Stanbic Bank Kenya is breaking down investment barriers with two new money market funds, offering annual returns of up to 15.12 percent and entry points as low as Sh1,000 or $100, catering to small-scale investors.
The Stanbic Money Market Fund, denominated in Kenyan shillings, boasts an impressive 15.12 percent annual return. Its US Dollar-denominated counterpart, the Stanbic Fixed Income Fund, offers a 5.56 percent yearly yield. These funds are part of Stanbic’s strategic move to expand its services beyond traditional banking.
Joshua Oigara, Stanbic Bank Chief Executive for Kenya and South Sudan, emphasized the broader economic impact of this initiative. “To drive growth, we must mobilize domestic savings and investments by strengthening our capital markets and developing investment products that cater to our people’s needs,” he stated. Oigara added, “We need to create accessible entry points for investors, offering affordable and user-friendly solutions that lower barriers to investment.”
The funds are managed by SBG Securities, an investment bank, and are open to both existing and new customers. This launch is part of Stanbic’s broader strategy, as explained by Anjali Harkoo, Stanbic Bank Kenya Head of Insurance and Asset Management: “We strategically set up a fourth business unit called Insurance and Asset Management to ensure that we were offering a holistic suite of Banking and non-Banking solutions to our clients.”
Harkoo highlighted the benefits of investing in Stanbic’s Unit Trusts, including expert management and diversification across various asset classes. She also noted that these funds are licensed and regulated by the Capital Markets Authority, adhering to stringent investment guidelines to ensure stability and security for investors.
While the funds offer attractive returns, investors should be aware of the management fees: two percent for the Money Market Fund and one percent for the Fixed Income Fund. Despite these fees, the low entry points and potential returns make these funds an appealing option for Kenyans looking to start their investment journey or diversify their portfolios.
This initiative aligns with Stanbic Bank’s goal to democratize investment opportunities, potentially opening up the world of high-yield investments to a broader range of Kenyans who previously may have found such opportunities out of reach due to high minimum investment requirements.
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