For investors in Kenya seeking low-risk investments with stable returns, the Etica Fixed Income Fund USD offers an exceptional opportunity. This fund allows you to invest in US dollars and earn returns from a diversified portfolio of government bonds, bank deposits, and other fixed-income securities. By starting with as little as USD 100, you can protect your capital while gaining exposure to global assets, with the added benefit of avoiding local currency risk. In this article, we’ll explore how the Etica Fixed Income Fund USD works, its key features, and how you can get started.
Etica Fixed Income Fund USD Overview
The Etica Fixed Income Fund USD targets investors who are looking for low-risk investments in US dollars, ensuring capital protection while earning attractive returns. The fund pools money from individual and institutional investors into a diversified range of fixed-income securities, allowing you to earn stable interest and hedge against local currency fluctuations. Unlike standard USD bank deposits, which offer relatively low returns, this fund provides a higher yield, making it a compelling choice for those looking to preserve and grow their capital.
Key Features
- Minimum Investment: Start with USD 100, making it accessible for both individual investors and larger entities.
- Minimum Top-Up: You can add to your investment with a minimum of USD 50, giving you flexibility to increase your exposure.
- Risk Profile: Low risk, focusing on investments that protect your capital while offering stable returns.
- Initial Lock-In Period: The fund has an initial 30-day lock-in period, ensuring that your funds are invested for a minimum time to achieve returns.
- Benchmark: The fund’s performance is benchmarked against the average 3-month USD deposit rate for Tier 1 banks + 0.25% p.a., ensuring competitive returns compared to conventional USD deposit rates.
- Management Fee: The fund charges a management fee of 2.0% p.a., which is competitive for a fixed-income fund of this nature.
Benefits of Etica Fixed Income Fund USD
- Capital Protection: This fund prioritizes the safety of your capital, ensuring that your investment remains protected from volatility in the markets.
- Liquidity: While the fund offers attractive returns, it also ensures that you have access to your funds whenever you need them. The 30-day lock-in period is designed to provide stability while still allowing flexibility.
- Diversification in USD: By investing in USD-denominated assets, you can diversify your portfolio and mitigate the risks associated with fluctuations in the Kenyan Shilling or other local currencies.
- CMA-Regulated: The fund is regulated by the Capital Markets Authority (CMA), offering you added peace of mind knowing that your investment is professionally managed and overseen by regulatory bodies. The fund also has trustee oversight from Co-operative Bank and a custodian partnership with Equity Bank, ensuring strong governance.
- Attractive Returns: The fund aims to outperform traditional bank deposits, offering higher returns by investing in a diversified set of fixed-income securities, including government and corporate bonds.
How to Access Etica Fixed Income Fund USD
Investors can access the Etica Fixed Income Fund USD through several convenient platforms:
- Etica Mobile App: Available for both iOS and Android, the app offers a seamless, user-friendly experience for managing your investments and tracking performance.
- Web Portal: You can also access your investment and monitor growth through the Etica Capital website at www.eticacap.com.
- Manual/Physical Application: For those who prefer to use traditional methods, Etica provides physical application forms for investors to open an account.
KYC Requirements for Etica Fixed Income Fund USD Accounts
To ensure compliance with regulatory standards, Etica requires investors to submit Know Your Customer (KYC) documents based on their account type. Here’s what you’ll need:
Individual/Joint Accounts:
- A National ID or Passport copy
- A recent coloured passport photo
- Tax certificate or equivalent
Minor Accounts:
- Parent/guardian ID and photo
- Birth certificate of the minor
- Parent/guardian tax certificate
Sole Proprietorship:
- Business registration certificate
- Proprietor ID and photo
- Tax certificate
Self-Help Groups/Welfare Societies:
- IDs and photos of each signatory
- Committee resolution approving account opening
- Approved signatories list and constitution
- Registration certificate
Partnerships:
- Partner IDs and photos
- Partnership agreement/deed
- Written approval from partners
- Registration certificate
Corporate/Institutional Accounts:
- Director IDs and photos
- Memorandum & Articles of Association
- Board resolution approving account opening
- Registration certificate & CR12 of ultimate beneficial owners
How to Apply and Fund Your Etica Fixed Income USD Account
Step 1: Open an Account
To start investing in the Etica Fixed Income Fund USD, you can register through the Etica App, the web portal, or via a manual application form. This process is straightforward and designed for ease of access.
Step 2: Submit KYC Documents
After registration, submit the required KYC documents based on your account type. This ensures regulatory compliance and allows Etica to manage your investments properly.
Step 3: Fund Your Account
Once your account is set up, you can fund it via multiple payment options:
- Bank Transfer (USD Account):
- Account Name: Etica Unit Trust Collection Account – USD
- Account Number: 0180285106666 (USD)
- Bank: Equity Bank Kenya, Community Supreme Branch, Code 018
- M-PESA:
- Paybill Number: 4096483
- Account Number: Your member number
- Pesalink:
- Deposit USD via your bank app or USSD; funds will reflect instantly in your Etica account.
- Equity Bank Channels:
- Use *USSD 247# or visit Equity Bank branches using Biller Number 919292.
Once funded, your investment will be visible immediately in the Etica App and the web portal.
Contact Details
- Phone: +254 769 999 666 / +254 111 055 650
- Email: [email protected]
- Office: Allamano Centre, Consolata Shrine, Westlands, Nairobi, Kenya
- Website: www.eticacap.com
Key Takeaways
- Start with USD 100: The Etica Fixed Income Fund USD is designed for investors who want to start with USD 100 and benefit from low-risk, USD-denominated fixed-income investments.
- Low-Risk, Capital-Protected Investments: This fund is designed to protect your capital while generating stable, competitive returns.
- Liquidity and Easy Access: Investors can access their funds at any time and use M-PESA, bank transfers, and Pesalink to fund their account and withdraw money.
- Regulated and Secure: The fund is regulated by the Capital Markets Authority (CMA), with trustee and custodian oversight, ensuring your investment is secure and managed professionally.
The Etica Fixed Income Fund USD offers an excellent way for investors to earn stable returns in US dollars while protecting their capital. Whether you are a seasoned investor or just starting, this fund provides a simple, low-risk way to diversify your portfolio and achieve reliable growth.
