Absa Bank Kenya has launched an asset management arm to extend fund and wealth management services for its customers
The formation of Absa Asset Management Limited (AAML) follows the clearance by the Capital Markets Authority (CMA) and the Retirement Benefits Authority (RBA) for the establishment of a fund manager.
Absa Bank CEO Jeremy Awori said that the new subsidiary fits in well with the bank's growth strategy and ambitions of being a fully-fledged financial institution that offers more diverse financial solutions beyond banking across the region.
“This is a key milestone for Absa, as it brings us closer to our ambition of being a one-stop shop for all financial and investment business in Kenya,'' Awori said.
He added that AAML will be at the forefront in providing investment services for customers with a diverse portfolio of local and international capital markets options.
The new offerings will be rolled out in three phases including; institutional, retail and high-net worth propositions with the institutional proposition currently live.
According to Awori, the financial institution has set up a team of experienced investment professionals and digital systems to offer fund management support through data driven insights and analytics that are crucial in managing client portfolios effectively.
This new offering comes at a time when the Kenyan asset management industry has witnessed exponential growth over the last decade.
According to PWC’s Asset Management Report 2020, the industry has registered a rise from both member contribution and good performances by an annual growth rate of 14.3 per cent.
Some of the factors contributing to the rise of the asset management sector include; technology, development of the financial services industry, urbanization, and improved infrastructure as well as a growing demographic dividend.
AAML chairman Louis Otieno reassured customers and all stakeholders of the firms commitment to growing its operations and profitability over time.
“We will continue to proactively identify and pursue areas of interest to contribute towards making our country the financial centre of choice in the continent, while continuing to be positive contributors to our economy,'' Otieno said.
