CMA approves fund scheme for the Diaspora

By James Anyanzwa

The Capital Markets Authority (CMA) has approved the application for consent to register a Diaspora Unit Trust Funds Scheme by InvesteQ Capital Limited.

Ms Stella Kilonzo, the CMA chief executive said the fund, which targets Kenyans in the Diaspora will operate pursuant to the procedures prescribed in the Capital Markets Act and Capital Market (Collective Investment Scheme) Regulations, 2001.

A unit trust fund is an investment scheme that pools money together from many investors who share the same financial objective. It is also managed by a group of professional managers.

The portfolio managers invest the pooled money in a portfolio of securities such as shares, bonds and money market instruments or other authorised securities to achieve the objectives of the fund.

In exchange of the money received from the investors, the fund issues units to investors who are known as unit holders.

The fund earns income from the investment in the form of dividends, interest income and capital gains.

The underlying value of the assets of a unit trusts is always directly represented by the total number of units issued multiplied by the unit price less the transaction or management fee charged and any other associated costs.