StanChart waives fees on its money market fund


StanChart Kenya and East Africa head of affluent banking and wealth management Paul Njoki speaks during the Half Two Global Market Outlook media briefing held on July 3, 2023, at Villa Rosa Kempinski Hotel in Nairobi. PHOTO | BILLY OGADA | NMG

Standard Chartered (StanChart) Bank Kenya has waived the one percent upfront fee charge on its online money market fund and halved the minimum entry investment to Sh500 as it looks to expand the reach of the product it launched last year.

The lender said that the fund, in which it partners with investment manager Sanlam Investments East Africa, had by the end of August hit Sh2 billion in assets under management.

The bank, which has been keen to grow its wealth management business, offers the investment service through its digital platform SC Mobile app.

“We have removed the one percent upfront charge, and there are also no charges to withdraw. We have also reduced the minimum ticket from Sh1,000 to Sh500,” said Paul Njoki, StanChart Kenya and East Africa head of affluent banking and wealth management.

“We have also launched the SC Shilingi in Uganda.”

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.

StanChart’s fund currently has an effective annual yield of nine percent. Such Funds are popular with savers or investors seeking to preserve capital or the ability to access their funds easily and with a return.

Mr Njoki said that the SC Shilingi has majorly attracted young investors, where 39 percent of investors in the unit trust are aged between 20 and 30 years, and 37 percent between 30 and 40 years of age.

Last week, the lender also launched an offshore unit trust fund for its Kenyan customers, opening a window for retail investors to access US, European and Asian equities, and bonds markets.

The funds, known as the Signature CIO Funds, are offered in partnership with French asset manager Amundi Asset Management and will require a minimum investment of $1,000 (Sh145,400).

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