Stanbic Bank Kenya has launched two new investment products, marking a significant return to the asset management sector after its exit about four years ago.
The bank introduced the Stanbic Money Market Fund (KES) and the Stanbic Fixed Income Fund (USD), aiming to make investing more accessible for Kenyans by lowering entry barriers.
The move comes after the Capital Markets Authority approved the funds earlier this year, and they will be managed by SBG Securities Limited, a subsidiary of Stanbic Holdings Plc.
With minimum investments set at KES 1,000 for the Money Market Fund and USD 100 for the Fixed Income Fund, Stanbic Bank aims to attract both retail and institutional investors seeking low-risk opportunities to grow their wealth. The Money Market Fund offers an annualized yield of 15.12%, while the Fixed Income Fund provides a 5.56% annualized yield.
“We are excited to launch these funds, which will help us mobilize domestic savings and investments by strengthening our capital markets,” said Dr. Joshua Oigara, Chief Executive of Stanbic Bank Kenya and South Sudan. “We need to create accessible entry points for investors, offering affordable and user-friendly solutions that lower barriers to investment.”
The launch marks Stanbic Bank’s re-entry into asset management, nearly four years after the sale of its former asset management business, Stanlib Kenya, to ICEA Lion Asset Management for USD 15 million. The 2019 transaction, which included managing the Stanlib Fahari I-Reit, saw Stanbic divest its stake in the property fund listed on the Nairobi Securities Exchange.
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“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,” said Anjali Harkoo, Head of Insurance and Asset Management at Stanbic Bank Kenya. “Investing in Stanbic’s unit trusts offers vast advantages, including expert management and diversification across various asset classes.”
The re-launch into the asset management space comes as Stanbic Bank aims to capture a growing segment of Kenyan investors looking for opportunities in local and foreign currencies. The funds will cater to a wide range of investors, including those new to investing and experienced institutional investors seeking diverse portfolios.
Both funds are managed by a team of seasoned professionals from SBG Securities Limited, which is licensed and regulated by the Capital Markets Authority. The bank emphasizes that its offerings 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 added.
The Stanbic Money Market Fund and the Fixed Income Fund represent a fresh approach to investment management in Kenya, where high fees and high minimum investment thresholds have traditionally been barriers for many potential investors. The new funds charge management fees of up to 2% for the Money Market Fund and up to 1% for the Fixed Income Fund.
The funds will be available to both existing and new clients of Stanbic Bank, providing an opportunity for Kenyans to pool their resources and generate superior returns. The bank also plans to introduce more investment products in the future, indicating a long-term commitment to the asset management sector.
