Britam eyes investors with fixed-income dollar fund
British Assets Managers CEO Barack Obatsa makes his remarks during the 2nd Business Daily Investor Conference held at Emara Ole Sereni on May 24, 2024.
Photo credit: Francis Nderitu | Nation Media Group
Britam Asset Managers, a subsidiary of Britam Holdings, have launched a US dollar-denominated fixed-income fund, widening investment options for its clients eyeing foreign currency-based facilities,
The fund has a minimum investment threshold of Sh129,180 ($1,000) and sets the floor for additional top-ups at Sh64,590 ($500).
The fund’s investment portfolio covers a variety of interest-bearing USD-denominated securities such as bank deposits, treasury bills, fixed-income funds, structured notes, sovereign bonds, and other money market or cash funds.
“The USD fixed income fund represents stability in uncertain times. The fund offers a timely opportunity for investors to safeguard their investments in a liquid fund that has hard currency returns,” noted Britam Asset Managers chief executive officer Barack Obatsa.
Britam Asset Managers says the product responds to the growing demand for dollar-denominated investments, providing stability, high yield, and liquidity for both local and international investors.
The asset management firm joins peers such as Jubilee Asset Management which recently launched a dollar-denominated money market fund.
Dollar funds differ from conventional shilling-based collective investment schemes through their investment in foreign currency-yielding assets/instruments.
The dollar funds have continued to grow in popularity and value in terms of assets under management having registered a growth rate of 260 percent between March 2023 and June 2024 to Sh23.8 billion from Sh6.6 billion, according to data from the Capital Markets Authority (CMA).
NCBA had the largest dollar fixed-income fund at the end of June with Sh6.4 billion in assets under management.
By the end of the same period, there were a total of 18-dollar funds under the various licensed collective investment schemes including Etica, Lofty Corban, Enwealth, Kuza, KCB, Nabo, Old Mutual, Absa, Dry Associates, CIC, and Sanlam.
Britam sees the fund as an attractive option to investors with USD-denominated future expenses, investors with USD income, and those cognisant of currency devaluation risks and seeking to preserve and potentially enhance the value of their investments.
“This fund addresses the increasing demand for dollar-denominated investment options and offers a secure and high-yielding opportunity for both local and international investors,” added Mr Obatsa.
