Jubilee Asset Management, a subsidiary of Jubilee Holdings, has launched a dollar-denominated fund that requires an initial minimum investment of $1,000 (Sh130,000), opening doors to retail and institutional individuals.
The fund, dubbed Jubilee Money Market Fund (USD), will require a minimum top-up of $500 (Sh65,000) and marks a diversification from the shilling-denominated fund that requires an initial minimum investment of Sh5,000 and top-ups of at least Sh1,000.
The fund targets investors looking for competitive dollar returns on investments in the short to medium term. It is also eyeing investors wishing to switch from a high-risk to a low-risk portfolio and hedge against market volatility.
Jubilee said the dollar-denominated fund will cater to investors seeking stable and predictable dollar-denominated returns while maintaining liquidity by allowing investors to withdraw funds with ease when needed.
The fund invests in secure dollar-denominated short-term fixed and floating rate debt securities issued by sovereigns and corporates in Kenya or offshore.
Jubilee Holdings' CEO Julius Kipngetich said that the fund will provide investors additional investment options while also growing the market share of Jubilee Asset Management. The wealth management subsidiary's ranking, based on assets being managed by collective investment schemes, improved from position 29 to position 15 at the end of 2023.
Jubilee Asset Management CEO Dominic Kiarie said the opening annual yield for the fund was 9.05 percent per annum in dollars during the testing period, while currently the annual yield is at 6.64 percent per annum.
The fund benchmarks returns on the 1-month dollar secured overnight financing rate (SOFR), a global reference rate. Income distribution is available monthly, and investors can choose to reinvest the distribution for compounded returns.
