CHYS and CPN funds offered by Cytonn Group have been placed under court appointed administration as part of ongoing efforts to turn around their performance.
The application for administration was filed by the Chief Executive Officer of Cytonn Group, Edwin H. Dande pursuant to a resolution by the Board of CHYS investors.
Administration gives the funds the room to restructure, recover, and return value to investors. Administration is not liquidation
Following the onset of Covid-19, the funds experienced liquidity strains that were further aggravated by negative publicity and sustained regulatory attacks.
In the circumstances, the board of investors of the funds concluded that administration was the best option to provide an enabling environment to restructure the funds and return value to investors.
Speaking on the appointment, Cytonn Group C.E.O, Edwin H. Dande, noted that “This is in the best interest of investors for several reasons. First, administration provides an enabling environment for restructuring under a competent administrator.
Second, it gives a moratorium on any ongoing collection efforts so that all investors get to be treated equally.
“It is going to be a difficult period but we shall accord the process all the support it needs to ensure that we come out of this as an even stronger brand and investor value is preserved. In any event, the assets remain safe, tangible and visible, but illiquid hence the need to restructure. We remain committed to always putting our clients’ needs first”. He further added.
The other eight funds under the Cytonn Group continue to operate as usual with the regulated pooled funds experiencing a 17.2 percent growth in Q1’2021 as per the latest CMA quarterly bulletin.