Kenya – CIC Asset Management Scheme Retains Market Leadership Position in Second Quarter of 2022

  • New data now shows that CIC Asset Management has retained its leading position in unit trusts in Kenya, with a 40.46 per cent market share
  • Assets under CIC’s management reached KSh 56.9 billion as of March 2022, which is a 1.14 per cent rise compared to KSh 56.2 billion as of December 2021
  • CIC Asset Management Managing Director Stanley Mutuku noted that the economy was on a growth trajectory, which is reflected in the performance

Kenya’s CIC Asset Management has retained its leading position in unit trusts in Kenya, with a 40.46 per cent market share.

Data by the Capital Markets Authority shows that the CIC unit trust scheme market share in the second quarter of 2022 was the largest unit trust scheme in the country.

Assets under CIC’s management reached KSh 56.9 billion as of March 2022, which is a 1.14 per cent rise compared to KSh 56.2 billion as of December 2021.

CIC Asset Management Managing Director Stanley Mutuku noted that the economy was on a growth trajectory, which is reflected in the performance.

“The positive results in the market performance can be attributed to the nature of the company in ascertaining our clients’ needs and coming up with solutions that fit their respective individual needs. Our research and development teams are up to par with the required standards and are coming up with unique products for the modern consumer,” said Mutuku.

In the half-year results of 2022, CIC Asset Management’s profit before tax increased from KSh 225 million in the same period last year to KSh 274 million, which was attributed to the growth of assets under management. There was a growth of 19% in assets under management from KSh 89 Billion last year to KSh 106.7 billion this year.

CIC Asset Management runs collective investment schemes and pension products offered in the Kenyan market.

In pension, which revolves around retirement planning, the company has Umbrella Retirement Fund designed for small and medium enterprises (SMEs) and larger organizations willing to set up segregated retirement benefits schemes. The other product is the income draw-down fund, which allows re-investment of retirement savings.

Under the collective investment schemes, the investment company has 6 products, with the Money Market Fund taking the lead. Owing to its nature of preserving investors’ capital while earning interest, the product continues to grow in popularity, where the business enjoys the leading market position.

Others are the CIC Balanced Fund, which is ideal for investors looking for a mixture of safety, income, and capital appreciation. The firm invests in the stocks of listed companies for growth and in interest-bearing investment options for income. The company’s Equity Fund invests in the Nairobi Securities Exchange, while the CIC Dollar Fund invests in dollar currency through fixed deposits and bonds.

Fixed Income Fund focuses on long-term fixed income instruments such as bonds while the CIC Wealth Fund invests in diversified fixed deposits and high-yielding interest-bearing investment options in the Kenyan market.

In a related story, CIC Insurance’s gross profit hit KSh 464 million in the first six months of 2022, compared to a pre-tax profit of KSh 337 million posted in a similar period in 2021. The performance represents a 38 per cent rise in the company’s gross profit.

The Exchange Africa reported that CIC’s performance was driven by strong growth in the gross written premium and improved performance on the underwriting results owing to the continued implementation of transformation initiatives.

CIC Insurance’s gross profit rise by 38% as premiums surge

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During the period, CIC’s gross written premium grew by 23 per cent to KSh 13.2 billion from KSh 10.7 billion, driven by growth in all its businesses in Kenya and the regional countries.

The business significantly improved the underwriting results by 64 per cent as the company remained focused on its core insurance business.

Meanwhile, investment income declined by 18 per cent to KSh 901 million from KSh 1.06 billion for the same period last year due to reduced valuations on the equity portfolio.

CIC also noted that fund management fees income grew by 29 per cent to KSh 541 million because of a 19 per cent increase in funds under management to over KSh 106.7 billion.

The company’s total assets increased by 10 per cent from KSh 41 Billion as of 30th June 2021 to KSh 45.8 billion as of 30th June 2022 as investments continued to grow.

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