Stanbic Bank Kenya has launched a shilling and dollar denominated money market funds that will see investors earn up to 15.12 per cent per annum.
The returns are likely to be double what is offered on fixed savings, considering that banks are paying an average of 7.5 per cent and even slightly higher what the government pays on bonds and Treasury Bills.
The Capital Markets Authority (CMA) approved the Stanbic Money Market Fund (KES) and the Stanbic Fixed Income Fund (USD) early this year.
The funds will be managed by SBG Securities Limited, a subsidiary of Stanbic Holdings Plc.
With minimum investments of Sh1, 000 and $100, the funds are designed for investors seeking to diversify their portfolios and achieve long-term growth with minimal risk and high liquidity.
A team of seasoned investment professionals will manage clients’ investments.
The funds currently provide investors with an annualised yield of 15.12% for the Money Market Fund (KES) and 5.56 per cent for the Fixed Income Fund (USD).
The Money Market Fund charges up to two per cent in management fees, while the Fixed Income Fund charges up to one per cent.
This means, an investor who saves Sh1, 000 will earn an interest of Sh150 in a year while those who invest $100 will earn an extra $5.5.
This launch marks Stanbic Bank’s official entry into asset management through its newly established Insurance and Asset Management Unit, with plans to introduce more investment products in the future.
Speaking during the launch, Stanbic Bank Kenya and South Sudan CEO Joshua Oigara said there is need to mobilise domestic savings and investments by strengthening capital markets and developing investment products that cater to people’s needs.
"We need to create accessible entry points for investors, offering affordable and user-friendly solutions that lower barriers to investment," Oigara said.
"Our Asset Management unit is strategically positioned to deliver investment solutions that drive growth for both retail and institutional investors.”
He said that the bank strategically set up a fourth business unit called Insurance and Asset Management to offer a holistic suite of banking and non-banking solutions to clients.
According to the bank, investing in Stanbic's Unit Trusts offers vast advantages, including expert management and diversification across various asset classes.
“Licensed and regulated by the Capital Markets Authority, these funds adhere to stringent investment guidelines, ensuring stability and security for investors," Anjali Harkoo, head Insurance and Asset Management, Stanbic Bank Kenya said.
"Leveraging our extensive asset management experience across our Group network, we will implement best investment practices and utilise our robust internal capabilities to deliver value to our clients.”
The funds will be available to both existing and new Stanbic Bank clients, catering to both individual and institutional investors.
