund Management business include Cytonn Asset Managers Limited, the regulated affiliate of Cytonn Investments Management Plc, licensed on 22nd March 2018. Cytonn Asset Managers Limited has launched its Unit Trust Funds including; Cytonn Money Market Fund, Cytonn Equity Fund and Cytonn Balanced Fund,
- The 2018 results do not cover Stanlib Kenya as they had not published their financials as of 31st March 2019 as required by the regulations.
Top Five (5) Money Market Funds by Returns
The yields for Money Market Funds are published every business day in the local dailies such as The Daily Nation, Business Daily and The Standard. Cytonn Money Market Fund tops this list with the most competitive yield, having offered an average effective annual yield of 11.5% p.a. in 2018. The top five Money Market Funds in terms of the average effective annual yield declared in 2018 are as below:
|
No. |
Money Market Fund |
2018 Average Effective Annual Yield p.a. |
|
1 |
Cytonn Money Market Fund |
11.5% |
|
2 |
Nabo Africa KES Money Market Fund |
10.2% |
|
3 |
CIC Money Market Fund |
10.1% |
|
4 |
Madisson Money Market Fund |
9.9% |
|
5 |
Zimele Money Market Fund |
9.9% |
Top Five (5) Unit Trust Fund Managers by Assets Under Management
As at the end of 2018, the total Unit Trust Funds AUM grew by 4.3% to close at Kshs 58.0 bn, up from Kshs 55.6 bn in 2017. The top five Fund Managers control 82.4% of the total Unit Trust Funds AUM.
(all values in Kshs millions unless stated otherwise)
|
No. |
Unit Trust Fund Manager |
FY'2017 |
FY'2018 |
FY'2018 Market Share |
|
1 |
CIC Asset Managers |
14,868.8 |
20,270.8 |
34.9% |
|
2 |
British American Asset |
9,595.2 |
8,841.6 |
15.2% |
|
3 |
Old Mutual |
7,527.2 |
6,578.8 |
11.3% |
|
4 |
ICEA Lion |
5,949.9 |
6,951.9 |
12.0% |
|
5 |
Commercial Bank of Africa |
4,174.7 |
5,189.7 |
8.9% |
|
|
TOTAL |
42,115.7 |
47,832.9 |
82.4% |
Top Five (5) Money Market Funds by Assets Under Management
The total AUM in Money Market Funds grew by 8.9% to Kshs 48.5 bn in 2018 from Kshs 44.5 bn in 2017. The top five Money Market Funds control AUM of Kshs 41.4 bn, which translates to 85.3% of the total AUM in Money Market Funds.
(all values in Kshs millions unless stated otherwise)
|
No. |
Money Market Fund (Kshs) |
FY'2017 |
FY'2018 |
FY'2018 Market Share |
|
1 |
CIC Money Market Fund |
14,292.9 |
19,756.7 |
40.7% |
|
2 |
ICEA Money Market Fund |
4,849.6 |
5,916.3 |
12.2% |
|
3 |
Britam Asset Money Market Fund |
5,590.0 |
5,871.1 |
12.1% |
|
4 |
CBA Money Market Fund |
4,086.1 |
4,946.9 |
10.2% |
|
5 |
Old Mutual Money Market Fund |
5,514.2 |
4,877.6 |
10.1% |
|
|
TOTAL |
34,332.8 |
41,368.5 |
85.3% |
Market Share of Different Unit Trust Products
The top three Unit Trust Products have a combined market share of 95.9% of the total AUM in Unit Trust Products, with Money Market Funds being the most popular product have the highest market share of 84.3%.
(all values in Kshs millions unless stated otherwise)
|
No |
Product |
FY'2018 |
FY'2018 Market Share |
|
1 |
Money Market Funds |
48,895.5 |
84.3% |
|
2 |
Equity Funds |
4,797.9 |
8.3% |
|
3 |
Balanced Funds |
1,947.8 |
3.3% |
|
|
Total |
55,641.2 |
95.9% |
Comparing Unit Trust Funds AUM Growth with Pension Assets Growth, Bank Deposits and Assets Growth
Unit Trust Funds assets recorded improved growth of 4.3% in 2018, compared to a negative growth of 1.5% in 2017, while growth for bank deposits and pension assets slowed down in 2018 to 11.3% and 9.8% from 12.6% and 18.3% recorded in 2017, respectively. Bank assets growth was 10.2% in 2018, compared to 10.1% in 2017.
|
Year |
Bank Deposits Growth |
Bank Assets Growth |
Pension Assets Growth |
Unit Trust Funds AUM Growth |
|
2017 |
12.6% |
10.1% |
18.3% |
-1.5% |
|
2018 |
11.3% |
10.2% |
13.1%** |
4.3% |
|
Average |
12.0% |
10.2% |
15.7% |
1.4% |
** 9 months annualized
Commenting on the results, Elizabeth Nkukuu, Chief Investments Officer of Cytonn Investments Management Plc, said, “The performance by Unit Trust Funds had stagnated since 2016 but this has now improved, following the repeal of the rate cap, in September 2018, which has seen bank deposits rates drop making Money Market Funds more attractive to investors. There is still more room for growth and it’s the work of Fund Managers to stimulate and deepen the capital markets, thus providing alternative funding for businesses consequently reducing the dominance by banks in the provision of funding.”
