Jubilee Asset Management has unveiled a new Dollar Money Market Fund designed to offer investors a stable, dollar-denominated investment option for portfolio diversification. This newly launched fund targets US Dollar-denominated short-term fixed and floating rate debt securities issued by sovereign entities and corporations, both within Kenya and internationally. The aim is to provide a secure investment alternative amidst the current global economic uncertainties.
The Jubilee Money Market Fund caters to investors who prioritize capital preservation and liquidity while seeking moderate returns. It is particularly suited for those looking to hedge against currency risk by investing in near-cash, interest-bearing assets. This makes it ideal for individuals and entities shifting from high-risk portfolios to more stable investments to manage market volatility.
At the launch event, Julius Kipngetich, CEO of Jubilee Holdings Group, emphasized that the Jubilee Money Market Fund (USD) will allow investors to diversify their portfolios and mitigate currency risk through US dollar-denominated, near-cash interest-bearing assets.
“This initiative underscores Jubilee Asset Management Limited’s position as a market leader,” Kipngetich remarked. “It offers investors essential options to achieve their financial goals amid a complex economic landscape.”
The fund provides competitive returns that exceed those of traditional USD bank deposits, presenting investors with a more attractive alternative. By investing in this fund, individuals can diversify their holdings, reducing exposure to local currency assets. Additionally, the fund offers high liquidity, allowing investors easy access to their capital.
Focusing on short-term debt securities, the fund aims to reduce price volatility compared to longer-term instruments. With investments in both fixed and floating rate securities, it offers flexibility to leverage varying interest rate environments.
The fund’s strategy includes a mix of Kenyan and offshore securities, diversifying risk and enhancing potential returns. Its emphasis on capital preservation aligns with its objective of providing a low-risk investment option while maintaining competitive returns in a high-interest-rate environment.
The Dollar Money Market Fund also appeals to investors seeking to benefit from the strong performance of the US Dollar. It addresses the growing demand for investment products that offer both safety and reasonable returns in a challenging economic climate.
Dominic Kiarie, CEO of Jubilee Asset Management Limited, announced that the fund’s opening annual yield was 9.05 percent in USD, with the current annual yield at 6.64 percent.
“The Fund offers a valuable investment opportunity in USD hard currency, with diversified and enhanced returns,” Kiarie stated.
The launch of the Jubilee Money Market Fund arrives amid heightened global financial market volatility and uncertainty. With rising interest rates in major economies and ongoing geopolitical tensions, many investors are seeking refuge in more stable and predictable investment options.
As the global economic landscape evolves, the fund represents a strategic solution for risk-averse individuals and institutions aiming to maintain stability and achieve moderate returns amid ongoing uncertainty.
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