Aga Khan IV-backed Jubilee launches dollar-denominated money market fund

Oluwatosin Racheal Alabi -

Key Points:

  • Jubilee Asset Management launches a dollar-denominated money market fund targeting retail and institutional investors for stable U.S. dollar returns.
  • The fund requires a minimum investment of $1,000 and aims to hedge against local currency volatility.
  • Jubilee Holdings CEO highlights the fund’s contribution to the company’s market growth, supported by a significant investment from Aga Khan IV.

Jubilee Asset Management, a subsidiary of Jubilee Holdings led by Aga Khan IV, also known as Shah Karim al-Husayni, has launched a dollar-denominated money market fund.

This new offering is designed for retail and institutional investors seeking stable returns in U.S. dollars.

The Jubilee Money Market Fund (USD) requires an initial minimum investment of $1,000 (Sh130,000), with additional top-ups set at $500 (Sh65,000). This contrasts with the shilling-denominated fund, which has a lower entry point of Sh5,000 and minimum top-ups of Sh1,000.

This dollar fund is aimed at investors seeking competitive returns in dollars, particularly those transitioning from high-risk investments to a more conservative portfolio. It also serves as a hedge against the volatility commonly associated with local currency investments.

Jubilee Holdings’ market growth

Jubilee Holdings CEO Julius Kipngetich noted that the new fund not only offers investors additional options but also contributes to the growth of Jubilee Asset Management’s market share. The company improved its ranking in the asset management sector from 29th to 15th place by the end of 2023.

Dominic Kiarie, CEO of Jubilee Asset Management, reported that the fund’s initial annual yield during the testing phase was 9.05 percent in dollars, with the current yield at 6.64 percent.

The fund benchmarks its returns against the 1-month dollar Secured Overnight Financing Rate (SOFR), a globally recognized reference rate. The fund invests in secure, dollar-denominated short-term fixed and floating rate debt securities, issued by both sovereign entities and corporations in Kenya or offshore.

This ensures a balance of security and liquidity for investors. Additionally, the fund offers monthly income distribution, with the option to reinvest for compounded returns.

Founded in Mombasa as the region’s first insurer, Jubilee Holdings has grown into East Africa’s leading insurance provider. With more than 1.9 million clients, it is the largest composite insurer in the region, boasting operations across Kenya, Uganda, Tanzania, Burundi, and Mauritius.

The Aga Khan Fund for Economic Development holds a substantial 37.98-percent stake (27,494,108 shares) in Jubilee Holdings, solidifying Aga Khan IV’s position as a leading Kenyan investor. The Fund also holds an 11.85-percent interest in Jubilee’s Mauritian subsidiary.