All You Need to Know About CIC Money Market Fund

Money Market Funds (MMFs) are increasingly becoming popular in Kenya mostly due to their easy accessibility and daily returns. However, if you have been observing market trends, MMFs rates have been declining. The average daily effective rate in February 2025 declined to 11.93% per annum, down from 12.19% in January. 

Despite the overall decline, some MMFs have been offering competitive returns and investors are still looking into these funds.

In this series, we are looking into some MMFs available for Kenyans. Previously, we looked into the Etica MMF, Ziidi MMF, Cyton MMF, Nabo MMF, and the Sanlam MMF. Today, we are looking at The CIC Money Market Fund (MMF).

The CIC MMF is a low-risk investment option designed to offer capital preservation, liquidity, and inflation protection. Managed by CIC Asset Management Ltd, the fund aims to provide stable returns by investing in short-term, high-credit-quality financial instruments.

This article provides a detailed overview of the CIC Money Market Fund, helping investors make informed decisions.

Read Also: Highest Paying MMFs in Kenya, Based on February 2025 Returns

Key Features of the CIC MMF

• Minimum Investment: Ksh5,000
• Minimum Top-up: Ksh1,000
• Annual Management Fee: 2.0%
• Income Distribution: Monthly
• Assets Under Management (AUM): Ksh63.78 billion (as of November 2024)
• Fund Manager: CIC Asset Management Ltd
• Launch Date: June 2011
• Risk Profile: Low
• Trustee: Kenya Commercial Bank (KCB)
• Custodian: Co-op Custodial Services
• Auditors: PricewaterhouseCoopers (PwC)

Read Also: Ksh MMF vs. USD MMF – Which Money Market Fund Should You Choose?

Who Should Invest in the CIC MMF?

The CIC Money Market Fund is suitable for investors looking for:

• Capital Preservation: Risk-averse individuals seeking to protect their principal.
• Short-Term Investments: A place to park surplus funds temporarily.
• Emergency Fund Savings: Quick access to cash without penalties.
• Competitive Returns: Higher yields than traditional bank savings or call deposits.
• Flexible Investing: The option to switch or transfer funds to other CIC funds.

Benefits of Investing in CIC MMF

Liquidity: You can withdraw your funds at short notice with no penalty fees. 

Flexibility: You can switch or transfer funds to another fund that you have with CICAM.

Security: The fund invests in government paper and liquid instruments. 

Competitive Returns: Interest is calculated daily and credited at the end of each month. As an institutional client, the fund benefits from placing deposits in large sums and as such is able to negotiate for competitive rates. 

Professional fund management: Investors benefit from management by professionals.

Read Also: What to Consider When Choosing an MMF

How to Invest in the CIC Money Market Fund

Investors can start with a minimum investment of Ksh5,000 and top up with as little as Ksh1,000. Here’s how to get started:

1. Contact CIC Asset Management Ltd via phone or email.
2. Visit their website: www.cic.co.ke
3. In-person: Visit any CIC office for personalized assistance.

Important Considerations

• Returns are not guaranteed: Past performance does not guarantee future results, and unit prices may fluctuate.
• Liquidity risks: Withdrawals are generally allowed at short notice, but extreme market conditions may affect this.
• Regulation: The fund is regulated by the Capital Markets Authority (CMA), but the CMA does not guarantee the financial soundness of the fund.

Conclusion

The CIC Money Market Fund offers a secure and flexible investment option for those seeking capital preservation, liquidity, and steady returns. With professional fund management, diversified asset allocation, and competitive rates, the fund remains an attractive choice for short-term investors.

For more information, contact CIC Asset Management Ltd or visit their website.