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Old Mutual opens 10 million shillings wealth management service


Old Mutual’s asset management arm targets high net worth clients with a private wealth management service. FILE PHOTO | NMG

Old Mutual’s asset management arm is targeting high net worth clients with a private wealth management service that will admit those with investable funds of at least 10 million shillings.

The service was initially reserved for corporate clients, but is now open to individuals able to commit the minimum capital in any currency.

The personalized service will be available in three investment portfolios – conservative, moderate and aggressive – depending on the client’s risk appetite.

“The offering targets any investor with existing investments in financial securities and now needs them to be actively managed in a collective pot,” said Anthony Mwithiga, managing director of Old’s asset management business. Mutual in East Africa.

Part of the benefits of Old Mutual’s private wealth management service includes professional advice on building and owning a highly personalized investment portfolio and easy access to local and international investment securities.

Additionally, clients are assigned a dedicated portfolio manager and receive facilities to use their investment portfolio as collateral to access credit facilities.

The conservative portfolio option targets investors who seek high levels of liquidity and minimal or no volatility of the funds invested, while the aggressive portfolio option targets those who are able to tolerate higher levels of risk, low liquidity levels and high volatility of returns.

The Moderate Portfolio Option is intended for clients or investors seeking a balance between low and high levels of liquidity and volatility of returns.

The initial investment will include either cash or a current investment portfolio in marketable securities such as treasury bills, bonds and listed stocks.

In May, Old Mutual announced that it was leaving the equity brokerage business in the country to focus on its asset management unit.

The company is the latest to target wealthy customers in a market where the ranks of the wealthy have risen rapidly over the past decade.

I&M Capital raised 700 million shillings from 45 clients in its first six months of operation to December 2021.

The Africa Wealth Report which was released in April highlighted that Kenya has 8,500 people with a net worth of over $1 million (118 million shillings).

The country was ranked fourth in Africa in terms of the number of dollar millionaires, behind South Africa (39,300), Egypt (16,900) and Nigeria (10,000).

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