Jubilee Asset Management has rolled out a new dollar-denominated fund as it seeks to diversify products for both its retail and institutional investors. Jubilee Money Market Fund USD will have a minimum initial subscription of $1,000, translating to about Sh130,000, with subsequent top-ups at a minimum of $500 equivalent to about Sh65,000. The new fund will be an alternative to the existing Jubilee Money Market Fund that is denominated in local currency, which has a lower entry point at Sh5,000 with top-ups of a minimum Sh1,000.
It targets investors seeking competitive dollar returns, especially portfolio diversifiers and more specifically those looking to move their investments from high-risk instruments to low-risk ones. The fund also protects against market volatility with stable and predictable returns.
It provides investment in secure, short-term, dollar-denominated debt securities, both on- and offshore. The securities purchased for the portfolio include those issued by sovereigns and corporates to ensure liquidity of the fund, so most investors can easily sell their holdings when required.
According to Jubilee Holdings CEO Julius Kipngetich, it is not only expanding investment opportunities for its clientele but also a boost in the market share for Jubilee Asset Management. The subsidiary had climbed the rankings of the list of wealth management firms in Kenya from 29 to 15 by the close of 2023.
According to Dominic Kiarie, chief executive of Jubilee Asset Management, the dollar yield annually has been 9.05 percent for the fund during the test, and currently sits at 6.64 percent. Returns from the fund are benchmarked to the 1-month dollar secured overnight financing rate—a global reference rate. The fund allows investors to reinvest their monthly income distribution for compounded returns.
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