GenAfrica money market fund closing on Sh1bn valuation
Source: Capital FM Kenya
Author: Kevin Rotich
NAIROBI, Kenya, April 26 - GenAfrica Asset Managers money market fund is expected to reach the Sh1 billion valuation in two weeks, buoyed by an annual return of 15 percent.
Already, the fund manager has more than doubled fund under management to Sh921 million as of December 2023, an improvement from Sh421 million during a similar period in the preceding year.
Unveiled in December 2022, the fund offers investment opportunities to a wide array of companies, including those in the retail sector.
"From a daily yield of 9.73% and an effective annual return rate of 10.21% following its inception in January 2023, the GenAfrica Money Market Fund is priced at a daily yield of 15.50% and an annual effective yield of 16.76% as at 24 th April 2024," the firm said in a statement.
Speaking during GenAfrica's 7th Annual Investment Conference in Diani, Kwale County, Chairman of the Budget and Appropriations Committee at the National Assembly, Ndindi Nyoro, lauded the performance, basing it on a strengthening economy.
"There has been a lot of profit made from lending to government and fixed income instruments. It doesn't always go up," Nyoro said.
"Now its plateauing and I am anticipating a shift from fixed income instruments to other areas like the capital markets, stock markets and the rest," he added.
According to GenAfrica Asset Managers Managing Director, Patrick Kariuki, the robust performance affirms the firm's commitment to delivering value to investors.
GenAfrica's Milele Income Drawdown Fund, a product for retirees launched in 2015, has raised more than Sh6 billion.
It is designed to provide retirement benefits to eligible members and their dependents.
"Following Kuramo's investment into GenAfrica, ensuring its dominance in pension fund management was paramount as well as pursuing further value additive initiatives," Shaka Kariuki, Co-CEO of Kuramo Capital, the majority shareholder of the asset management company, stated.