In a significant move to expand its financial services, Stanbic Bank Kenya has launched two new investment funds: the Stanbic Money Market Fund (KES) and the Stanbic Fixed Income Fund (USD). Approved by the Capital Markets Authority earlier this year, these funds will be managed by SBG Securities Limited, a subsidiary of Stanbic Holdings Plc.
Stanbic Bank’s Strategic Entry into Asset Management
This launch signals Stanbic Bank’s official entry into the asset management sector, marking the beginning of a new chapter for the financial giant. The bank has recently established an Insurance and Asset Management Unit, which will spearhead the development and introduction of various investment products aimed at catering to diverse client needs. This initiative is part of Stanbic’s broader strategy to create a comprehensive financial services hub that offers seamless, client-centric solutions.
Stanbic Bank Chief Executive for Kenya and South Sudan, Dr. Joshua Oigara, highlighted the importance of this new venture in driving economic growth. “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. We need to create accessible entry points for investors, offering affordable and user-friendly solutions that lower barriers to investment,” Oigara said.
Accessible Investment Opportunities with Competitive Returns
Designed to attract both retail and institutional investors, the Stanbic Money Market Fund and Fixed Income Fund offer competitive returns with low entry barriers. Investors can start with as little as KES 1,000 for the Money Market Fund or USD 100 for the Fixed Income Fund. These funds are ideal for those looking to diversify their portfolios while maintaining high liquidity and minimal risk.
The funds offer attractive annualized yields, with the Money Market Fund providing a 15.12% return and the Fixed Income Fund offering a 5.56% return. The management fees are capped at 2% for the Money Market Fund and 1% for the Fixed Income Fund, making them competitive options for both new and experienced investors.
Leveraging Expertise for Secure Investments
Anjali Harkoo, Head of Insurance and Asset Management at Stanbic Bank Kenya, emphasized the bank’s commitment to offering secure and well-managed investment options. “Licensed and regulated by the Capital Markets Authority, these funds adhere to stringent investment guidelines, ensuring stability and security for investors. Leveraging our extensive asset management experience across our Group network, we will implement best investment practices and utilize our robust internal capabilities to deliver value to our clients,” Harkoo stated.
Harkoo also noted that the newly established Insurance and Asset Management Unit is a strategic addition to Stanbic’s existing offerings, ensuring that clients receive a holistic suite of banking and non-banking solutions. “Investing in Stanbic’s Unit Trusts offers vast advantages, including expert management and diversification across various asset classes,” she added.
A Future of Expanding Investment Solutions
The introduction of these funds is just the beginning of Stanbic Bank’s plans in the asset management space. The bank is set to roll out more investment products in the future, further solidifying its position as a one-stop financial services provider in Kenya.
Both existing and new clients of Stanbic Bank will have access to these funds, which are designed to cater to a broad range of investors—from individual savers looking to grow their wealth to institutional investors seeking stable returns.
Driving Economic Growth Through Investment
By offering these new investment vehicles, Stanbic Bank Kenya aims to play a pivotal role in mobilizing domestic savings and encouraging investment in the capital markets. This aligns with the bank’s purpose of driving economic growth by providing meaningful financial solutions that meet the needs of its clients.
As Kenya continues to develop its financial markets, initiatives like Stanbic Bank’s new funds will be crucial in offering accessible and secure investment opportunities to a broader segment of the population, ultimately contributing to the country’s economic resilience and growth.
For more information on how to invest in the Stanbic Money Market Fund and Fixed Income Fund, potential investors can visit Stanbic Bank’s official website or contact their nearest branch.
