Standard Chartered Bank Kenya has launched a money market fund that allows consumers to invest as little as Sh1,000.
The investing option is available through the bank’s digital platform SC Mobile app, which has been eager to expand its wealth management business.
StanChart did not specify what kind of returns investors might expect from the local currency fund but stated it will be competitive.
Before fees and taxes, most money market funds provide an effective yearly return of between 8% and 10%.
“The SC Shilingi Fund will enable all our existing and new clients to achieve their financial goals by starting their investment journey, diversifying their portfolios and saving towards future needs while earning attractive returns,” Edith Chumba, the head of the consumer, private and business banking at StanChart said.
Customers can transfer money from their current accounts to the fund on a daily, weekly, or monthly basis.
The digital money market fund will be managed by the bank in collaboration with investment manager Sanlam Investments East Africa and global digital wealth technology supplier Bambu.
Sanlam’s chief operating officer, Mark Mulatya, said, “This partnership confirms our shared commitment to foster a saving and investment culture through products like the Sanlam Money Market Fund.”
“We hope to reach millions of Kenyans who are interested in saving and developing their money by leveraging Standard Chartered’s powerful digital channels, such as their SC Mobile app,” he added.
The Sanlam Unit Trust scheme manages around Sh9 billion in assets.
The fund currently has an effective annual yield of 9.3 per cent, indicating the kind of returns clients signing up now through the SC Mobile platform could get.
Money market funds mostly invest in short-term assets such as bank fixed deposit accounts and Treasury bills, making it possible for investors to access their money in a matter of days.
