Apollo’s new unit trusts target Sh5bn assets in next two years

Apollo Asset Management Company has made its mass market debut with three new investment funds, with an eye on Sh5 billion assets in the next two years.
The starting investment for the products will be Sh10,000.

The Capital Markets Authority (CMA) gave the asset management firm approval to launch six products. The firm plans to roll out other products beginning next year.

“Despite the competitive environment, we intend to grow our offering through both conventional and non-conventional channels with an ambitious target of Sh5bn of unit trust assets by 2018,” said Apollo Asset Management chief executive Fred Mburu.

Initially the firm will launch a money market, equity and balanced fund while the bond, East Africa and Shariah-compliant funds will come to the market later.

“The three unit trust products offer our clients a variety of options depending on their risk appetite and objective for investment,” added Mr Mburu.

The CMA 2014 annual report says that as at June 2014, the unit industry was worth Sh34 billion, an 11 per cent increase from Sh31 billion a year earlier.

The value of the investment products is however expected to drop due to last year’s bear run that saw the Nairobi Securities Exchange (NSE) 20 Share Index drop by 10.6 per cent in 2015.