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Topic: Old Mutual Equity fund - Gal  [786 views | 17 replies]
Tuesday, March 11, 2008 20:31

I want to invest in the old Mutual Equity fund. How does it work? And what do they invest the money in? Do they do real estate under the Equity fund? Thank You

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Suntra the way to go! [bull market]
Thursday, March 13, 2008 08:18

Ladies and Gentlemen,
Suntra are the newest company to have Unit Trusts and they have come up with a very innovative offer.  Instead of charging clients a sales commission upfront like all the others in the market,they are offering discount to investors based on how long the investor stays with the investment.  How would you like to have more of your principal invested and only pay the sales commission when you redeem your unit?
Their minimum is also lower: Ksh 100,000.00
They also have direct access to the stock market unlike other fund managers.
Unit Trusts money is not held by the fund manager (as mentioned earlier)it is held by a Custodian (independent of the fund manager)
They started their Unit Trusts when the prices were relatively low so you can expect their funds to perform well.
what do you guys think about Suntra,do you think they will be good fund managers?  I have been using them to buy shares and I joined their Equity Fundmainly because I didnt have to pay the sales commission upfront.

Why allow the likes of BAAM,Zimele,and others charge you an upfront fee?  With the Suntra deal,my purchase of unit trusts ends up being cheaper than actually buying stocks directly.
Baam [knowstocks]
Wednesday, March 12, 2008 21:06


I took time and contacted Old mutual,Baam,African alliance and Zimele.  They all got back to me (except Zimele).  I studied what they had to offer and I settled for the Money Market fund with Baam.  The returns are as indicated by smano in an earlier post on this thread.  I only put the money there because it was part of my savings which I did not want to risk in the NSE,and also I can get quick access whenever I need it.

Also,they send me monthly statements telling me how much I have made every month; this is reinvested in the next month (optional).

For real numbers (money market fund): suppose you invest 500k and the interest on a given day is 7% p.a,your interest for the day would be (7%*500k)/365. Daily intests accumulate through the month and then they give you a statment.

Hope this helps.

He who watches over me neither sleeps nor slumbers! & I shall dwell in His house foever.
More on Unit Trusts [on the move]
Wednesday, March 12, 2008 20:36

Hello there,

I help individuals analyze and decide on the suitability of investing through the asset managers.


It’s true what various contributors have posted in this thread and I am impressed by how informed Kenyans are.


Please access under downloadable tab you will find a full article on Unit Trusts which is in PDF. Feel free to download and share.


You can also send me an email for details on the fine print.


Concept Advisory Services.

Funds [Kerabu901]
Wednesday, March 12, 2008 20:05

The way these funds work means that you put your money into their management,they aggregate it according to their strategy and typically invest in whichever shares that have a good return. Fund managers are not allowed to lose investors money and due to the volatility of the NSE coupled with the liquidity of the funds,they are good in the short run (say for example you may not afford to by 50,000 EABL but the funds can afford it as they have aggregated capital. Their main advantage is pooling of capital. However in the long run as the Kenyan market becomes mature,such high rises and falls in the share prices are likely to be limited. In such cases,given the fund managers ideally should not lose investor funds,means they will likely invest in risk free low return securities hence giving you lower returns. 

Before you join them,it is important to know your options. If you desire cash flow at the third year,then this is the safe way. If you desire major gains and you have sufficient funds,then it may not be so advisable i think. But if you are short of funds,then this may the only  way forward.

You can try offshore too. The funds are slightly different. You buy a part of the fund (shares) which is redeemable on each preset settlement date (unlike old mutual where if you draw before a certain time you get little or nothing).On each of this days,the net asset value is computed and multiplied by the number of shares you have in the fund. This is your amount. You only deduct from the original investment and see your gain.

Old Mutual Equity fund [mtaalam]
Wednesday, March 12, 2008 17:36

Can someone share some real experiences? I've never heard or read something like "I put x amount x years ago at OM or BAAM and made xxx amount"

The best time to plant a tree is twenty years ago. The second best time is now.
Thanks @smano [mautidavis]
Wednesday, March 12, 2008 17:28

Smano,thanks for such a comprehensive response. It greatly helps someone understand unit trusts.

Thanks once again and God bless.
Old Mutual Equity fund [smano]
Wednesday, March 12, 2008 16:11


Hi. I’m not from Old Mutual but work with a competing fund management co. Equity funds invest primarily in shares,mostly within the NSE in counters the fund manager deems as giving value,while some diversify both regionally and offshore. One buys units into the fund at the prevailing offer/sell price & redeems them preferably after a period of time  (ideally 5 years but anything over 2 years should show reasonable returns unless the market has taken a downturn as it did during the recent crisis) at a bid/buy price. The two prices appear from Tue to Sat in the dailies and move up & down with the underlying investment,namely shares. The difference between the two represents the initial fee of the particular fund.  I’m not aware of any equity fund investing in real estate at the moment but when they start,they’ll probably do so through REITS (real estate investment trusts) as opposed to directly in assets. Contact me on [email protected] if you need further info as you look around.


