Equity enters unit trust market
News
By
Standard Reporter
| Oct 02, 2015
Equity Investment Bank (EIB) has nearly Sh2.04 billion funds under management, barely three months into the soft launch of unit trust products.
EIB has developed unit trust products with an entry premium from Sh1,000, as it seeks to demystify asset and wealth management, while encouraging a savings culture.
Equity Investment Bank Managing Director, Irungu Nyakera, disclosed that the firm’s Money Market and Balanced Fund unit trust investment products had been designed to provide further financial inclusivity for clients wishing to enjoy higher returns on their savings.
The mutual fund products by EIB, Nyakera said, provide a low denomination entry point with a Sh1,000 minimum investment for both funds. This week, EIB commenced the publishing of its daily yields for the mutual funds as part of the standard regulatory requirements. “At Equity Investment Bank, we are glad that our mutual funds have provided us with a solid take off momentum that will allow us to revolutionise the local Asset and Wealth Management market,” Nyakera said.
Currently, EIB’s Money Market fund, stands at Sh1.95 billion while the Balance Fund is at Sh95.2 million. The Managed Accounts comprising both equities and fixed income contribute an additional Sh1.09 billion. With a Sh1,000 minimum balance tag, the EIB Money Market fund is geared at providing a high level of yields (10-15 per cent) in the short term.
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To achieve this, the portfolio is invested in fixed income securities of various durations at attractive yields to ensure the return on the Fund is maximised. On the other end, the EIB Balanced Fund also with a minimum investment tag of Sh1000 aims at realizing a reasonable level of current income and enhanced capital growth.
This is achieved by investing in a diversified spread of equities and fixed income securities. The EIB Balanced Fund has a strong bias feature on equities and related securities offering long-term value for an anticipated 15-18 per cent return on investment yield.
However, the Balanced Fund is presently more biased towards fixed income securities due to high yields and slightly negative performance of stock market. Plans by Equity Investment Bank are at an advanced stage to avail the two funds countrywide as they are currently available only in Nairobi, across the Equity Bank branch network.
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