CIC Insurance Group has unveiled the CIC Global Balanced Special Fund, a U.S. dollar-denominated collective investment scheme designed to give Kenyan investors exposure to a balanced mix of local and offshore assets. The move marks the Group’s formal entry into the global investment market as it seeks to diversify its offerings and meet growing investor appetite for foreign-currency investments.
The fund, managed by CIC Asset Management (CICAM) — a wholly owned subsidiary of CIC Group — comes at a time when collective investment schemes (CIS) in Kenya are expanding rapidly. According to the Capital Markets Authority (CMA), total assets under management in CIS products have surpassed the KSh500 billion mark, underscoring growing interest among retail and institutional investors in regulated investment vehicles.
CICAM currently manages assets worth KSh183 billion, making it one of Kenya’s leading asset management firms. The launch of the new fund represents a strategic step to broaden its investment universe and align with emerging market trends that favour diversified, multi-currency portfolios.
“We are launching this fund at a time when there is rising demand for diversified offshore investments,” said Mr. Patrick Nyaga, Group Managing Director and Chief Executive Officer at CIC Group, during the product launch in Nairobi. “Through the product, we will give investors access to local fixed-income investments such as Treasury bills and bonds, alongside global instruments like exchange-traded funds (ETFs), equities and mutual funds.”
Broadening Access to Global Markets
The CIC Global Balanced Special Fund seeks to balance risk and return by spreading investments across asset classes and geographies. The fund’s structure allows investors to hold a portion of their wealth in hard currency while benefiting from global market exposure.
Mr. Nyaga noted that the fund’s balanced design — combining equities, bonds, and alternative investments — aims to deliver steady medium- to long-term growth while cushioning investors against volatility in any single market. “We are focusing on both wealth protection and growth, especially in an environment where local currency fluctuations and inflationary pressures have become more pronounced,” he said.
Strategic Partnerships
To bolster the fund’s global operations, CICAM has entered into partnerships with key financial institutions. The Trade Development Bank (TDB) will act as the fund’s strategic sponsor, while Swiss private bank Vontobel has been enlisted as the offshore execution partner, providing operational support and international market access.
These collaborations are expected to strengthen CIC’s offshore investment capabilities and ensure global standards of fund management, compliance, and reporting.
“Our mission through this fund is to democratise access to investment opportunities in a market segment that has long been the preserve of institutions and high-net-worth clients,” said Mr. Humphrey Gathungu, Managing Director of CIC Asset Management Limited. “Historically, special funds demanded high minimum investments and complex paperwork. We are changing this model by introducing one of the lowest initial investment thresholds in the market.”
Aligning with Investor Trends
Kenya’s investment landscape has evolved rapidly in recent years, with investors seeking alternatives to traditional savings and fixed deposits amid a challenging macroeconomic environment. Rising inflation, currency volatility, and high-interest rates have spurred interest in dollar-denominated assets and diversified portfolios.
The CMA’s data shows growing interest in foreign-currency-denominated funds, driven by investors seeking to hedge against local market fluctuations. The introduction of the CIC Global Balanced Special Fund comes as several asset managers in Kenya explore offshore diversification strategies to attract both retail and institutional clients.
Analysts note that the fund could appeal to Kenyans with dollar income streams, diaspora investors, and those looking for long-term capital preservation in hard currency. “Such funds provide a hedge against shilling depreciation and open up exposure to global equities and fixed income that typically outperform local markets in certain cycles,” said a Nairobi-based investment analyst.
Fund Features and Management
The CIC Global Balanced Special Fund is domiciled in Kenya and has received full approval from the Capital Markets Authority. The Co-operative Bank of Kenya will act as the fund’s custodian, ensuring safe asset holding and regulatory compliance.
The fund will reinvest all income, allowing investors to benefit from compounding growth over time. According to CICAM, the management team will retain tactical discretion to allocate assets dynamically — shifting between domestic fixed income and global markets depending on risk-adjusted opportunities.
“We want investors to think long-term. The fund’s reinvestment model helps build value over time while balancing risk across markets and currencies,” said Mr. Gathungu.
CICAM emphasized that the fund’s portfolio construction approach integrates risk management and diversification principles, protecting investors from major market swings while positioning for growth.
Market Context and Outlook
Kenya’s asset management industry has seen increased innovation in recent years as firms compete to offer differentiated products. The entry of dollar-based funds marks a new phase for local investors, particularly amid global economic uncertainty and fluctuating exchange rates.
According to the International Monetary Fund (IMF), emerging market funds with diversified exposure to both local and global assets tend to perform better in volatile cycles. The CIC Global Balanced Special Fund’s launch is therefore aligned with global trends promoting multi-asset, multi-market investment strategies.
CIC’s entry into the offshore investment segment also signals confidence in Kenya’s regulatory framework and the sophistication of its investor base. The CMA’s reforms — including flexible approvals for new fund classes — have made it easier for asset managers to introduce global products.
Mr. Nyaga reaffirmed the Group’s commitment to expanding investor options while maintaining strong governance and transparency. “We continue to innovate responsibly, ensuring that every new product we introduce aligns with investor needs, regulatory standards, and long-term value creation,” he said.
As the CIC Global Balanced Special Fund opens to subscriptions, the Group expects strong uptake from both individual and institutional investors seeking global exposure without the complexity of managing multiple offshore accounts.
The launch underscores the growing maturity of Kenya’s capital markets and the increasing confidence of local financial institutions in offering internationally benchmarked investment products.
