The Standard Chartred (StanChart) Bank Kenya will introduce a new rate of fee charge on its online money market fund, Sanlam Money Market Fund beginning 1st September 2024.
In a detailed notice to investors, StanChart announced that the fund, in which it partners with investment manager Sanlam Investments East Africa will increase the annual management fees from 1.2% to 1.5% due to rising operational costs.
“We wish to inform you that, during the 9th Sanlam Unit Trust Annual General Meeting held on 22 May 2024, it was resolved that there will be an increase in the annual management fees for the Sanlam Money Market Fund,” read the notice by Paul Njoki, the Head of Affluent and Wealth Solutions for Kenya and East Africa.
“The rate will change from 1.2% to 1.5% effective 1st September 2024.”
The bank advised that the annual yield displayed on the SC Shillingi Funds Platform will remain after deducting the annual management charge.
The yield will include the new management fees thus the return figures displayed reflect net earnings after all charges are accounted for. The standard 15% withholding tax on interest earned on the fund will stay the same.
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A report shared in 2023 by Mr Njoki revealed that Sanlam’s Money Market Fund has attracted lots of young investors, with 39% aged between 20 and 30 years and 37% between 30 and 40 years.
The lender invests mostly in short-term assets such as bank fixed deposit accounts and treasury bills, making it possible for investors to get their money in days on demand.