UAP investment has cranked up competition in Kenya’s fund management sector by offering the highest interest above the market rates of 11pc for its unit trust.
“Currently, Unit Trust Funds in Kenya attract returns of between 8pc to 11pc annually but UAP Investments aim is to offer more than these market rates,” said UAP Investment Limited General Manager Peter Ng’eno.
UAP launched its investments arm late July 2014 after UAP Holdings acquired licences from the Capital Market Authority and Retirement Benefit Authority. Currently, UAP Investments has over KES 11bn worth of assets under its management.
Market analysts will view the latest move by UAP to be in line with the insurers’ strategy to increase awareness and uptake of its products.
The company is also responding to a willing market, which Mr. Ng’eno says is benefiting from increased financial literacy amongst the youths and the desire by Kenyans in the diaspora to seek more transparent investment options.
“The diaspora community is now looking beyond the traditional investments avenues such as real estate and opting for other areas like the capital market which they see to be more transparent,” says Mr. Ng’eno.
In addition, he said, the youths are now considering options like Unit Trusts rather than putting money in fixed deposit accounts.
Ng’eno reckons the investment objective of the UAP Money Market Fund is to maximize the level of total returns to investors, by generating a reasonable level of current income and maximum stability for the money invested.
He says the Money Market Fund is designed for investors who are looking for competitive returns for their funds and has increasingly become more popular with individual Kenyans and investment groups keen on growing their money to achieve short and long term objectives like building capital to put a house deposit or buy land, going for holidays, weddings, school fees and investments among others.