Faulu Microfinance Bank has launched its Money Market Fund (MMF) in a bid to give its customers access to flexible and profitable investment opportunities.
The Faulu MMF was launched a month after receiving a capital injection of Ksh. 900 million from the Old Mutual Group. The capital injection strengthened the bank’s financial position, enabling it to increase its lending capacity and broaden its range of products and services.
The Fund is a collective investment scheme that is registered with the Capital Markets Authority (CMA) and invests in money-market instruments. These include short-term government securities, bank deposits and high-grade corporate issues securities.
Additionally, the Faulu Fund offers a competitive effective annual yield of 16.32% as of 18th July 2024 which was among the best for similar funds. These competitive investment options are designed to meet the diverse financial goals and preferences of Faulu Bank’s customers and broaden access to previously untapped segments. Interested customers can begin their Faulu MMF investment journey with a minimum of Ksh. 1,000.
The initiative is part of Faulu’s strategic plan to advance its wealth management portfolio, leveraging the extensive expertise and resources of the Old Mutual Investment Group (OMIG).
To begin investing, prospective clients will be required to open MMF accounts and a Faulu transactional account, if not an existing customer. A holding account will be created through the OMIG’s platforms, and furnished through deductions from the customer’s account. The MMF expands Faulu’s suite of financial products, strengthening its customer offering through solutions that meet the evolving needs of its growing customer base by partnering with Old Mutual Investment Group in Wealth Management in Kenya.
Speaking at the launch, Faulu Bank’s CEO Julius Ouma stated, “We are pleased to introduce our Money Market Fund, which is part of the innovative financial solutions we are creating for our customers. This launch broadens the access of our clients to high-quality investment opportunities. We are working with a team of very experienced investment managers, who will ensure that our customers get the best returns on their investments.”
On his part, Old Mutual Investment Group MD Anthony Mwithiga said, “The Old Mutual Group has extensive experience in money market fund management stretching over decades and we bring this expertise to ensure that Faulu customers get competitive returns on their investments. Our teams of fund managers will be fully available to give guidance across a diversified portfolio of money market instruments.”