Products

STANLIB Kenya Institutional Business

We aim to adopt the best values and techniques as practiced internationally into the Kenyan investment management industry. Our main areas of business:

  • Management of Employee Retirement Benefits (Pension/Provident funds)
  • Property Investments
  • Insurance Funds
  • Advisory Services
  • Private Equity

We do this through a variety of both domestic and offshore investment instruments for Corporates, Governments & Paratstatals , International Organizations and Non Governmental Organizations.

We believe that we are able to add value to the treasury and cash management functions of any institution through active investment management.

 

STANLIB Money Market Fund

What is the STANLIB Money Market Fund?

The STANLIB Money Market Fund is a unit trust (collective investment scheme) fund that aims to maximise income while preserving capital over the medium term, and to ensure liquidity of funds invested. It invests in a wide range of highly marketable short-term debt securities, which include short-term government securities like treasury bills, corporate financial instruments such as bankers’ acceptances, negotiable certificates of deposit (NCDs), commercial paper and other debt securities.

There is currently a great demand for alternative cash products in Kenya, and this fund is ideally positioned for investors who are looking for investment returns that are stronger than local bank deposits with the convenience of a call account.

Who Should Invest?

The fund caters for corporates, institutions and private investors who have cash available to invest over the medium-term, who require the flexibility to withdraw funds at relatively short notice.

This fund is suitable for:

  • Investors who require a wholesale interest rate on cash
  • Short-term investors requiring a ‘parking bay’ for their cash
  • Investors who require low-risk, secure investments with yields in excess of traditional banking products

Why Invest in the STANLIB Money Market Fund?

In the past, investors have relied on savings accounts as a saving vehicle for a home purchase, children’s education, retirement or for emergencies. Investors now have the opportunity to utilise the STANLIB Money Market Fund for all their savings needs, at higher yields on cash deposits than traditional savings accounts and term deposits.

The economies of scale achieved through pooling of investments enables the fund manager to purchase higher yielding instruments that individual clients and medium sized corporates and institutions would not normally have access to through traditional savings and normal bank deposits. The fund also gives investors direct access to the expertise and experience of one of Africa’s leading money market investment teams.

Investment Amount  
Minimum Initial Investment Amount  KES10 000
Minimum Monthly Debit Order KES5 000

Fees Structure  
Initial Charge (for retail clients only) Nil
Annual Management Fee 2%
 

STANLIB Balanced Fund

What is the STANLIB Balanced Fund? The STANLIB Balanced Fund is a medium term collective investment scheme that invests in a diversified spread of equities and fixed-income securities with the primary objective being to seek long-term capital growth and income consistent with moderate investment risk from a wide range of securities.

The STANLIB Balanced Fund may invest in securities listed on the Nairobi Securities Exchange (NSE), Government Securities and any other security not listed on a recognized Securities Exchange in Kenya including 17 other Collective Investment Schemes, Immovable Property and offshore Investments.

Who Should Invest?

The STANLIB Balanced Fund is designed for individuals who have cash available to invest over the medium-term to long-term. The fund effectively provides an investment opportunity for individuals who require medium risk, and protection against inflation.

The STANLIB Balanced Fund is designed for institutional investors who traditionally hold large cash balances but who need extra returns at moderate risk. Institutional Investors benefit from a well-diversified investment at marginal fees. The fund is suitable for institutional investors who require undivided participation in a well-diversified portfolio of market instruments. The Fund is also well suited for Individual Retirement Benefits Scheme.

Why Invest in the STANLIB Balanced Fund?

The most important benefit of investing in the cross asset class STANLIB Balanced Fund is to ensure suitable asset allocation, which is insulated from the swings of euphoria or the depths of panic, which investors are typically prone to. Simply put this would be a fund that preserves an investor’s capital by protecting on the downside while creating wealth by participating on the upside.

The STANLIB Balanced Fund provides investors with exposure to a number of asset classes that are positively and negatively correlated. This diversification of assets provides investors with the comfort that their exposure to risk is contained without unduly compromising returns.

Investment Amounts  
Minimum Initial Investment Amount KES 10 000 
Minimum Additional Investment KES 5 000 
Minimum Balance Required on Investment  KES 10 000

Fees Structure  
 Initial Fee   Nil 
 Annual Management Fee 3.00% 
 

STANLIB Equity Fund

What is the STANLIB Equity Fund?

The STANLIB Equity Fund was created to achieve an investment medium for unit-holders, which shall have its primary objective long-term capital growth, a reasonable level of dividends and the maximum stability of capital invested.

The investment universe of the STANLIB Equity Fund includes ordinary shares listed on an exchange, and when appropriate other securities including non-equity securities and preference shares. The investments are structured into an optimal asset allocation that takes into account the prevailing economic conditions with a view of maximizing total returns while minimizing the fund’s risks.

Who Should Invest?

The fund caters for corporates, institutions and private investors who have cash available to invest over the medium to long-term. This fund is suitable for investors:

  • Seeking steady long-term capital growth.
  • Typically have an investment horizon of more than five years.
  • Investors who require returns commensurate with medium to high risk.

Why Invest in the STANLIB Equity Fund?

