Absa Kenya has officially launched the Absa Asset Management Limited, a wholly-owned subsidiary that will offer wealth and asset management, as it eyes a piece of the lucrative KSh 1.3 Trillion industry.
Absa Kenya CEO Jeremy Awori said that the new subsidiary is in line with the lender’s goal to become a wholesome financial institution with a diverse portfolio of products and services beyond the banking business across East Africa.
He said the subsidiary would enable Absa Kenya to achieve its ambition of being a one-stop-shop for all financial and investment needs of customers in Kenya with a diverse portfolio of local and international capital markets options.
Absa Kenya Customers to benefit
Absa Kenya customers can now invest in listed stocks, treasury and corporate bonds, private equity, property, and offshore investments.
“We are bringing demand driven products and investments solutions that are structured to address the current challenges of the investment market,” said Anthony Mwithiga, CEO – Absa Asset Management Limited.
This asset management subsidiary will offer investment management services to institutions such as fund managers and retail solutions for the retail market through 5 funds and several propositions for high net worth individual investors.
“The fund management sector has performed very well during this period. If you look at Q2 2020, after the pandemic was declared in Kenya, there was a 15% increase, from KSh76.5 billion in 31 March 2020 to KSh 88 billion in 30 June 2020,” said Wyckliffe Shamia, CEO Capital Markets Authority, one of the panelists during the online launch event.
With the Collective Investment Schemes(CIS) segment still in its infancy, Absa Kenya is making its entry with two money market funds, that is in both Kenya Shillings and US$, an equity fund that will invest in listed stocks at the Nairobi Securities Exchange(NSE), a bond fund as well as a balanced fund.
Absa Asset Management Limited is fully licensed by all regulators in the capital market and pensions industry as a Fund Manager to offer investment management services and products to both institutional and retail clients.
“We have placed all the necessary institutional capabilities to offer investment management services and products to both existing and prospective clients,” said Moses Muthui, Strategy Director, Absa Kenya Limited.
Available figures indicate that the Asset Management industry has registered significant growth with assets under Management now estimated at KSh 1.3 Trillion.
Absa Kenya has set up a team of experienced investment professionals and digital systems to offer fund management support through data-driven insights and analytics crucial in managing client portfolios effectively.
Absa Asset Management Limited Kenya Board Chairman Louis Otieno said, “We will continue to proactively identify and pursue areas of interest to contribute towards making our country the financial center of choice in the continent while continuing to be positive contributors to our economy.”