Kenyan youth are opting to invest money in unit trusts instead of fixed deposits, a development that is stimulating growth of the fund management sector. UAP Investments Ltd General Manager Peter Ng’eno says this initiative will create more wealth among the young generation.
“Kenyans and especially youths are considering options like unit trusts rather than putting money in fixed deposit accounts and this is responsible for the increased growth of the fund management sector in the country,” notes Mr Ng’eno.
Mr Ng’eno says the UAP Investments money market fund has grown exponentially, something he expects to spur growth even in diaspora remittances. “The increased financial literacy among youths and attempts by Kenyans living in the diaspora to seek alternative areas to invest are pushing investors to capital market,” said Mr Ng’eno.
He spoke when he announced that UAP Investments had initiated a reward programme for investors with the company during this festive season. The investors will be able to earn and save extra cash by investing in UAP’s Unit Trust Fund. “Kenyans have showed great interest in our fund management services which we only rolled out this year and this has informed the move by UAP Investments to reward them with competitive and stable returns ahead of the Christmas celebrations.”
UAP Investments has over Ksh11 billion assets under its management even though the firm has been in existence for less than a year. It was launched in late July 2014 after UAP Holdings acquired licences from Capital Market Authority and Retirement Benefit Authority. In addition, the subsidiary also possesses a REIT manager’s license.