Stanbic Bank Unveils New Investment Funds to Enhance Portfolio Growth

Stanbic Bank Kenya has announced the launch of two new investment funds: the Stanbic Money Market Fund (KES) and the Stanbic Fixed Income Fund (USD). This development follows the Capital Markets Authority’s approval earlier this year. The new funds will be overseen by SBG Securities Limited, a subsidiary of Stanbic Holdings Plc.

This launch signifies Stanbic Bank’s formal entry into asset management, facilitated through its newly formed Insurance and Asset Management Unit. The bank plans to expand its range of investment products in the near future as part of its strategy to deliver comprehensive financial solutions. The goal is to create a one-stop financial services hub that meets clients’ diverse needs with a range of tailored products and services.

The new funds are designed for investors aiming to diversify their portfolios with minimal risk and high liquidity. The minimum investment for the Money Market Fund is KES 1,000, while the Fixed Income Fund requires USD 100. Both funds will be managed by a team of experienced investment professionals.

Dr. Joshua Oigara, Stanbic Bank’s Chief Executive for Kenya and South Sudan, emphasized the importance of mobilizing domestic savings and investments. He noted that strengthening the capital markets and developing investment products that cater to local needs are crucial for driving growth. “We need to create accessible entry points for investors by offering affordable and user-friendly solutions,” he said.

Dr. Oigara highlighted that the Asset Management Unit is strategically positioned to offer investment solutions that foster growth for both retail and institutional investors. Anjali Harkoo, Head of Insurance and Asset Management at Stanbic Bank Kenya, added, “We established the Insurance and Asset Management unit to provide a complete suite of banking and non-banking solutions to our clients.”

Harkoo also emphasized the advantages of investing in Stanbic’s Unit Trusts, including expert management and diversification across various asset classes. The funds are licensed and regulated by the Capital Markets Authority, adhering to rigorous investment guidelines to ensure stability and security for investors.

The new funds offer competitive returns, with an annualized yield of 15.12 percent for the Money Market Fund (KES) and 5.56 percent for the Fixed Income Fund (USD). The Money Market Fund charges up to 2 percent in management fees, while the Fixed Income Fund has a management fee of up to 1 percent.

Both existing and new Stanbic Bank clients, including individual and institutional investors, will have access to these funds, reflecting the bank’s commitment to broadening investment opportunities for its clientele.