Safaricom’s Mali unit trust has seen its asset base climb to the Sh1.4 billion mark.
The unit trust’s asset base has been growing steadily since its launch in 2016.
Overview
In the evolving landscape of investment avenues, Safaricom has established its presence with the Mali unit trust. This investment vehicle has seen considerable growth.
By December 2023, its assets had reached a substantial figure of Sh1.4 billion. Mali, a product of collaboration with Genghis Capital Limited, stands as a robust option integrated with the M-Pesa platform, catering to both conventional and sophisticated investors.
Through the Mali Money Market Fund, Genghis Capital’s expertise has led to considerable income generation. A notable portion of this income comes from interest income. This particular fund has also outpaced Gencap Hela Imara Fund in profitability, showcasing its potential in the unit trust market.
The fund composition of Mali is diverse, with 61 percent of its assets allocated in fixed deposits. The remainder is a mix of government securities, deposits, and corporate bonds.
This variety offers a balanced approach to investment, aiming to cater to investors’ different risk tolerances.
Joining this fund is accessible – you can start investing with a minimum of just Sh100 and enjoy daily interest rate calculations on your investments.
The fund’s ease of access is further enhanced for all mobile users, whether through a feature phone or a smartphone, via USSD or the M-Pesa app.
While your investment grows, withdrawals and deposits to your Mali account are hassle-free and without charge.
Be aware, however, that a minimum withdrawal amount is set at Sh10. Also, the returns you reap from the Mali account will incur a 15 percent withholding tax, a common practice for unit trust earnings.
SBM Bank Kenya plays a pivotal role as the custodian, ensuring the security and proper management of the fund’s assets.
The operational backbone of the fund is supported by fund management fees, with Genghis Capital managing the administrative aspects with precision. Despite this, the specific details of their revenue-sharing with Safaricom remain undisclosed.
The Mali unit trust is part of a larger collective investment scheme ecosystem regulated by the Capital Markets Authority (CMA).
With about 36 entities managing 135 distinct funds, the ecosystem had assets under management worth KES 215 billion as of 2023.
This ecosystem not only offers diversity in investment options but also brings stringent regulation, ensuring investor confidence and fund integrity.
Remember, every investment carries its own set of charges, and the Mali fund is no different.
The fund incurs custodian, trustee, and marketing charges within its operating expenses, which were reported to be Sh28.3 million in 2023.
