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3 March, 2024

Unit Trust Funds (UTFs) are a type of Collective Investment Scheme that pool funds from various investors to collectively invest in a diversified portfolio of assets, managed by a Fund Manager, with the aim of generating returns for the investors. These funds are overseen by expert fund managers who allocate the collected capital into a diverse range of securities like equities, bonds, or other approved financial securities. The goal is to yield returns that align with the fund’s specific objectives. Following the release of the Capital Markets Authority (CMA) Quarterly CIS Report-Q4'2023, we examine the performance of Unit Trust Funds for the period ended 31st December 2023. These funds have seen consistent growth in total Assets Under Management (AUM) and are one of the preferred investment choices in Kenya. Additionally, we will delve into the performance of Money Market Funds, which are a subset of Unit Trust Funds.

In our previous focus on Unit Trust Funds, we looked at the Unit Trust Funds Performance – Q3'2023 by Fund Managers, where we highlighted that their AUM stood at Kshs 206.7 bn, a 17.4% growth from Kshs 176.0 bn recorded in Q2’2023. In this topical, we focus on the Q4’2023 performance of Unit Trust Funds where we shall analyze the following:

  1. Performance of the Unit Trust Funds Industry,
  2. Performance of Money Market Funds,
  3. Comparing Unit Trust Funds AUM Growth with other Markets, and,
  4. Recommendations.

Disclaimer: The views expressed in this publication are those of the writers where particulars are not warranted. This publication, which is in compliance with Section 2 of the Capital Markets Authority Act Cap 485A, is meant for general information only and is not a warranty, representation, advice or solicitation of any nature. Readers are advised in all circumstances to seek the advice of a registered investment advisor.