18 mutual funds still without fund managers

Eighteen Mutual Fund and Unit Trusts have failed to appoint new fund managers till now despite the Securities and Exchange Commission (SEC) having directed their Boards of Directors and Trustees to do so.

This directive followed the revocation of the licenses of 53 Fund Management Companies last year by SEC, in accordance with section 88 (6) of the Securities Industry Act, 2016 (Act 929).

Information available indicates that the Boards of Directors (for the Mutual Funds) and Trustees (for Unit Trusts) of the 18 Collective Investment Schemes (CIS) whose Fund Managers had their licenses revoked last year, were directed by the SEC on 15th November 2019 to appoint new fund managers for the management of the various affected CIS by 10th January 2020, which itself was an extended deadline.

These mutual funds include; All Time Bond Fund Limited; Galaxy Money Market Fund Limited; Gold Money Market Fund Limited; Nordea Income Fund Limited.

Omega Income Fund Limited, as well as Omega Equity Fund Limited and Weston Oil and Gas Fund Limited.

Other Unit Trust are EM Balanced Unit Trust; Freedom Fund Unit Trust; Gold Fund Unit Trust; McTrust Unit Trust and UniSecurities Unit Trust.

In accordance with Act 929, the SEC is expected to engage the respective trustees and directors, in the interest of investors in order to determine other possible courses of action for unitholders/shareholders of the unit trusts/mutual funds that were unable to meet the requirements of the previous directive.

Since the revocation of licenses of the fund managers, the investors of these mutual funds and unit trust have not had the benefit of having fund managers who could have taken advantage of financial market opportunities such as better market interest rates or share prices, as well as the possibility to either to enter or exit particular investments. In similar vein shareholders/unit trust holders have not been able enter or exit CIS that have not had fund managers since November last year.

Although the actual investments made by a CIS is held by the trustees rather than the fund manager, the travails and mis-conduct of fund managers which led to their license revocation by SEC could possibly have affected the financial integrity the investment portfolio under management and analysts are suggesting that trustees should do a thorough examination of the investment portfolios left behind, before new fund managers take up the mantle.

Nevertheless, six other mutual funds have appointed new fund managers. These include CDH Balanced Fund Limited which will be managed by the Linx Capital Limited; Sirius Opportunity Fund Limited to be managed by Waica Re Capital Limited; First Fund Limited and Heritage Fund Limited to be managed by TTL Capital Limited; Galaxy Balanced Fund Limited to be managed by Octane DC Limited; and Ideal Sika Fund Limited which will be managed by IGS Financial Services Limited.

In view of this, the SEC has directed the newly appointed fund managers to provide further details on their appointment as part of measures to take over managing their new portfolios and engaging the shareholders.


Pursuant to Section 122 (2) (b) of the Securities Industry Act, 2016 (Act 929 or “the Act”), the Securities and Exchange Commission (SEC) on Friday, November 8, 2019, revoked the licences of 53 Fund Management Companies.

The revocation of the licences of these companies became necessary as they had largely failed to return client funds, which remain locked up.

Source: goldstreetbusiness.com

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