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All About the Cytonn Money Market Fund
Money Management

All About the Cytonn Money Market Fund

Money Market Funds (MMFs) have emerged as a popular investment option in Kenya due to their low-risk nature and the potential for steady returns. One such fund is the Cytonn Money Market Fund (CMMF), managed by Cytonn Asset Managers Limited (CAML), a regulated affiliate of Cytonn Investments Management Plc. 

The Cytonn Group has faced legal issues with regard to its subsidiaries - Cytonn High Yield Solutions (CHYS) and Cytonn Real Estate. The two subsidiaries have been placed on liquidation over inability to pay investors although the MMF is managed through a separate, regulated legal entity. 

This article offers essential information about CMMF, its features, and how investors can access it.

The Cytonn Money Market Fund is regulated by the Capital Markets Authority (CMA), and aims to provide investors with current income while preserving capital and maintaining liquidity. To achieve this objective, the fund primarily invests in short-term, low-risk debt securities, including treasury bills, fixed deposits, and commercial paper.

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Key Features of the Cytonn MMF

  • Minimum Investment: Ksh1,000 for initial investments; Ksh100 for additional top-ups
  • Risk Profile: Low
  • Liquidity: Flexible access to funds with no lock-in period
  • Management Fee: 2.0% per annum
  • Interest Calculation: Calculated daily and credited net of costs
  • Custodian: SBM Bank Kenya Ltd

As of January 2025, the Cytonn Money Market Fund delivered an annualized return of 16.6%. The fund's asset allocation at the end of January 2025 was as follows:

  • Government Securities: 15.0%
  • Cash Holdings: 2.7%
  • Collective Investment Schemes: 33.5%
  • Fixed and Demand Deposits: 48.8%

Read Also: All You Need to Know About Safaricom’s MMF: Ziidi

How to Open and Access a CMMF Account

  • Using Cytonn App:

    1. Download the Cytonn App from the Play Store or App Store.
    2. Open the App and Sign Up.
  • Using Web Portal:

    1. Visit clients.cytonn.com.
    2. Click Sign Up and follow the instructions.
  • Using USSD:

    1. Dial *809# and select Create an account.

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The Cytonn Money Market Fund may appeal to investors who are looking for:

  • Stability and Capital Preservation: Low-risk investments focused on safeguarding principal.
  • Short-Term Investment Options: A recommended minimum investment horizon of three months.
  • Liquidity: Easy access to funds within 24 to 48 hours.

For more information, interested investors can reach Cytonn Asset Managers Limited.

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