UAP ventures into wealth management to grow income
UAP group managing director Dominic Kiarie during a past interview at his office. Photo/FILE
What you need to know:
The licence allows UAP to offer wealth advisory services and collective investment schemes in which investors pool their assets to be managed by professionals.
The products to be offered include the UAP Money Market Fund designed for investors who are looking for competitive returns for their liquid funds and UAP High Yield Bond Fund as a safe haven from market volatility.
The Capital Markets Authority (CMA) has licensed UAP Investments to offer unit trusts to investors, giving the financial services group a window to venture into wealth management.
The licence allows UAP to offer wealth advisory services and collective investment schemes in which investors pool their assets to be managed by professionals.
UAP is banking on its investment management and advisory services arm to grow revenue and cut over-reliance on the insurance business which accounted for 95 per cent of revenue last year.
“Investors are faced with an overwhelming selection of potential funds and the financial services industry offers a vast array of investment products to make it easy to diversify,” said Dominic Kiarie, UAP group managing director.
“UAP Investments is providing a platform where investors can evaluate the opportunities to identify the most suitable investment vehicle suited to their profiles and objectives.”
The products to be offered include the UAP Money Market Fund designed for investors who are looking for competitive returns for their liquid funds and UAP High Yield Bond Fund as a safe haven from market volatility.
UAP said it plans to launch a series of real estate investment options this year after it was granted a REIT (Real Estate Investment Trust) manager licence in December last year by the CMA.
The financial services firm is also banking on real estate for growth and is currently putting up a 15-storey office building in Juba and a 31-storey office complex in Nairobi’s Upper Hill district.
UAP’s full-year net profit grew by a third to hit Sh1.8 billion last year from Sh1.3 billion in 2012 driven by growth in premiums, regional expansion and diversification into property.
Kenya accounts for 70 per cent of UAP’s earnings with the rest coming from its regional operations in Uganda, Tanzania, Rwanda, DR Congo and South Sudan.
The company has interests in insurance, real estate, securities brokerage, investment management and financial advisory.
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