UAP assets unit targets millionaires

 

UAP Investments Ltd General Manager Anthony Mwithiga during the interview at the firm's Nairobi offices September 16, 2013. Photo/DIANA NGILA 

By CHARLES MWANIKI

In Summary

• UAP Investments gets CMA nod to launch fund management service.
• The minimum entry level for its new advisory products is Sh10 million for individuals and Sh50 million for companies.

UAP Investments, the fund management unit of UAP Holdings, has set its eyes on wealthy investors with new advisory products whose minimum entry level is Sh10 million for individuals and Sh50 million for companies.

UAP Group, whose core business is insurance, has been providing clients with in-house wealth management services, but has now launched a fully-fledged fund management unit after obtaining a licence from the Capital Markets Authority.

“There are some high net-worth individuals in this country who still don’t have access to investment advisory. They are part of our target and that is why we have designed the private wealth management product for them,” said UAP Investments general manager Anthony Mwithiga in an interview.

The fund manager also has collective investment schemes that include the money market fund, high yield bond fund, enhanced income fund and dividend maximiser fund that have a minimum investment threshold of Sh250,000, targeting both individual and corporate investors.

Mr Mwithiga said there is increased competition among investment fund managers with many concentrating on pension fund and unit trust investments, hence the move by UAP Investments to create a product targeting high net worth investors.

UAP Investments will also have pension fund and unit trust management.

The wealth manager will also be looking at capturing some business from international traders with the establishment of a US dollar money fund.

Such a fund has not been common in Kenya given that there are few dollar denominated assets in the country, where many assets tend to be denominated in the local currency. This contrasts with neighbouring countries where the use of the US currency is more common.

Other areas that the company is seeking to set up specialised funds in the mining, energy and infrastructure sectors to take advantage of the increased investment in these sectors as more natural resources are discovered in the country.

It will also be introducing a Real Estate Investment Trust (REITs) product soon, said Mr Mwithiga.

The fund manager is also planning the Africa Select opportunities fund which will help buyers invest in various African countries, especially in the region where UAP has opened branches in six states.

“We will be offering the fund management services in six regional countries, driven by the footprint of the larger UAP group. We (plan to) be in seven countries by the end of the year,” says Mr Mwithiga.

There are 23 licensed fund managers, which has heightened competition for market share.

CMA announced two weeks ago it had issued Alpha Africa Asset Managers (AAAM) with a fund manager’s licence, bringing to three the number of licences issued this year alone, following the licensing of Centum Asset Managers Limited (CAM) in June.