CIC Group's USD Fund opens new investment frontiers for Kenyans

CIC Group MD & CEO, Patrick Nyaga.
CIC Insurance Group has stepped onto the global stage with the launch of the USD-denominated CIC Global Balanced Special Fund, offering offshore investment avenues more accessible to Kenyans.
In a market update on Wednesday, the financial advisory services firm said 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.
Designed for a wide range of investors, including individuals, Kenyans in the diaspora, retirement fund managers, trusts, family businesses, and endowments, the CIC Global Balanced Special Fund sets a minimum initial investment of $1000 (about KES130,000).
CIC Group stated that banks, Saccos, and NGOs can also invest in the new vehicle, which requires customers to make minimum top-ups of $100 (KES13,000) and maintain a minimum account balance of $1000.
Lender Cooperative Bank will act as the custodian of the Fund which is domiciled in Kenya and has obtained approvals from the Capital Markets Authority (CMA). The fund is structured to require investors to commit to a six-month lock-in period from the first deposit, during which no withdrawals are permitted.
Appetite for offshore funds
The Fund is managed under CIC Asset Management (CICAM), a subsidiary of the Group, and currently has KES183 billion in total Assets Under Management. It comes at a time when the CMA reports that collective investment scheme assets have crossed KES500 billion mark, with a growing appetite for foreign-currency and offshore funds.
CIC Group CEO Patrick Nyaga said: “We are launching this fund at a time when there is rising 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.”
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 head Humphrey Gathungu stated: “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, and we are changing this model 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.