Absa Asset Management Gets Greenlight to Register Unit Trust Funds

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The Capital Markets Authority (CMA) has granted Absa Asset Management Limited permission to register Unit Trust Funds. A statement from the CMA shows that the Unit Trust Funds will comprise of five funds, Absa Shilling Fund, Absa Dollar Fund, Absa Bond Fund, Absa Equity Fund and the Absa Balanced Fund.

“The Capital Markets Authority has granted consent to ABSA Asset Management Limited for the registration of Absa Unit Trust Funds,” reads a statement from the Regulator.

The consent is in line with section 30 of the Capital Markets Authority Act, which defines a collective investment scheme as an investment company, a unit trust, a mutual fund or any investment scheme incorporated within the laws of Kenya, and collects and pools funds from the public for investment.

Recently, the CMA stepped up surveillance on Unit trusts, requiring more disclosures such as where money managers invest funds, and how they arrive at investment decisions. The closer monitoring follows a list of bad decisions which sunk with investors cash, including investments in Nakumatt, Athi River Mining, Chase Bank and Imperial Bank.