Cytonn Unit Trust Scheme Value Drops By Ksh182M In Three Months

Edwin Dande
Cytonn CEO Edwin Dande. [PHOTO/ COURTESY]

The Cytonn Unit Trust Scheme value has dropped by Ksh182 million in three months to September 30, 2021.

According to revelations by the Capital Markets Authority (CMA), the value of assets held by the Cytonn Unit Trust Scheme has fallen to Ksh772 million from Ksh960.2 million.

The drop, equivalent to 19.6 percent could be as a result of withdrawals by investors, following the saga that surrounded the Cytonn High Yield Solutions (CHYS) and the Cytonn Project Notes (CPN).

CHYS and CPN, which are private offers from Cytonn, were recently placed under a High Court-appointed administrator on a voluntary basis after a number of investors tried to liquidate the assets.

The two funds became illiquid in 2020, following the advent of the Covid-19 pandemic.

As a result of the negative publicity spread about the two products, other offers from Cytonn were also affected with massive withdrawals, associated with the decline in Cytonn Unit Trust Scheme value.

Other Trust schemes that recorded a decline include Amana Unit Trust Funds, whose value shrunk by40.4 percent to Ksh45.1 million from Ksh75.6 million at the end of June.

The total value of assets held in all 19 approved collective investment schemes in the quarter has stretched to Ksh117.8 billion from Ksh111.1 billion in June.

43 percent of the assets in the schemes are invested in government securities.

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