The Jubilee Money Market Fund (USD) is a low-risk investment option for investors seeking stable US Dollar-denominated returns. The fund invests in secure short-term fixed and floating rate debt securities issued by sovereigns and corporates in Kenya and offshore, offering a reliable way to preserve capital while benefiting from competitive interest rates.
Jubilee Money Market Fund (USD) Overview
The Jubilee Money Market Fund (USD) is designed for risk-averse investors who want to hedge against local currency fluctuations and earn higher returns than standard USD bank deposits.
Key Features:
- Currency: US Dollar (USD)
- Investment Type: Short-term, low-risk fixed and floating rate debt securities
- Minimum Investment: Check with Jubilee online portal for USD investment requirements
- Liquidity: Highly liquid with easy fund access
- Tax Status: Fund is tax-exempt; distributions attract 15% withholding tax
- Risk Profile: Low-risk, capital preservation focused
Benefits of Jubilee Money Market Fund USD:
- Competitive Returns: Typically higher than USD bank deposits
- Diversification: Reduce exposure to Kenyan Shilling and other local currencies
- Liquidity: Easy withdrawal of funds whenever needed
- Stability and Safety: Regulated short-maturity, low-risk investments make the fund less volatile
- Tax-Exempt Fund: Protects income within the fund from taxation, only investor distributions are taxed
Who Should Invest?
The fund is suitable for:
- Investors seeking US Dollar-denominated near cash interest-bearing assets to hedge against currency risk
- Individuals or businesses wanting moderate short- to medium-term returns with capital preservation and liquidity
- Investors looking to reduce exposure to high-risk investments or market volatility
- Those aiming to take advantage of higher US Dollar interest rates compared to local currency deposits
How the Fund Works
The Jubilee Money Market Fund (USD) pools investors’ money into a diversified portfolio of secure short-term debt instruments, including:
- Sovereign USD-denominated securities
- Corporate USD-denominated debt in Kenya or offshore
- Fixed and floating rate instruments with short maturities
Returns are earned on a daily basis and provide investors with predictable, stable income. Capital preservation is prioritized, and fund investments are managed to minimize volatility.
Tax and Fees
- Fund-Level Tax: The fund is registered as tax-exempt on income and capital gains.
- Investor Tax: Payouts to investors are subject to 15% withholding tax.
- Fees: Management fees and the Total Expense Ratio (TER) are provided in the fund factsheet.
How to Invest in Jubilee Money Market Fund (USD)
- Open an Account: Visit the Jubilee online portal and provide your personal and KYC documents.
- Fund Your Account: Make your investment via bank transfer or other approved channels.
- Monitor and Manage: Track your account and accrued returns online via the portal.
Key Takeaways
- Jubilee MMF (USD) is ideal for investors seeking low-risk, US Dollar-denominated returns
- Competitive interest rates and liquidity make it a flexible short-term investment
- Tax-exempt at the fund level; only distributions are taxed
- Helps diversify away from local currency exposure and hedge against volatility
