Stanbic Bank Kenya has made a significant stride in the financial sector by launching its Asset Management business, introducing two new investment products: the Stanbic Money Market Fund (KES) and the Stanbic Fixed Income Fund (USD). These funds are designed to provide Kenyans with accessible, low-risk investment opportunities, offering the potential for attractive returns while diversifying their portfolios.
Introducing the New Investment Funds
Stanbic Money Market Fund (KES)
Denominated in Kenyan Shillings, the Stanbic Money Market Fund offers an appealing annualized yield of 15.12%. With a minimum investment requirement of KES 1,000, this fund is tailored for a wide range of investors, from individuals starting their investment journey to institutions seeking stable returns. The fund’s high liquidity and low-risk profile make it an attractive option for those looking to safeguard and grow their wealth.
Stanbic Fixed Income Fund (USD)
For investors interested in US Dollar-denominated assets, the Stanbic Fixed Income Fund provides a 5.56% annualized yield. The minimum investment amount is USD 100, making it accessible to a broad audience. This fund is ideal for investors looking to hedge against local currency fluctuations and diversify their portfolios with foreign currency investments.
Both funds are managed by SBG Securities Limited, a subsidiary of Stanbic Holdings Plc, ensuring that they are overseen by experienced professionals in the investment management sector.
Stanbic strategic expansion into asset management
The launch of these funds marks Stanbic Bank Kenya’s entry into the asset management arena, through its newly established Insurance and Asset Management Unit. This expansion is part of Stanbic’s broader strategy to offer comprehensive financial services, making it a one-stop hub for all client needs. The bank’s approach is to provide tailored investment solutions that meet the specific financial goals of its clients, paving the way for the introduction of more investment products in the future.
Dr. Joshua Oigara, Chief Executive of Stanbic Bank Kenya and South Sudan, emphasized the importance of mobilizing domestic savings and investments. By strengthening capital markets and offering accessible, user-friendly investment products, Stanbic Bank aims to create a conducive environment for both retail and institutional investors to grow their wealth.
Holistic Financial Solutions for Investors
Stanbic Bank’s foray into asset management is aligned with its commitment to providing a full spectrum of financial services. The newly launched funds are designed to cater to investors seeking long-term growth with minimal risk. The comprehensive management of these funds, overseen by Anjali Harkoo, Head of Insurance and Asset Management at Stanbic Bank Kenya, ensures that investors benefit from expert management and diversification across various asset classes.
Security, Stability, and Regulatory Assurance
These new funds adhere to stringent investment guidelines, being licensed and regulated by the Capital Markets Authority of Kenya. This regulatory oversight guarantees that the funds operate within a secure and transparent framework, providing peace of mind to investors.
Stanbic Bank leverages its extensive asset management experience, applying best practices and robust internal capabilities to deliver value to its clients. The emphasis on regulatory compliance and experienced management ensures that the funds offer a stable and secure investment option.
Understanding the Costs: Management Fees
The Stanbic Money Market Fund (KES) charges up to 2% in management fees, while the Stanbic Fixed Income Fund (USD) has a management fee of up to 1%. These fees are deducted from the returns generated by the funds and cover the costs of professional management, including research, trading, and administration.
One of the key features of these funds is their accessibility. Available to both existing and new clients, these funds cater to a wide range of investors, from individuals to institutions. This accessibility ensures that everyone interested in growing their wealth can easily take advantage of these new opportunities.
Conclusion:
Stanbic Bank Kenya’s launch of the Stanbic Money Market Fund (KES) and Stanbic Fixed Income Fund (USD) marks a pivotal moment in the Kenyan financial sector. These funds offer investors a secure and profitable way to diversify their portfolios with low-risk, high-liquidity options. Managed by SBG Securities Limited and backed by stringent regulatory oversight, these funds are set to make a significant impact on the investment landscape in Kenya.
As Stanbic Bank continues to expand its range of financial services, its entry into asset management represents a strategic move towards providing holistic financial solutions. These new funds offer a reliable pathway for both novice and seasoned investors to achieve their financial goals, aligning perfectly with Stanbic Bank’s mission to drive economic growth through meaningful investment opportunities.
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With so many money market funds coming up and all banks starting their own, what implications does this have on the financial marker. I know they are low-risk but is it sustainable?
I think having many options is good. They will compete and get better. Win for us consumers.