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Standard Chartered launches money market fund business

Standard Chartered Bank Kenya has lunched and entered the money market fund business that allows customers to make investments of as low as $10.

Standard Chartered lunches money market fund business

Standard Chartered Bank Kenya has entered the money market fund business, allowing customers to make investments of as low as Sh1,000.

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

StanChart did not indicate the returns investors should expect in the local currency fund but said they will be competitive.

Most money market funds have an effective annual return of between eight and 10 percent before fees and taxes.

“The SC Shilingi Fund will enable all our existing and new clients 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 consumer, private and business banking at StanChart said.

The product enables customers to move money from their current accounts daily, weekly or monthly to the fund.

The bank has partnered with investment manager Sanlam Investments East Africa and global digital wealth technology provider Bambu to run the digital money market fund.

“This collaboration solidifies our shared commitment to promote a saving and investing culture through solutions such as the Sanlam Money Market Fund,” Mark Mulatya, the chief operating officer at Sanlam, said.

“By leveraging on Standard Chartered’s robust digital platforms such as their SC Mobile app, we seek to reach millions of Kenyan residents who are keen on saving and growing their wealth,” he added.

The Sanlam Unit Trust scheme has about Sh9 billion worth of assets under management.

The fund currently has an effective annual yield of 9.3 percent, 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.

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