NAIROBI, Kenya- Stanbic Bank Kenya has made its debut into the asset management space, marking a bold move to expand its investment portfolio through a newly established Insurance and Asset Management Unit.
This new division has set its sights on introducing more innovative financial products tailored to meet the growing demand for investment solutions among both retail and institutional clients.
On Tuesday, Stanbic Bank officially launched two key products—the Stanbic Money Market Fund (KES) and the Stanbic Fixed Income Fund (USD)—following approval from the Capital Markets Authority earlier this year.
These funds, managed by SBG Securities Limited, a subsidiary of Stanbic Holdings Plc, aim to mobilize domestic savings while offering attractive yields for investors.
Stanbic’s new investment funds are offering competitive returns, with the Money Market Fund (KES) delivering an annualized yield of 15.12pc, while the Fixed Income Fund (USD) provides a yield of 5.56pc.
These funds are designed with accessibility in mind, allowing investors to enter with as little as KSh 1,000 for the Money Market Fund and USD 100 for the Fixed Income Fund.
Management fees are capped at 2pc for the Money Market Fund and 1pc for the Fixed Income Fund.
“Our Asset Management unit is strategically positioned to deliver investment solutions that drive growth for both retail and institutional investors,” said Joshua Oigara, Chief Executive of Stanbic Bank Kenya and South Sudan, during the product launch.
He emphasized the need to strengthen capital markets and provide investment products that cater to the unique needs of Kenyan investors.
Stanbic’s foray into asset management places it in direct competition with established players who collectively manage over KSh 254.06 billion as of June 2024.
According to the Capital Markets Authority, government securities dominate this space, accounting for 39.2pc of total assets under management, followed by fixed deposits at 33.4pc.
Listed securities have seen significant growth, with a 523pc increase, highlighting a growing interest in the stock market.
Despite a competitive landscape, Stanbic’s entry comes at a time when investors are increasingly looking for diversified investment vehicles that offer stable returns in a fluctuating market.
The bank is banking on its reputation and strategic positioning to carve out its share of the market while encouraging more Kenyans to participate in domestic savings and investment programs.
Stanbic’s move reflects a broader trend in the Kenyan financial sector toward expanding collective investment schemes (CIS).
A CIS pools money from multiple investors, allowing them to benefit from diversified portfolios managed by professional fund managers.
As unit trust funds continue to diversify, their role in fostering a robust investment culture in Kenya is growing, with more funds now being channeled toward listed securities and other high-yield opportunities.
