Cytonn Investment is set to launch its asset management division in Nairobi on March 11, 2019, following approval from the Capital Markets Authority as a licensed Real Estate Investment Trust manager. The new entity, Cytonn Asset Managers, will expand the firm's existing Sh21 billion asset management portfolio.
The division aims to capture Sh1.2 trillion in assets held by retirement benefit schemes, leveraging high-yield investments in bonds, equities, and real estate that have delivered 18% annual returns to clients. Edwin Dande, Cytonn's CEO, emphasized the company's focus on digitizing money market funds to enable client access via digital devices.
Dande highlighted gaps in fund manager expertise, stating that many investors face suboptimal risk-adjusted returns compared to traditional investments. The firm plans to offer alternative investments previously limited to private markets, including de-risked real estate opportunities in researched areas.
Cytonn's expansion strategy includes establishing operations in Mombasa, Kisumu, Eldoret, Nyeri, Meru, and Nakuru. Victor Odendo, head of Unit Trusts, noted that qualified asset managers provide regulatory oversight and tailored investment planning, addressing poor property market performance due to inadequate management.
