Stanbic Bank Kenya has finally flexed its muscles in the asset management universe with the unveiling of its shilling and dollar-denominated money market funds. These investment products boast an alluring return profile of up to 15.12% per annum, thus making them one of the most handsome options against the conventional fixed savings and government securities.
Better than Traditional Savings
Though returns differ depending on prevailing market conditions, the newly launched Stanbic Money Market Fund-KES and Stanbic Fixed Income Fund-USD potentially double most earnings from fixed savings accounts. With most banks offering around 7.5% on fixed deposits, with government bonds and Treasury Bills offering slightly better yields, Stanbic's funds are an arguably better deal for investors.
Backed by Regulatory Approval
The funds, which have sealed Stanbic's foray into the asset management business, were approved by CMA in January this year. The funds will be managed by SBG Securities Limited, a subsidiary of Stanbic Holdings Plc, and shall suit investors who seek portfolio diversification and long-term growth coupled with high liquidity and relatively minimal risk.
Investing Opportunities Within Easy Reach
These include but are not limited to their friendliness to investors. For as low as Ksh1,000 in the case of the Money Market Fund and $100 for the Fixed Income Fund, these products will target both the small-scale and large-scale investor. The funds appeal to an investor targeting reasonable, consistent returns with minimal or no entry barriers that are commonly characteristic of investment products.
Attractive Yields and Competitive Fees
The Stanbic Money Market Fund yields 15.12% p.a., while the Fixed Income Fund yields 5.56% per annum. Returns are managed by a seasoned team of investment professionals who are dedicated to maximizing client investments.
On management fees, Money Market Fund management fees are up to 2% while Fixed Income is up to 1%. These put into reality returns for investors, and an investor who put Ksh1,000 in a year earns interest of Ksh150 or an additional $5.50 on an investment of $100.
A Strategic Expansion into Asset Management
This marked Stanbic Bank's official foray into asset management under its newly established Insurance and Asset Management Unit. More investment products are in the pipeline to be rolled out as the bank seeks to deepen its inroads into financial services.
Stanbic Bank Kenya and South Sudan chief executive Joshua Oigara said there was a need to enhance domestic savings and investments through the creation of accessible and user-friendly investment products. "We have to create access points for investors which provide affordable and user-friendly solutions that reduce barriers to investments," said Oigara.
Holistic Approach to Banking
Insurance and Asset Management is one unit being established that will strategically chart a change for the bank in offering a comprehensive array of both banking and nonbanking solutions, which aim to satisfy all diverse needs of retail to institutional investors.
A Secure and Managed Investment Option
Stanbic's Unit Trusts are licensed and regulated by the Capital Markets Authority, hence giving investors expertise in management besides diversification into different asset classes. Anjali Harkoo, the Head of Insurance and Asset Management at Stanbic Bank Kenya, reassured that the funds were managed with strict investment guidelines to ensure stability and security for investors.
This is, however, just the beginning, with Stanbic Bank looking to introduce other innovative investment products in the near future. The funds will be available to both existing and new clients alike, thus availing opportunities for both individual and institutional investors to benefit from these expertly managed funds by Stanbic.