Over the years equities, as an asset class, have certainly justified their reputation as a reliable, long-term builder of personal wealth. The share price appreciation from equity investments can generate significant profits and the regular distribution of dividends offers investors an on-going stream of income. Equities also have the ability to outperform inflation over time.

The STANLIB Equity Fund, therefore, offers an attractive investment solution for investors whose aim is long-term wealth creation.

Investment Amounts  
Minimum Initial Investment Amount KES 10 000 
Minimum Additional Investment KES 5 000 
Minimum Balance Required on Investment  KES 10 000

Fees Structure  
 Initial Fee   Nil 
 Annual Management Fee 3.00% 
 

STANLIB Bond Fund

What is the STANLIB Bond Fund?

The STANLIB Bond Fund is a medium-term collective investment scheme that invests in a diversified spread of fixed-income securities with the primary objective being to seek income generation and long-term capital growth consistent with moderate investment risk from a wide range of Bond securities. The Fund’s principal investment objective is to provide high current income by investing primarily in Bond securities.

The fund seeks to outperform medium term interest rates. The investment universe of the Bond fund includes securities listed at the NSE, Government securities; any other security not listed on a recognized Securities Exchange in Kenya including; commercial papers and unlisted corporate bonds.

Who Should Invest?

The Bond Fund is designed for individuals who have cash available to invest over the medium-term to long-term. The fund effectively provides an investment opportunity for individuals who require medium risk, and protection against inflation. The target investment period is three to five years.

The Bond Fund is designed for institutional investors who traditionally hold large cash balances but who need extra returns at moderate risk. Institutional Investors benefit from a well-diversified investment at marginal fees. The Fund is suitable for institutional investors who require undivided participation in a well-diversified portfolio of market instruments. The Fund is also well suited for Individual Retirement Benefits Scheme.

Why Invest in the STANLIB Bond Fund?

Bond instruments are the key sources of generating a regular income coupled with the fact that debt offers diversification and safety of capital.

Investing in the STANLIB Bond Fund also gives investors the benefit of professional management, diversification, easy access to funds and investment flexibility.

Investment Amounts  
Minimum Initial Investment Amount KES 10 000 
Minimum Additional Investment KES 5 000 
Minimum Balance Required on Investment  KES 10 000

Fees Structure  
 Initial Fee   Nil 
 Annual Management Fee 3.00% 
 

General Information - Collective Investment Schemes

What is a Collective Investment Scheme?
Collective Investment Schemes are investments where investors' funds are pooled and managed by professional managers.

Investing in shares has traditionally yielded unrivalled returns, offering investors the opportunity to build real wealth. Yet, the large amounts of money required to purchase these shares are often out of reach for smaller investors. The pooling of investors' funds makes Collective Investment Schemes the ideal alternative, providing cost effective access to a wide variety of local and international shares / equities (companies listed on a stock exchange), bonds, and money market instruments such as fixed deposits, treasury bills and call accounts.

Pooling enables investors to reduce transactional costs involved in buying and selling of securities and gives investors the ability to negotiate for better returns than they would get if investing individually.

Safety and transparency
The collective investment industry is strictly regulated by the Capital Markets Authority's Collective Investment Scheme (CIS) Regulations, 2001. The regulations allow the investor to enjoy total transparency of fees, charges and investment performance.

However, the Capital Markets Authority does not take any responsibility for the financial soundness of a scheme for correctness of any statements made or opinions expressed in this regard.

Tips for successful investing:
Identify your goal (these should be realistic)
Establish a time frame
Identify your level of risk based on your current responsibilities
Understand the volatility of return associated with different investment types
Shares
Usually identified as having the potential for the highest return of all the investment classes, but with a higher level of risk i.e. share investments have the most volatile returns over the short term.

An investment of this type of asset should be based on the investors' objectives but it is recommended that it be viewed on a medium to long-term horizon e.g. over five years.

Property
Property yields are normally stable and predictable as they comprise many contractual leases, the rentals of which are passed through to investors.

Property share prices however fluctuate with supply and demand and are counter cyclical to the interest rate cycle.

Property is an excellent inflation hedge as rentals escalate with inflation, ensuring distribution growth, and property values escalate with inflation ensuring net asset value growth.

Bonds
Bonds generally have a lower risk than shares because the holder of a bond has the security of knowing that they will be repaid in full by government authorities. Corporate bonds can also be included and have a slightly higher risk than government-issued bonds. An investment in this type of asset should be viewed with a 3 to 6 year horizon.

Cash
Cash is generally regarded as the safest investment. Whilst it is theoretically possible to make a capital loss investing in cash due to the effects of inflation etc., it is highly unlikely.

Due to its stable nature, cash has a relatively low return in comparison to the other investment classes. An investment in this type of asset may be viewed with a horizon less than 3 years.

Equity Portfolios
These portfolios invest in selected shares across all the industry sectors of the Nairobi Stock Exchange and offer medium to long-term capital growth as their primary investment objective.

Balanced Portfolios
Balanced portfolios invest in a wide spread of investments in the equity, bond, money markets and aim to provide capital appreciation together with interest income over the medium to long-term.

Fixed Interest Portfolios
Fixed Interest Portfolios invest in bonds, money market instruments and other income earning securities and aim to provide interest income over the short to medium-term. They also provide the opportunity for capital growth.