CIC Group’s new USD-based fund bets big on offshore markets

• CIC Global Balanced Special Fund is tailored to suit investors, who plan to hold their investment for a recommended medium to long term period.
• It is also structured to appeal to investors seeking capital growth over the recommended holding period.
• CIC Global Balanced Special Fund, which has capped the minimum investment at $1000.

CIC Group, a regional insurer in East Africa, has unveiled a new offering, CIC Global Balanced Special Fund, marking its entry into the global investment scene with a USD-denominated balanced collective investment scheme.

CIC Global Balanced Special Fund, which has capped the minimum investment at $1000, makes offshore investment more accessible for Kenyans, opening avenues for investors seeking better leverage in overseas markets. The product gives Kenyan investors access to a diverse portfolio of both domestic and offshore asset investments.

The fund has a lock-in period of six months from the initial deposit, while all deposits made within the six months locked, too. After the initial six months, one can withdraw their investment.

CIC Global Balanced Special Fund is tailored to suit investors, who plan to hold their investment for a recommended medium to long term period. It is also structured to appeal to investors seeking capital growth over the recommended holding period.

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CIC Global Balanced Special Fund targets high-net-worth individuals

In particular, it seeks high-net-worth individuals seeking capital appreciation; discerning investors seeking exposure to a global basket of investments; investors seeking diversification for the portfolios and investors with a high-risk tolerance profile.

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 KES183 billion. 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 KES500 billion mark, with a growing appetite for foreign-currency and offshore funds.

Speaking during the launch on Wednesday, CIC Group Managing Director & Chief Executive Officer, Mr 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.”

How much do I need to invest and are there fees

• Minimum initial Investment: $1,000
• Minimum top-up: $100
• Minimum account balance: $1,000
• Minimum withdrawal amount: $10
• Fund Management Fee: 2.5% annually
• Lock-in Period: Six months from the initial deposit, all top-ups within the 6 months will be locked in.

CIC Group partnership with Swiss private bank Vontobel

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.

On his part, Mr Humphrey Gathungu, Managing Director of CIC Asset Management Limited, 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, and we are changing this model by making the initial investment one of the lowest in the market.”

CIC Global Balanced Special 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.

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