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Kenya’s Largest Unit Trusts by AUM – December 2024 Report
What Are Unit Trust Funds (UTFs)?
Unit Trust Funds (UTFs) are collective investment schemes that pool money from multiple investors, which is then professionally managed and invested in various financial instruments such as stocks, bonds, money market instruments, or other authorized securities.
In Kenya, Unit Trust Funds are regulated by the Capital Markets Authority (CMA) and operate under the Capital Markets Collective Investment Schemes Regulations, 2001. A unit trust fund typically has:
✅ Fund Manager – Administers the fund and ensures investment objectives are met
✅ Trustee – Protects investors’ interests and oversees fund operations
✅ Custodian – A licensed institution (usually a bank) that securely holds the fund’s assets
Types of Unit Trust Funds in Kenya
There are several categories of UTFs, each catering to different investor profiles:
🔹 Money Market Funds (MMFs): Invest in short-term debt securities such as T-bills, bank deposits, and commercial papers, offering high liquidity and stable returns. Best suited for risk-averse investors.
🔹 Fixed Income Funds (FIFs): Invest in bonds and other fixed-income securities, providing steady returns with moderate risk exposure. Ideal for investors looking for capital preservation and predictable income.
🔹 Equity Funds: Invest primarily in stocks, offering high potential returns but also higher risk due to market fluctuations.
🔹 Balanced Funds: A mix of equities and fixed income, offering diversification and moderate risk exposure.
🔹 Specialty Funds: Includes real estate funds, infrastructure funds, and offshore investment funds, catering to niche investors.
Top 10 Unit Trusts in Kenya by AUM (December 2024)
The Capital Markets Authority (CMA) recently published the latest Assets Under Management (AUM) for Kenyan Unit Trusts as of December 2024. The AUM represents the total value of investor funds managed by each scheme.
Below are the top 10 largest Unit Trusts in Kenya ranked by AUM:
| Rank | Unit Trust Scheme | Assets Under Management (AUM) – Ksh |
|---|---|---|
| 1️⃣ | CIC Unit Trust Scheme | 82.5 Billion |
| 2️⃣ | Sanlam Unit Trust Scheme | 62.7 Billion |
| 3️⃣ | Mansa X Special Fund | 41.7 Billion |
| 4️⃣ | NCBA Unit Trust Scheme | 39.3 Billion |
| 5️⃣ | Britam Unit Trust Scheme | 29.3 Billion |
| 6️⃣ | ICEA Unit Trust Scheme | 19.3 Billion |
| 7️⃣ | ABSA Unit Trust Scheme | 14.9 Billion |
| 8️⃣ | Old Mutual Unit Trust Scheme | 14.1 Billion |
| 9️⃣ | Co-op (Unit) Trust Fund | 13.5 Billion |
| 🔟 | KCB Unit Trust Scheme | 9.3 Billion |
Key Insights & Observations
📌 AUM ≠ Investment Returns:
While these Unit Trusts have the highest Assets Under Management, this does not necessarily mean they offer the highest returns. Some smaller investment schemes outperform them in terms of returns, especially in Money Market and Fixed Income Funds.
📌 Larger AUM Funds Are More Established:
Most of the largest Unit Trusts have been in existence for many years, explaining why they have accumulated substantial investor funds over time. In contrast, newer, high-yielding funds such as Cytonn MMF, Lofty-Corban MMF, Etica MMF, Gulfcap MMF, and Ndovu MMF do not appear in the top 10 by AUM.
📌 Money Market & Fixed Income Funds vs. AUM:
Interestingly, the top-yielding MMFs and FIFs (according to our weekly rankings) are not among the largest funds by AUM. This suggests that investors prioritize fund reputation and stability over high returns when choosing where to invest their money.
📌 Investor Confidence & Fund Longevity:
Funds with a long history and strong brand recognition tend to attract more investor trust, leading to higher AUM. However, high AUM alone does not indicate better performance or security, making it important for investors to evaluate both AUM and past returns.
Should You Invest in a High AUM Fund?
✅ Advantages of High AUM Funds:
- Stability and longevity in the market
- Strong institutional backing and investor trust
- Lower risk of liquidity issues
❌ Potential Downsides:
- Returns may not be the highest compared to smaller, high-yielding funds
- Investment strategies may be conservative, limiting growth potential
Final Thoughts
Unit Trusts remain a great investment vehicle for both beginners and seasoned investors. However, investors should not rely on AUM alone when selecting a fund. Instead, they should:
✔️ Assess past returns and performance consistency
✔️ Review the fund manager’s track record
✔️ Consider their risk appetite and investment goals
✔️ Compare returns with alternative investment options (e.g., Money Market Funds, Fixed Income Funds, Bonds, etc.)
We will continue analyzing these trends and provide further insights into the best-performing investment funds in Kenya.
💬 What are your thoughts? Do you prioritize AUM when selecting a Unit Trust Fund? Share your views in the comments!
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🔗 Explore our latest reports on MMFs, Fixed Income Funds, and Market Updates here.