Market News

ICEA Lion eyes retail unit trust fund investors with online platform

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ICEA Lion Asset Management business development general manager Elizabeth Irungu. --DIANA NGILA

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Summary

  • The portal dubbed ICEA DigiTrust aims to attract low-income investors while drawing in more customers to the firm’s unit trust offering.
  • ICEA Lion Asset Management Business Development general manager Elizabeth Irungu said the platform will require a minimum initial deposit of Sh500 by an investor and a top up of as low as Sh20.
  • Previously, the company had set a minimum initial size of investment at Sh10,000 and a minimum top up of Sh2,000, cutting off many Kenyans who were not able to raise the amount.

ICEA Lion Group has launched an online platform that will give retail investors access to the company’s money market fund at a lower minimum initial investment.

The portal dubbed ICEA DigiTrust aims to attract low-income investors while drawing in more customers to the firm’s unit trust offering.

ICEA Lion Asset Management Business Development general manager Elizabeth Irungu said the platform will require a minimum initial deposit of Sh500 by an investor and a top up of as low as Sh20.

Previously, the company had set a minimum initial size of investment at Sh10,000 and a minimum top up of Sh2,000, cutting off many Kenyans who were not able to raise the amount.

The company’s money market fund investment assets include Treasury bills, short-term corporate bonds, certificate of bank deposits and Treasury bonds.

“DigiTrust enables individual savers and investors to deposit in and withdraw from ICEA Lion’s money market fund on a secure platform with an initial investment of as low as Sh500 and a top up of any amount,” Ms Irungu said.

“Investors will be able to make withdrawals anytime via their phones. Any amount above Sh10,000 will be sent through a bank account in 24-48 hours.”

The fund has an annualised interest rate of 8.3 percent.

Nairobi Securities Exchange chief executive Geoffrey Odundo added that adoption of technology in the unit trust sector will enable players to offer services at friendlier prices, reducing the overall investment cost for retail investors and institutional investors.