Nairobi: CIC Insurance Group has introduced the CIC Global Balanced Special Fund, a USD-denominated balanced collective investment scheme, marking its debut in the global investment arena. The new product provides Kenyan investors with access to a portfolio that includes both domestic and offshore asset investments.
According to Kenya News Agency, the Fund is managed by CIC Asset Management (CICAM), a subsidiary of CIC Insurance Group. CICAM is a prominent asset manager in Kenya, currently overseeing assets totaling Sh 183 billion. The CIC Global Balanced Special Fund is designed to shield investors from significant market fluctuations by diversifying investments across various assets and focusing on returns through risk management strategies.
The launch of this Fund coincides with a report from the Capital Markets Authority (CMA), indicating that assets in collective investment schemes have surpassed the Sh 500 billion threshold, with a growing interest in foreign-currency and offshore funds. During the launch event in Nairobi, Patrick Nyaga, Group Managing Director and CEO of CIC Group, emphasized the Fund’s introduction at a time when there is heightened demand for diversified offshore investments.
Nyaga stated, “Through the product, we will give investors access to local fixed income investments such as the Treasury Bills and Bonds and global tools including ETFs, global equities, and mutual funds.”
CICAM has collaborated with the Trade Development Bank (TDB) for strategic sponsorship and is enhancing its offshore positioning through a partnership with Swiss private bank, Vontobel, which will provide offshore execution support for the Fund.
Humphrey Gathungu, Managing Director of CIC Asset Management Limited, highlighted the Company’s goal to democratize access to investment opportunities traditionally dominated by institutions and high-net-worth clients. “Historically, special funds demanded high minimum investment and complex paperwork, and we are changing this model by making the initial investment one of the lowest in the market,” Gathungu explained.
The Fund seeks to deliver consistent capital growth over the medium to long term by reinvesting all income to boost compounding returns. It maintains the flexibility to allocate assets across global markets and selected domestic fixed-income instruments whenever attractive opportunities emerge.