GenAfrica Asset Managers anticipates its money market fund to top Ksh 1 billon within the current quarter backed by favourable returns to its investors.
The firm says the mutual fund launched at the close of last year has mobilized Ksh 921 million under its management maintaining an annual yield of at least 15pc.
Speaking during the GenAfrica 7th Annual Investment Conference in Kwale County, GenAfrica Asset Managers Managing Director Patrick Kariuki said the robust performance affirms the firm’s commitment to delivering exceptional value to their investors.
“We truly believe in our money market fund and retail products. Our future in the retail space is focused on elevating client satisfaction and driving sustainable growth. We are anticipating that in the next two to three weeks, we will cross the Ksh 1 billion mark,” said Kariuki.
According to the firm, as of Wednesday, the money market fund daily yield was priced at 15.50pc and an annual effective yield of 16.76pc from a daily yield of 9.73pc and an effective annual return rate of 10.21pc in January this year.
“There has been a lot of profit made from lending to government and fixed income instruments. It doesn’t always go up. Now it’s plateauing and I am anticipating a shift from fixed income instruments to other areas like the capital markets, stock markets and the rest,” added Ndindi Nyoro, Chairman of the Budget, and Appropriations Committee at the National Assembly.
Additionally, GenAfrica says its Milele Income Drawdown Fund launched nine year ago to provide retirement benefits to eligible members and their dependents has also raised more than Ksh 6 billion.
GenAfrica has over the years largely focused on institutional clients, managing pension funds, and this has seen its portfolio grow to over Ksh 390 billion ($3b) with over 100 clients across various sectors.
Kuramo Capital Co-Chief Executive Officer Shaka Kariuki added that as the majority shareholder of the asset management company, the decision to venture into the retail space was as result of the changing times and a need to offer its clients a more diversified product range.
“Following Kuramo’s investment into GenAfrica, ensuring its dominance in pension fund management was paramount as well as pursuing further value additive initiatives. As such, launching the Money Market Fund became the natural diversification path after GenAfrica established itself as the leading institutional pension fund manager. This milestone is testament to the success of the Money Market Fund and we expect the strong growth to persist.”
The GenAfrica Money Market Fund targets goal-based savers who range from individuals, SACCOs, religious institutions, schools, investment groups, corporates, and retirement schemes among others.
