Cytonn Asset Managers Granted Fund Management License by CMA

Cytonn Asset Managers Limited, the fund management affiliate of Cytonn Investments, has been granted approval by the Capital Markets Authority of Kenya (CMA) to operate as a Fund Manager through the granting of a fund management license.

Including the license which has been granted to Cytonn Asset, the total number of licensed fund managers is 27, with indicative combined assets under management of 1.13 trillion shillings.

Speaking of being granted the license, Edwin H. Dande, Managing Partner and CEO of Cytonn Investments, expressed his excitement on the company joining the list of fund managers in Kenya.

“We shall do everything we can to contribute to the important work of building and deepening our capital markets. Our capital markets are core to funding businesses, which in turn create jobs and uplift the standards of living,” said Edwin Dande.

The CEO noted that the move will enable the company focus on six core areas including:

1. Working with the regulator to make sure that the company brings all activities of the holding company that could potentially be regulated into the ambit of regulation; total compliance is our first priority,
2. Working with the management of Cytonn Asset to bring innovative and high returning products to regulated markets in the pension and unit trust businesses.
3. Bringing a higher level of governance and transparency in the market.
4. Collaborating with industry players and the regulator to expand product offerings.
5. Working with the aim of deepening funding to businesses from the capital markets sources in order to reduce over-reliance on bank funding.
6. Playing a leading role in developing real estate backed securities focused on increasing housing and mortgages.

Cytonn Asset Managers CEO Maurice Oduor said that they will be focusing on delivering the most attractive risk-adjusted returns to their clients, with superior client service.

“The collective investment schemes in Kenya have historically had a low allocation towards the alternative investment space, with little to no innovation in the product development cycle. Starting with comprehensive research across all asset classes, allocation towards alternative investments, combined with superior portfolio management and trading capabilities will allow us to outperform the market” added Maurice Oduor.

A fund manager is a manager of a collective investment scheme, registered venture capital company, or an investment advisor who manages a portfolio of securities in excess of an amount prescribed by the Authority from time to time.