The Capital Markets Authority has released the latest report on the leading Money Market Funds (MMFs) by total assets under management (AUM) in Kenya.
An MMF is a unit trust fund managed by a professional fund manager, providing investors with a safe place to keep their cash while earning a return. Compared to regular bank accounts, MMFs offer higher returns than bank deposits.
While releasing the Collective Investment Schemes (CIS) Quarterly Report, CMA revealed that the CIC Money Market Fund was the biggest MMF, recording the highest figure of total assets under management (AUM) at Ksh81.8 billion. This represented a 25.6 per cent market share.
Second on the list was Sanlam Money Market Fund at Ksh72.2 billion, representing 22.6 per cent market share. It was followed by the ICEA Lion Money Market Fund at Ksh20.1 billion, having 6.3 per cent market share.
Fourth was the ABSA Shilling Money Market Fund at Ksh19.2 billion, with six per cent of the market share. Rounding off the top five was the Co-op Money Market Fund at Ksh16.3 billion, having 5.1 per cent of the market share.
In sixth place is the Old Mutual Money Market Fund at Ksh14.7 billion, representing 4.6 per cent of the market share. It was closely followed by the KCB Money Market Fund KES at Ksh12.7 billion, with a four per cent share.
The Britam Money Market Fund came in eighth with Ksh10.7 billion and 3.4 per cent of the market share. In ninth place was the Etica Money Market Fund, holding Ksh9.1 billion at a 2.9 per cent market share.
The top ten was rounded off by the Jubilee Money Market Fund KES at Ksh7.5 billion, with 2.4 per cent of the market share.
As per the CMA, Money Market Funds’ AUM dominated the CIS market by 64 per cent, with the Authority noting 49 MMFs in the country. Aside from MMFs, other forms of AUM held in various unit trusts included fixed income funds, equity funds, balanced funds, and special funds.
It is important to note that big MMFs are not necessarily the best-performing ones. To reveal performance, MMFs are judged upon through their yield value, which is normally denoted as a percentage.
The smallest MMF, as per CMA data, is the CPF USD Money Market Fund, holding Ksh2.5 million. Other MMFs on the lower end of the spectrum included the XENO Kenya Money Market Fund, GenCap Hela Money Market Fund, Amana Shilling Fund, Enwealth Dollar Money Market Fund, Cytonn Money Market Fund USD, and Taifa Money Market Fund.
Notable MMFs such as the Ziidi Money Market Fund hold Ksh7.7 billion in eleventh place, and the Genghis Money Market Fund, which holds Ksh612.9 million, is in 28th position. Others are the Lofty-Corban KES Money Market Fund with Ksh3.2 billion, the Stanbic Money Market Fund holding Ksh2.6 billion, and the Apollo Money Market Fund with Ksh2.3 billion.
CMA stated that out of the total AUM, 46 per cent(Ksh229.7 billion) was invested in government securities. The government securities included treasury bonds and bills, infrastructure bonds and Eurobonds. The least amount of the AUM at 0.2% (Kshs. 1.3 billion) was invested in offshore Unlisted investments.
Other forms of AUM included fixed deposits, cash and demand deposits, offshore listed investments, unlisted securities, listed securities, alternative investments, and other collective investment schemes.
