Today, the investors of Cytonn High Yield Solutions(CHYS) and Cytonn Project Notes(CPN) held a virtual Extraordinary General Meeting(EGM) to discuss the status of these funds; given they have faced illiquidity following the impact of Covid–19, litigation, bad publicity and a lot of misinformation to investors. The meeting was held to discuss how investors would be able to unlock their liquidity in the funds after the force majeure extension.
The Board Chair of Cytonn Group- Professor Daniel Mugendi, thanked the clients for having stood with the Cytonn Brand this far and asked for candid, open and transparent discussions during the meeting.
Also speaking during the EGM, the CHYS board chair, Mr Maina Apologised to the investors for the current funds’ position and noted that “CHYS and CPN funds continue being illiquid, given the slow performance of the real estate sector since the onset of Covid-19”
Speaking during the meeting, Elizabeth N. Nkukuu noted that “The fund manager continues to seek ways to ensure that value for all the investors is preserved and this will only be realized once the projects are complete”. Elizabeth N. Nkukuu (CFA) took clients through the portfolio allocation in the ten real estate projects. “Given time, we are confident that Cytonn will deliver the real estate projects and pay back investors” she added
The meeting also served as a platform for investors to raise their concerns directly and the management was also given a chance to respond to these concerns. Some of the concerns raised by investors during the EGM centred on the question of what it would take for investors to unlock their funds.
Investors’ sentiments were geared towards repayment of their principal and interest. However as presented by their Acting Chair, Mr Maina, he noted that while he recognized their frustrations, investors could not be paid due to lack of asset sales.
Following the EGM, investors noted there was need to hold another meeting for the management to present detailed information on the options. The dates of the next meeting would be communicated to investors.
Cytonn Investments Management Plc is an independent investment management firm, with offices in Nairobi – Kenya and D.C. Metro - U.S. We are primarily focused on offering alternative investment solutions to Individual High-Net-Worth Investors, Global and Local Institutional Investors and Kenyans in the diaspora interested in the high-growth East-African region. We currently have over Kshs 82.0 billion of investments and projects under mandate, primarily in real estate.
For more information, kindly contact:
Teresiah W. King’ara
PR and Communications
+254 704 597107
Email: tkingara@cytonn.com
