Arvocap has been cleared to operate as a unit trust scheme by the Capital Markets Authority (CMA) after meeting the requirements of the Capital Markets Act and regulations.
The approval brings the total number of unit trust schemes in the country to 37.
The collective investment scheme comprises 10 sub-funds including Money Market Fund, Ngao Fixed Income Distribution Fund, Almasi Fixed Income Accumulation Fund and Eurofix Fixed Income Special Fund (USD).
Others include Thamani Equity Fund, Africa Equity Special Fund, Global Equity Special Fund, Multi-Asset Strategy Special Fund (USD), Global Sharia Equity Special Fund (USD) and Mabruk Sharia Special Fund (KES).
A unit trust is an unincorporated mutual fund structure that holds assets and provides profits to individual unit owners instead of reinvesting into the fund.
It is established under a trust deed and the investor is the beneficiary.
The fund manager may invest in bonds or shares on the stock market, and the fund is split into units, which investors purchase.
Unit trusts further provide access to securities, mortgages and cash equivalents.
According to CMA CEO Wyckliffe Shamiah, collective investment schemes are significant vehicles through which retail investors can easily participate in the capital markets.
He noted their ability to facilitate growth of customer base and democratization of wealth.
"With these developments, we project that the value of assets under management will grow by nine per cent in 2025, up from the three per cent growth recorded in 2022, given the value proposition of the investment vehicles," Shamiah said.
The Authority has licensed 22 new fund managers since 2020, demonstrating interest from the market.
It also approved registration of additional sub-funds within existing unit trust schemes, including Old Mutual Special Fixed Income Fund, NCBA Global Equity Special Fund and Global Fixed Income Special Fund.
KCB Wealth Fund (Special Fund), Jubilee Money Market Fund (USD) and Jubilee Enhanced Fixed-Income Special Fund were also approved.
CMA says the approvals will remain in place perpetually unless revoked at the request of either the firm or by the Authority.
