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CMA grants diaspora firm fund manager licence

The authority said the fund manager will offer financial products in asset management and unit trusts.

In Summary

•The entity will target Kenyan and other African clients living abroad as well as adopting an ambitious pan-African investment strategy for diversification and return enhancement.

•African Diaspora Asset Managers Limited CEO Runyah Lewa said his firm is interested in collective investment scheme that will initially comprise of five funds, subject to the CMA’s consent and subsequent registration. 

Acting Capital Markets Authority CEO Wyckliffe Shamiah.
Acting Capital Markets Authority CEO Wyckliffe Shamiah.
Image: COURTESY

African Diaspora Asset Managers Limited has been granted a fund manager’s license by the Capital Markets Authority (CMA).

The entity will target Kenyan and other African clients living abroad as well as adopting an ambitious pan-African investment strategy for diversification and return enhancement.

In a statement on Friday, the authority said the fund manager will offer financial products in asset management, unit trusts, financial investment management, discretionary portfolio management among other services.

 

‘The asset management sector is an important component of capital markets. Some products offered by fund managers, for instance collective investment schemes, are important because they provide an opportunity for small investors to have access to professionally managed, diversified portfolios of assets," CMA Acting CEO Wyckliffe Shamiah said.

African Diaspora Asset Managers Limited CEO Runyah Lewa on Friday said his firm is interested in collective investment scheme that will initially comprise of five funds, subject to the CMA’s consent and subsequent registration.

"The proposed schemes are:  ADAM Money Market Fund, ADAM Fixed Income Fund, ADAM Equities Fund, ADAM Property Fund and ADAM Business Growth Fund. The latter will be a Private Equity Fund specifically seeking to provide debt and equity capital for SMEs in Kenya and Africa," he said.

The approval brings the total number of licensed fund managers to 25.

In April, the authority cautioned investors against investing through unlicensed  and unapproved entities, in line with its investor protection mandate.

“Investors should only invest through licensed and approved entities  to enable them get protection offered by the Authority through the capital markets legal and regulatory framework,” Shamiah said.

This followed a warning that Kenyans are being lured to trade currencies by unlicensed firms following the sharp movements of the shilling.