How Kgori Capital’s Enhanced Cash Fund works
In this interview with Staff Writer KEABETSWE NEWEL, Kgori Capital’s Portfolio Manager for Domestic Fixed Income Strategies, Kwabena Antwi, speaks about the company’s iconic money market Fund suited for short-term, low risk investments. Antwi is also an Investment Analyst for domestic equities and fixed income.
Q: Would you briefly share with us your biography?
A: I am an investment professional with 11 years industry experience. I joined Kgori Capital in 2015. My responsibilities at Kgori Capital include portfolio management of domestic fixed income strategies and investment analysis of domestic equities and fixed income. I hold an undergraduate degree in Accounting and an MBA from Manchester Business School. Moreover, my professional qualifications include being a CFA Charterholder and a Fellow of the Association of Chartered Certified Accountants.
Q: What is Kgori Capital Enhanced Cash Fund and how does it work?
A: The Kgori Capital Enhanced Cash Fund or KCECF is a money market fund suited for companies or individuals looking for a short-to-medium term, low risk investment. The fund has a proven track record of over six years for delivering competitive returns. Moreover, KCECF provides market beating returns by investing in high quality, structurally simple, and liquid securities.
Q: What can you tell us about the safety of the Kgori Capital Enhanced Cash Fund?
A: The fund is licensed and regulated by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) who monitor compliance and contractual obligations between investors and their clients as well as other legal and regulatory requirements.
KCECF is a low-risk investment. The fund is geared to the most conservative of investors with a primary objective of capital preservation and counter-party diversification whilst achieving returns in excess of bank deposits over time. In other words, the fund targets capital preservation with a high degree of liquidity.
Q: Who is the typical investor in your fund?
A: All individuals and corporate entities can invest in the fund. The minimum investment is a lump sum of P10,000 or a monthly investment of P1,000.
The fund offers a low-priced solution to large and small corporates for cash management. For individuals, the fund is an effective solution for education savings, retirement savings, emergency funds, metshelo and severances and gratuities.
Q: What are the liquidity allowances and redemption gates for the fund?
A: The fund has a high level of liquidity. Disinvestment instructions received before 11am on a particular day will be paid out within 48 hours.
Q: What does your money market fund invest in?
A: The fund typically invests in domestic treasury securities, commercial paper from high quality corporates, commercial bank fixed deposits, short-term corporate debt, and variable and floating rate debt securities.
Q: What is the impact of the recent drop-in policy interest rates and the current economic climate with respect to money market funds?
A: Money market funds and KCECF in particular have held up very well despite the drop in policy rates. There is no material difference between the yield offered by KCECF before and after the 100bps policy rate cuts instituted in 2020 by the Bank of Botswana.
Q: What differentiates your fund from other similar investments?
A: The fund invests in a variety of short-dated instruments from highly rated institutions. Therefore, investors do not need to ‘shop around’ for the best rates at reputable institutions.
The fund is also managed by a stable, highly qualified, and experienced team of Batswana investment professionals. This team has a proven record of excelling at securing attractive short-term fixed income opportunities with blue-chip corporates and KCECF’s yield is consistently one of the highest and most stable in the market.
As Kgori Capital, we remain dedicated to offering an industry leading client service experience as well as convenience to our clients. In this regard, our clients have access to Kgori Secure Services, an online portal to view their full portfolio of unit trust investments at any time, including extracting statements and generating transaction instructions.
Q: Any information that you may have left out?
A: Kgori Capital is a proud Botswana business dedicated to her growth and that of Batswana. We remain committed to find purposeful solutions and investments dedicated to improving the lives of Batswana for the better.