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Apollo Asset Management Company (AAMC) has received regulatory approval paving way for the launch of three new unit trust products which will target the retail market.
The products were launched by the fully owned subsidiary of the Apollo Group are Wednesday this week by Apollo Money Market Fund, Apollo Equity Fund and Apollo Balanced Fund.
Apollo Asset Management is an investment and wealth management firm licensed by the Retirement Benefits Authority (RBA) and the Capital Markets Authority (CMA) to conduct fund management and investment advisory services.
Speaking during the launch, the Chief Executive Officer, Fred Mburu said that the new products would enrich the group’s portfolio that also includes insurance and property.
“We will seek to deliver superior investment returns to our customers. Our rich heritage and track record in provision of various financial services speaks for itself. The three unit trust products offer our clients a variety of options depending on their risk appetite and objective for investment,” he said.
Unit Trusts offer investors an affordable way to diversify their investment portfolios and have much greater exposure to different asset classes. Prospective investors in the Apollo Unit Trusts have flexibility to determine the period they wish to remain investors as well as the amounts they wish to invest.
The Apollo Money Market Fund invests in deposits, short term treasury paper and near cash holdings in the Kenyan market over the short term period of between six months and one year. It is a low risk investment that earns interest; and is ideal during times of stock market turbulence.
The Apollo Equity Fund invests predominantly in professionally selected shares and stocks listed on the Nairobi Stock Exchange. It is a higher risk investment for a period of between four and seven years and earnings are derived through dividends and capital gains.
The Apollo Balanced Fund is your ‘half-way house’ product invests in a combination shares for growth and interest bearing assets for income in Kenya with some offshore element offering a balanced portfolio. This medium risk investment is recommended for the medium term investors looking to invest for a period of between three and five years with returns in the form of capital gains, interest and dividends.
The minimum investment in Apollo Unit Trust Funds is KSh10,000 initially and KSh5,000 for subsequent top-ups.
Mr. Mburu noted that whilst these three investment products only mark Apollo’s entry to retail market mass there is opportunity, subject to market conditions, to rollout other more sophisticated Unit Trust in the near future e.g. Bond Fund, East Africa Fund and a Sharia Compliant Fund.
Other products offered by Apollo Asset Management include Pension Fund Management, Wealth Management and advisory creating Multi-Asset Strategies and Solutions.