In the recent past, there has been an increase in the uptake of investment products offered by licensed Fund managers in Kenya, by Kenyans both locally and those in the diaspora. This has been attributed to the widespread awareness of investment products through media and more specifically social media. A Fund manager is a licensed professional whose job entails investing clients’ funds into a different investment vehicle and paying back the investor’s profits from gains made from the trades.

The fund manager invests money obtained from different investors who pool together resources into a common pool, These are collectively referred to as Collective Investment Schemes where out of the pool of funds, the fund manager can either invest the money into;

1. Money Market—— The Funds are invested in short-term instruments
2. Equity Fund———- The Funds are invested in Equity Stocks
3. Balanced Fund—— The Funds are invested in both Equity and Debt Instruments
4. Fixed Income Fund— The funds are invested in Debt Instruments

Among the best-performing collective investment schemes in Kenya is Sanlam Investment, which offers Sanlam Money Market Fund – both KSH and USD, Sanlam Fixed Income Fund

About Sanlam Investments

Sanlam Money Market Funds is a fund operated by Sanlam Investments East Africa (SIEAL), a leading fund manager within the East Africa region with assets under management at Ksh 444 Billion as of 31st Dec 20223.

The company is licensed by the Capital Markets Authority (CMA), and is part of Sanlam Group, a leading financial services group with operations in more than 30 African countries and primarily listed in South Africa at the Johannesburg Stock Exchange.

More Information About the Sanlam Money Market Fund can be found on the trust deed and Sanlam Unit Trust Funds information memorandum.

Sanlam Investments Trust Units

Sanlam Investment has different funds amongst their collective Investment Trust offerings; this includes:

1. Sanlam Money Market Fund- Fact Sheet
2. Sanlam Fixed Income Fund- Fact Sheet
3. Sanlam Balanced Fund- Fact Sheet

An Overview of the Sanlam Money Market Fund

The Sanlam Money Market fund is a conservative investment product, that aims to provide the investor with capital preservation while offering high levels of income. The funds are invested in short-term cash equivalent securities such as Treasury bills & bonds, high-quality corporate bonds, and bank deposits.

Performance of the Sanlam Unit Trust Fund

The funds under Sanlam Investment Trust offer competitive rates with the Sanlam Money Market Fund’s objective being to preserve the value of the investment while still earning valuable returns.

Requirements to Open a Sanlam Money Market Fund

Individuals, partners /joint accounts, Corporations and Institutions can open an account with Sanlam Investments and have their investment managed by a professional fund manager.

Requirements for Individuals

1. Copy of National ID for Kenyans and Alien ID for Foreigners
2. KRA PIN Certificate
3. Proof of Bank Account in the form of a Bank ATM or Mini Statement
4. Minimum Amount of KSh 2,500 for Sanlam Money Market Fund

Requirements for Corporates

1. Certificate of Incorporation
2. Corporate KRA Pin
3. CR 12 for Companies
4. ID and KRA Pins for the Directors
5. Proof of Bank Account
6. Minutes or Resolution Authorizing the setup
7. Minimum Amount Payment

You can Sign up for the Sanlam MMF account online via the following link for individuals, for joint account holders and institutions you can use the digital form or get in touch with our team, an independent financial advisor working in partnership with Sanlam to offer competitive alternative investment products.

FAQs about Sanlam Money Market Fund

What charges are involved?

15% Withholding tax is charged on the interest earned. Different categories of people are exempt from the above tax and will need to provide the KRA tax exemption certificate.

How long does withdrawal take?

Withdrawals of KES 200,000 and below can be sent via Mpesa within the same working day. Withdrawals above KES 200,000 or from the USD Fixed Income Fund account take three working days from the date of request.

How many times can one withdraw in a month?

Investors have the flexibility to make multiple withdrawals at their discretion. Sanlam offer one free withdrawal per month, subsequent withdrawals within the same calendar month are subject to a frequency charge of KES 500 / USD 5

What is the minimum amount that can be withdrawn?

The minimum that can be redeemed is KES 1,000 from your Money Market Fund, Fixed Income and Balanced Fund account and USD 500 from your USD Fixed Income Fund account.

Conclusion

Money market funds offer investors an opportunity to preserve their capital whilst earning some returns. They are ideal for moderate investors who are looking for moderate-risk investments to cushion against inflation.

You can reach out to our team for guidance on getting started with the Sanlam Investment unit trust account set up for either individual or corporate accounts.
You can call our team on Mobile or Send us a Whats app message. +254706600875 | +254208400605 Email: hello@anzianoconsultants.com