Appendix
Performance of All Unit Trust Fund Managers by Assets Under Management
CIC Asset Managers recorded the strongest growth in 2018, having grown by 36.3% to Kshs 20.3 bn from Kshs 14.9 bn in 2017. The average industry growth was however moderate at 4.3%, with the total AUM growing to Kshs 58.0 bn in 2018 from Kshs 55.6 in 2017.
Among the top ten Fund Managers, Sanlam Investments recorded the highest drop in AUM at 31.7% to Kshs 1.8 bn in 2018 from Kshs 2.6 bn in 2017.
(all values in Kshs millions unless stated otherwise)
|
# |
Fund Managers |
Total AUM 2017 |
Total AUM 2018 |
∆Kshs |
∆% |
|
1 |
CIC Asset Managers |
14,868.8 |
20,270.8 |
5,402.1 |
36.3% |
|
2 |
British American Asset |
9,595.2 |
8,841.6 |
(753.6) |
-7.9% |
|
3 |
ICEA Lion |
5,949.9 |
6,951.9 |
1,002.0 |
16.8% |
|
4 |
Old Mutual |
7,527.2 |
6,578.8 |
(948.4) |
-12.6% |
|
5 |
Commercial Bank of Africa |
4,174.7 |
5,189.7 |
1,015.0 |
24.3% |
|
6 |
African Alliance Kenya |
2,305.2 |
2,160.2 |
(145.0) |
-6.3% |
|
7 |
Sanlam Investments |
2,564.6 |
1,751.0 |
(813.6) |
-31.7% |
|
8 |
Madison Asset Managers |
731.8 |
1,225.4 |
493.6 |
67.5% |
|
9 |
Dry Associates |
539.3 |
1,014.5 |
475.1 |
88.1% |
|
10 |
Nabo Capital (Centum) |
808.8 |
880.8 |
72.0 |
8.9% |
|
11 |
Zimele Asset Managers |
742.7 |
874.6 |
131.9 |
17.8% |
|
12 |
Amana Capital |
1,372.8 |
787.0 |
(585.9) |
-42.7% |
|
13 |
Equity Investment Bank |
1,270.3 |
690.7 |
(579.6) |
-45.6% |
|
14 |
Genghis Capital |
569.4 |
468.5 |
(101.0) |
-17.7% |
|
15 |
Apollo Asset Managers |
162.8 |
276.0 |
113.2 |
69.5% |
|
16 |
Seriani Asset Managers** |
|
62.8 |
62.8 |
|
|
17 |
Stanlib Kenya |
2,437.0 |
|
|
|
|
|
Total |
55,620.5 |
58,024.3 |
|
4.3% |
** Now Cytonn Asset Managers Limited
Unit Trust Fund Managers Market Share
CIC Asset Managers remained the largest Fund Manager by market share at 34.9% in 2018. This was an 8.2% points increase from 26.7% in 2017.
|
# |
Fund Managers |
2017 Market Share % |
2018 Market Share % |
∆% |
|
1 |
CIC Asset Managers |
26.7% |
34.9% |
8.2% |
|
2 |
British American Asset |
17.3% |
15.2% |
-2.1% |
|
3 |
ICEA Lion |
10.7% |
12.0% |
1.3% |
|
4 |
Old Mutual |
13.5% |
11.3% |
-2.2% |
|
5 |
Commercial Bank of Africa |
7.5% |
8.9% |
1.4% |
|
6 |
African Alliance Kenya |
4.1% |
3.7% |
-0.4% |
|
7 |
Sanlam Investments |
4.6% |
3.0% |
-1.6% |
|
8 |
Madison Asset Managers |
1.3% |
2.1% |
0.8% |
|
9 |
Dry Associates |
1.0% |
1.7% |
0.7% |
|
10 |
Nabo Capital (Centum) |
1.5% |
1.5% |
0.0% |
|
11 |
Zimele Asset Managers |
1.3% |
1.5% |
0.2% |
|
12 |
Amana Capital |
2.5% |
1.4% |
-1.1% |
|
13 |
Equity Investment Bank |
2.3% |
1.2% |
-1.1% |
|
14 |
Genghis Capital |
1.0% |
0.8% |
-0.2% |
|
15 |
Apollo Asset Managers |
0.3% |
0.5% |
0.2% |
|
16 |
Seriani Asset Managers** |
0.0% |
0.1% |
0.1% |
|
17 |
Stanlib Kenya |
4.4% |
|
|
|
|
Total |
100.0% |
100.0% |
** Now Cytonn Asset Managers Limited