If you are investing for 3 years,you are doing yourself a disservice being in a fixed deposit since you’re just preserving your capital but not beating the always double digit inflation in Kenya,you are much better off in an equity or balanced fund which invests in a mixture of shares and t-bills and bonds. In fact for short term investments of less than a year,a money market fund is a better bet as you achieve the same results as a fixed deposit or t-bill while being exempt from tax,getting a return of between 7-9% p.a. which is calculated on a daily basis while still maintaining liquidity.


As an investor in a collective investment scheme,one is not consulted on what the equity fund will invest in but you’ll be shown. Discretionary funds are where the client has a say in what the fund will invest in,in consultation with the fund manager. The funds required for this are obviously much higher than the minimums unit trusts quote.

Since the fund has an initial fee,of course the moment you get in to it you immediately get into loss territory. That’s why the fund is recommended for long term because over time,shares do give good inflation beating returns. If you make a full withdrawal when the fund is in loss making territory is only when you actualize the loss,much like selling shares at a lower price than you bought them – it’s that simple. But I’m sure you do not buy a share with that in mind. The good thing is that you can exit the fund whenever you please.



I couldn’t put it better… The equity fund is really a superior savings a/c., only that your investment fluctuates…



No fund manager worth their salt have been using any of the brokers whom have gone down in the past or have been denied renewal of licences following the recent Nyaga debacle. Unit trusts are the most secure sort of investment because the investor funds have a custodian and a trustee with each fund having a trust deed to that effect. So as much as CMA is the regulator,the structure of unit trusts ensures that each fund is an entity on its own,separate from the fund manager and other parties.

Hope that helps. Happy investing


Which Brokers [Chaka]
Wednesday, March 12, 2008 15:53

Does anyone here know which broker(s) OMAM and BAAM are using and have used for their equiy investments?
Returns [dreamweaver]
Wednesday, March 12, 2008 15:32

A few things to consider

  1. Mutual funds are a way of investing in on the stock market and can thus make you rich,or you can lose money as wel. it all dpends on when you put the money in. and when you decide to exit.
  2. Investing directly on the stock market by yourself,through a broker means that you make a larger profit margin and also a larger loss,and you have to watch the market and watch your stock broker very closely.
  3. Mutual funds provide a lower level of risk depending on the class you pick,equities,balanced,money market. But with the lower risk you also make less money. But then again is this a bad thing considering how volatile the NSE is and how dishonest the stock brokers are.
  4. Overall if you invest for the longterm and also pick the right mutual fund,you will make alot more than a fixed deposit account,beat inflation and still sleep a little better at night.
  5. I have been with BAAM for three years and I am not complaining.
Old Mutual Equity fund [Seles83]
Wednesday, March 12, 2008 13:44

Can mutual funds make you rich?

Failure inspires are made not born
OMAM Appoints CEO [Chaka]
Wednesday, March 12, 2008 12:55

I have seen in today's Daily Nation that Mr.Dominic Kiarie formerly of BAAM has been appointed CEO of OMAM taking over from Stewart Henderson.Why did Stewart leave and what will he do at OMAM that he was unable to do at BAAM or is it a game of musical chairs?
Old Mutual Equity fund [cindano]
Wednesday, March 12, 2008 11:05


kindly ask all the questions an investor would....


1) whenever the fund invests,would they seek your opinion as to the ventures they want to plough your money to?

2) are there instances where the fund goes into loss territory?

3) and what happens then?

Kila kitu kwa bidii
contact [jammo]
Wednesday, March 12, 2008 10:53

Call Byron Otieno on 0721867756. He'll sort you out.

Old Mutual Equity fund [maasai]
Wednesday, March 12, 2008 09:16

Equity fund usually outperforme fixed deposit a/c especially wen the stock market is doing well

A penny SAVED is a penny wasted if not INVESTED.
Old Mutual Equity fund [achesa]
Wednesday, March 12, 2008 09:08

the minimum is now Kshs 200,000/=
Old Mutual Equity fund [Richie]
Wednesday, March 12, 2008 08:01

how is the perfomance of this equity fund compared to putting your money in a fixed deposit A/C lets say for a period of 3yrs.

I am actully worried of their initial fees which may not be applicable to a fixed account.

Can you gain more than in a fixed account over a 3year period?

old mutual equity fund [eliamnjiru]
Wednesday, March 12, 2008 03:25

just as the name states..they research companies and buy shares on your behalf,then post dividends or any gains on your fund after deducting mgt costs. the minimum investment required back in 2005 was 500k.

good luck

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