BUSINESS

Absa Bank Kenya Launches its Asset Management Subsidiary

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Absa Bank Kenya Managing Director Jeremy Awori. He noted that the new subsidiary fits in well with the bank's growth strategy and ambitions.
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Absa Bank Kenya has today launched Absa Asset Management Limited (AAML), a subsidiary of the bank that will offer fund and wealth management solutions for its customers.

The announcement comes after the bank received a greenlight from both Capital Markets Authority (CMA) and the Retirement Benefits Authority (RBA) as a fund manager.

Speaking during the launch of the subsidiary, Absa Bank CEO Mr. Jeremy Awori noted that the new subsidiary fits in well with the bank’s growth strategy and ambitions of being a fully-fledged financial institution, that offers more diverse financial solutions beyond banking across the region.

“This is a key milestone for Absa, as it brings us closer to our ambition of being a one-stop shop for all financial and investment business in Kenya. The Absa Asset Management Limited will be at the forefront in providing investment services for our customers with a diverse portfolio of local and international capital markets options. It is important to continue seeking investment opportunities and attain profitability even in the midst of unprecedented market disruptions caused by the pandemic. In the long run, we believe that our efforts will go a long way in helping to create employment, new avenues for investment and boost economic growth in general.’’  Mr. Awori said.

The new offerings will be rolled out in three phases including; institutional, retail and high-net worth propositions with the institutional proposition currently live.

READ ALSO>>>>>Absa Rolls Out Tap-to-Pay Solution

According to Mr. Awori, the financial institution has set up a team of experienced investment professionals and digital systems to offer fund management support through data driven insights and analytics that are crucial in managing client portfolios effectively.

“With appreciation of the evolving financial needs and preferences of our customers, we are making bold steps towards being the preferred financial provider by creating products and offering services that exceed their expectations for maximum value in return” adds Mr. Awori.

This new offering comes at a time when the Kenyan asset management industry has witnessed exponential growth over the last decade. According to PWC’s Asset Management Report 2020, the industry has registered a rise from both member contribution and good performances by an annual growth rate of 14.3%. Some of the factors contributing to the rise of the asset management sector include; technology, development of the financial services industry, urbanization, and improved infrastructure as well as a growing demographic dividend.

Absa Asset Management Limited Kenya (AAML) Board Chairman, Mr. Louis Otieno reassured customers and all stakeholders of AAML’s commitment to growing its operations and profitability over time. “We will continue to proactively identify and pursue areas of interest to contribute towards making our country the financial centre of choice in the continent, while continuing to be positive contributors to our economy.”

The organisation’s investment approach is guided by three long-term pillars – Value Growth, Income Generation and Value Preservation – aiding correctly categorized assets and strategically utilizing them in sync with appropriate economic cycles for maximum returns.

READ>>>>>Absa Bank Posts Ksh6.5B Profit Despite the Pandemic

Written by
BUSINESS TODAY -

editor [at] businesstoday.co.ke

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