NAIROBI, Kenya, May 14 – Cytonn Asset Managers Limited has entered into a conditional agreement to acquire all the issued shares of local fund management company Seriani Asset Managers.
Cytonn’s Principal Officer Maurice Oduor says the acquisition is meant to accelerate Cytonn’s entry into the regulated investments products market where Seriani already has three registered Collective Investments Schemes.
Its offering includes a Money Market Fund, a Balanced Fund and an Equity Fund.
“Our aim is to deliver to our clients above market average superior risk-adjusted returns, through allocation to alternative markets, which has historically shown the capacity to deliver attractive investment returns,” Oduor says.
The acquisition is however subject to various conditions including regulatory approvals from the Competition Authority and the Capital Markets Authority of Kenya.
Data by the Capital Markets Authority reveals that by March 2017, money market funds were the largest asset category in the country, accounting for 77.61 per cent of the total assets under management.
Equity funds were the second most common category with a share of 11.84 per cent at Sh6.6 billion, Balanced Funds 6.94 per cent Sh3.87 billion, while Fixed Income/Bond Fund accounted for 2.65 per cent at Sh1.5 billion.