The objective of the Enwealth Money Market Fund is to generate interest income.
This is achieved through investing in interest-earning money market instruments which have a maximum weighted average of 13 months.
Investment Objective
These interest-bearing money market instruments include:
- Credit rated private commercial papers/approved public commercial papers,
- Treasury bills,
- Government securities,
- Call Deposits,
- Certificate of deposit including fixed deposits in commercial banks and deposit taking institutions.
- Any other like instruments as specified by the Central Bank of Kenya from time to time.
These selected securities for the Enwealth Money Market fund provide:
- Reasonable level of current income,
- Steady growth through re-investment of income earned, and
- Maximum stability for capital invested.
The guiding Investment principles for the Enwealth Money Market Fund are:
- To invest only in money market instruments spread amongst institutions of repute.
- To manage the portfolio according to best practice of prudent investing.
- To administer the portfolio according to best practice by treating the generation of income as a higher priority than capital growth.
- To minimize losses, while maximizing on investment returns, by investing in near cash or cash deposits.
- To ensure the Fund retains an acceptable level of liquidity to meet any liquidation
obligations with the promised timelines.
Permissible assets
The Fund will predominantly invest in money market instruments in the Kenyan investment markets at all times and will be permitted to make investments in a mix of securities, subject to the maximum permitted by the Collective Investment Schemes Regulations and the strategic asset allocation provided for in the Information Memorandum or any other securities, which may be included in a portfolio which are consistent with the portfolio’s investment policy.
The following asset classes are considered to be appropriate investments for the schemes:
- Short term money market instruments, including cash, call and fixed deposits;
- East African government securities including treasury bills, treasury bonds, infrastructure bonds;
- Corporate bonds and commercial papers of suitable credit rating as determined by the fund manager;
- Offshore debt securities.
Key Features of the Fund
| Investment Attribute | Description |
| Return | Interest income declared daily (net of all charges) credited to client investment at end of every month. |
| Risk | Low risk on the basis of eligible assets classes and diversification. |
| Liquidity | High liquidity (Liquidations paid within T+2 days) |
| Preferred Investment tenure | Investors with a tenure of between 1 month and 3 years |
| Eligible assets classes taxation | As per permissible assets and asset allocation |
| Taxation | Subject to withholding tax on interest income |
| Regulated | Yes, by the Capital Markets Authority |
| Suitability |
Suitable for investors with:
|
| Purchase price | KES 1 per unit |
| Charges |
|
| Initial Investment | KES 1000 |
| Minimum Monthly top-up | KES 1000 |
| Pricing Frequency | Priced daily and published on at least two newspapers with national circulation. |
Interest Income Distribution Dates
Distribution of interest income earned shall take place on a monthly basis and credited to the respective investor portfolio.
Disclaimer
- There are no guarantees on the client’s capital as the performance of units and interest- bearing investments in the underlying unit trust determines the value of the unit holders in the Fund.
- The yield of units can go down as well as up as a result of changes in the value of the underlying investments.
- Past performance should not be used as a guide to future investment performance.
- The investment may be held in any number of funds, combination, or proportions subject to the fund minimums. These unit trusts can be selected to suit different investment needs and they can be combined to build a diversified portfolio.
- The yield of units or the price of units, and the unit’s income and distributions may vary.
- In certain specified circumstances investors’ right to redeem their units may be suspended.