GRACEKENNEDY is set to launch a new subsidiary, GK Mutual Funds, in the second quarter of this year after receiving approval from the Financial Services Commission (FSC) to enter that market.

The conglomerate, which will celebrate 100 years on Monday, said the FSC gave it approval to enter the Collective Investment Schemes (CIS) market.

Don Wehby, group CEO of GraceKennedy, said the move “is yet another glimpse into the bright future of our group”.

The announcement comes months after rife speculation that GraceKennedy was seeking to partner with Trinidad-based Unit Trust Corporation (UTC) on its entry into Jamaica’s mutual funds market.

GraceKennedy in a release said when it launches its mutual funds, it will offer three products initially: the GK US Dollar Income Fund; the GK Jamaican Dollar Money Market Fund; and the GK Jamaican Dollar Growth & Income Fund. The funds have been designed to provide a suite of diversified investment solutions to investors with varying risk appetites. When launched, qualified investors will be able to subscribe for shares in a fund or funds which best meet their investment objectives.

Steven Whittingham, chief operating officer of the GraceKennedy Financial Group and the head of GK’s Investment and Insurance divisions, explained that “the initial funds will diversify the sphere of investment opportunities for our clients and expand GK Capital’s product reach”.

He acknowledged that “while we are entering a competitive CIS market, the design of the funds and the planned innovative approaches to distribution will deliver a unique customer experience and drive client acquisition and the accumulation of assets under management”.