CIC Group targets investors with new offshore investment plan

According to management, the CIC Global Balanced Special Fund is designed to protect investors from major market fluctuations by spreading investments across a diverse mix of assets.
It also aims to generate returns through careful risk management.

CIC Insurance Group has unveiled the CIC Global Balanced Special Fund, a USD-denominated balanced collective investment scheme, marking its entry into the global investment scene.

The product gives Kenyan investors access to a diverse portfolio of both domestic and offshore asset investments.

The Fund is managed under CIC Asset Management (CICAM), a subsidiary of the Group, an asset manager in Kenya currently with a total Assets Under Management of Sh183 billion.

According to management, the CIC Global Balanced Special Fund is designed to protect investors from major market fluctuations by spreading investments across a diverse mix of assets, aiming for returns through risk management.

It comes at a time when the Capital Markets Authority (CMA) reports that collective investment scheme assets have crossed the Sh500 billion mark, with a growing appetite for foreign-currency and offshore funds.

Speaking during the launch, Group Managing Director and CEO Mr Patrick Nyaga noted a rise in demand for diversified offshore investments.

“Through the product, we will give investors access to local fixed income investments like Treasury bills and bonds and global tools like ETFs, global equities and mutual funds,” he said.

CICAM has partnered with the Trade Development Bank (TDB) for strategic sponsorship and is strengthening offshore positioning, through an operational partnership with Swiss private bank Vontobel that is also tasked with offshore execution support for the Fund.

CIC Asset Management Limited managing director Humphrey Gathungu said: “Our mission through this fund is to democratise access to investment opportunities in a market segment that has long been the preserve of institutions and high-net-worth clients.”

Historically, special funds demanded high minimum investment and complex paperwork, a model he said they are changing by making the initial investment one of the lowest in the market.

The Fund aims to provide consistent capital growth in the medium-to-long term by reinvesting all income to enhance compounding returns, while maintaining the tactical discretion to deploy assets across global markets and chosen domestic fixed-income instruments when attractive opportunities arise.

Cooperative Bank will act as the custodian of the Fund which is domiciled in Kenya and has obtained approvals from CMA.

Offshore investment refers to putting your money into financial assets outside your home country — for example, investing in foreign stocks, mutual funds, real estate, or bank accounts.

People and institutions engage in offshore investment for several reasons. It allows them to diversify risk by avoiding overreliance on one country’s economy. Investing abroad can also provide access to better returns or unique opportunities not available locally.

Additionally, it helps protect wealth from local economic or political instability. In some cases, investors may also benefit from favorable tax structures or regulatory environments offered in other countries, provided it is done legally.