Standard Chartered expands global investment options for Kenyan investors

The bank has introduced several new options, including US Corporate Bonds, USD Government bonds, and its own curated Signature CIO funds. 

The new offerings complement Standard Chartered's existing portfolio of investment products, which includes ESG funds, USD Money Market Funds (MMF), and Mutual Funds in various currencies. This move comes as Kenyan investors increasingly seek opportunities beyond local markets, with trends showing rising interest in Exchange-Traded Funds (ETFs) and Money Market Funds (MMFs).

Edith Chumba, Head of Wealth and Retail Banking for Kenya and East Africa at Standard Chartered, noted the bank's focus on digital accessibility.

"We're leveraging our comprehensive digital infrastructure to democratize access to investment solutions," Chumba stated. The bank's digital platform now allows investors to buy, track, and sell various investment products, including US Treasuries and Foreign Currency Money Market Funds, all through the SC Mobile App KE.

The expansion of global investment options reflects broader trends in Kenya's investment landscape. Recent studies indicate growing interest in sustainable investing, with demand increasing for ESG funds and green bonds. Additionally, digital assets are gaining traction among Kenyan investors.

The bank's offering now includes access to over 200 international unit trusts in USD, GBP, and EUR, with a minimum investment of 100 USD on a Monthly Wealth Builder plan or a lumpsum of 1000 USD.

While the expanded offerings present new opportunities, they also come with potential risks and challenges. Investors venturing into global markets may face currency fluctuations, geopolitical risks, and the need for a deeper understanding of international financial markets. To address these challenges, Standard Chartered is enhancing its educational initiatives.

The bank is implementing the SC Wealth Select investment framework, which uses a "Today, Tomorrow, Forever" approach to guide investors through immediate, short-term, and long-term financial planning. This framework is designed to help clients identify appropriate investment options based on their current needs, future goals, and long-term legacy planning.

The bank's investment offering is underpinned by a structured advisory framework and research to ensure clients are well-equipped when making financial decisions. This approach combines over 100 years of banking experience with real-time market insights to guide investors through various stages of financial planning.

Standard Chartered's expansion aligns with current investment trends in Kenya. According to recent studies, Kenyans are allocating a portion of their bonus earnings to global investments. Furthermore, Kenyans in the diaspora are increasingly investing their money back home, with a significant focus on real estate, businesses, and the stock market.

Another driver of global investment needs in Kenya is the focus on children's education and self-improvement studies. This trend reinstates the importance of long-term financial planning and diversification in investment portfolios.

The bank's new offerings also cater to different investment timeframes. For short-term needs ("Today"), solutions include fixed income instruments like US T-bills and international mutual funds paying distributions in USD, GBP, and EUR. Medium-term needs ("Tomorrow") are addressed through growth portfolios exposed to global equities and bonds, while long-term planning ("Forever") includes options for wealth transfer and life cover.

Financial institutions are adapting their services, as Kenyan investors become more globally oriented. However, experts caution that while global diversification can offer benefits, it's crucial for investors to thoroughly understand these new products and their associated risks.