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Old Mutual opens Sh10m wealth management service


Old Mutual’s asset management arm is targeting high-net-worth clients with a private wealth management service. FILE PHOTO | NMG

Old Mutual’s asset management arm is targeting high-net-worth clients with a private wealth management service that will admit those with investable funds of at least Sh10 million.

The service was initially only available to corporate clients but has now been opened to individuals able to commit the minimum capital in any currency.

The personalised service will be available in three investment portfolios –conservative, moderate, and aggressive- depending on the client’s risk appetite.

“The offering targets any investor with existing investments in financial securities and now needs them to be actively managed in a collective pot,” said Anthony Mwithiga, the managing director for Old Mutual’s asset management business in East Africa.

Part of the benefits of Old Mutual’s private wealth management service includes professional advice to build and own a highly personalized investment portfolio and ease of accessing local and international investment securities.

In addition, customers are allocated a dedicated portfolio manager and receive facilitation to use their investment portfolio as collateral to access credit facilities.

The conservative portfolio option targets investors seeking high levels of liquidity and minimum or no value volatility of invested funds while the aggressive portfolio option targets those able to tolerate higher levels of risk, low levels of liquidity, and high volatility of returns.

The moderate portfolio option is meant for clients or investors seeking a middle ground between low and high levels of liquidity and volatility of returns.

The initial investment will comprise either cash or a current investment portfolio in marketable securities such as Treasury bills, bonds, and listed equities.

In May, Old Mutual announced it is exiting the stock brokerage business in the country to concentrate on its asset management unit.

The company is the latest to target high-net-worth clients in a market where the ranks of the rich have grown rapidly in the past decade.

I&M Capital raised Sh700 million from 45 clients in its first six months of operations to December 2021.

The Africa Wealth Report that was released in April highlighted Kenya has 8,500 individuals with a net worth of over $1 million (Sh118 million).

The country was placed fourth in Africa in terms of the country’s number of dollar millionaires, behind South Africa (39,300), Egypt (16,900), and Nigeria (10,000).

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