Absa Asset Management Limited has been granted a fund manager’s license by the Capital Markets Authority (CMA).
The Unit Trust Funds will comprise of five funds, Absa Shilling Fund, Absa Dollar Fund, Absa Bond Fund, Absa Equity Fund, and the Absa Balanced Fund.
“The Capital Markets Authority has granted consent to ABSA Asset Management Limited for the registration of Absa Unit Trust Funds,” reads a statement from the Regulator.
In October, CMA published guidelines to Collective Investments Schemes, (CIS), on the valuation, performance measurement, and reporting by Fund Managers aimed at ensuring the standardization of the sector and consistency of the information presented across the sector.
Collective Investment Schemes (CIS) are pools of funds that are managed on behalf of investors by fund managers.
CISs are governed by the Capital Markets Authority (CMA) and are regulated under the Capital Markets Collective Investments Schemes Regulations, 2001.
According to the regulations, to ensure the proper running of a CIS, it should have a Fund Manager, a Trustee; as well as a Custodian.
The Fund Manager administers, manages, and ensures that the funds from their investors are invested in accordance with the fund investment objective.
A custodian is a company, usually a bank, approved by the Authority to hold in safe custody the funds/ assets of a collective investment scheme.
Trustees, on the other hand, ensure that the investors’ interests are protected at all times.
RELATED
1 Comment
Pingback: Absa Bank Kenya Profit Jumps 328% to KSh8.2 Bn