Cytonn places two investment funds under administration in ongoing restructuring

NAIROBI, Kenya, Oct 8- Cytonn  Friday said it had placed two of its investment funds, High Yield Solutions and Cytonn Projects 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 Dande pursuant to a resolution by the Board of Cytonn High Yield Solutions investors.

The administration gives the funds the room to restructure, recover, and return value to investors.

“Following the onset of Covid-19, the funds experienced liquidity strains that were further aggravated by negative publicity and sustained regulatory attacks,” the group said in a statement dated Friday.

“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,” it added.

Speaking on the appointment, Cytonn Group Chief Executive Officer Edwin Dande, noted that, “This is in the best interest of investors for several reasons.”

According to Cytonn, the administration provides an enabling environment for restructuring under a competent administrator.

It also 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, ” Dande added.

Dande further gave an assurance that the assets remain safe, tangible, and visible, but illiquid hence the need to restructure with the aim of putting the clients’ needs first.

The other eight funds under the Cytonn Group continue to operate as usual with the regulated pooled funds experiencing a 17.2percent growth in Q1’2021 as per the latest CMA quarterly bulletin.