Stanbic Money Market Fund

What is the Stanbic Money Market Fund?

The Stanbic Money Market Fund (SMMF) is a collective investment scheme that invests in money market instruments that include Government Paper, Fixed Deposits and Cash & Call Accounts.

Investor Profile:

Individuals:
The SMMF is designed for individuals who have cash available to invest over the short to medium-term, even though the money may be required within a relatively short-notice period.

The fund effectively provides an investment opportunity for individuals who require low risks, security and yields in excess of traditional banking products.

Institutional:
The SMMF is designed for investors who traditionally hold large cash balances but which need to remain liquid for operational reasons. Investors benefit from institutional money market investment at marginal fees.

The fund is suitable for institutional investors who require undivided participation in a well diversified portfolio of market instruments.

How does the SMMF work?
Individual investor's funds are pooled together to form a bulk investment. It provides you with the opportunity to enjoy a wholesale rate of return, normally associated with large corporate investors. The Stanbic Money Market Fund (SMMF) is the ideal place for money that will be needed in the near future, to keep an emergency cash fund or to park your money while seeking more attractive investment opportunities.

By investing in the SMMF you enjoy:

High Liquidity
Clients are able to withdraw funds at short notice, with no minimum 'lock-in' investment periods or penalty fees.

Security
The Fund only invests in Government Paper and liquid instruments.

Competitive Yields
Interest is calculated daily and distributed at each month-end. A collective investment scheme combines the assets it holds in trust for investors, it is in effect an "institutional trader" and as such can buy securities at wholesale prices thus securing competitive yields.

Investment Strategy
The SMMF was created in response to demand for cash management with a conservative bias. The investment universe of the SMMF includes Government Paper, Fixed Interest and Call Accounts. The objective of the investment is to outperform both bank current and call account rates.

How to Invest and Disinvest

Investing
Our procedures are designed to be investor friendly. An application form is available from Stanbic Investments and simply needs to be completed and submitted.

Disinvesting
By simply completing and having the authorised signatories sign the appropriate form your funds will be readily available within 4 working days. Withdrawal of funds can be made either on a total or partial basis. Transfers will take place electronically into the client's account. For security reasons, payments will only be made to original account holders; no third-party payments will be made.

Investment Amounts

Minimum	Kshs 100,000.00
Minimum additional investment	Kshs 50,000.00

Fee Structure

Annual Management Fee	1.75% p.a
Entry or exit fees	0%

Comparison with Bank Account	SMMF	Bank Account
Wholesale rate of return	Yes	No
Achieves diversification through one investment	Yes	No
Liquidity	Yes	No
Monthly Statements	Yes	Yes
Transactional	No	Yes
Investment	Yes	No

About the fund

Fund Manager	Stanbic Investment Management Services (EA)Ltd.
Launch Date	May 2006
Risk Profile	Low
Trustee	KCB
Custodian	Standard Chartered Custody Services
Auditors	Pricewaterhouse Coopers

 

Disclaimer
The price of shares and the income there from the collective investment scheme pays dividends may go down as well as up. Investors are reminded that in certain specified circumstances their right to redeem their shares may be suspended.

Stanbic Unit Trust Funds are approved by the Capital Markets Authority. The Authority does not take responsibility for the financial soundness of the scheme or for the correctness of any statements made or opinions expressed in this regard. The terms and conditions of investment with respect to Stanbic Unit Trust Funds are governed by duly registered Information Memorandum and Trust Deeds.