Faulu Bank Launches Money Market Fund with Competitive Returns

Faulu Microfinance Bank has today launched its highly anticipated Money Market Fund (MMF), which gives its customers access to flexible and profitable investment opportunities.

The Fund is a collective investment scheme that is registered with the Capital Markets Authority and invests in money-market instruments such as short-term Government securities, Bank deposits & high-grade corporate issues securities.

The Faulu 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 as the fund can be setup with a minimum of KES 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), the investment arm of Faulu’s parent company, Old Mutual Group.

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.

“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,” said Faulu Bank’s CEO, Julius Ouma.

“We are working with a team of very experienced investment managers, who will ensure that our customers get the best returns on their investments,” he added.

Money market funds are renowned for their advantages, including enhanced safety, liquidity, and the ability to diversify investments. Investors can benefit from competitive interest returns while maintaining accessibility to their funds, thereby balancing profitability with financial flexibility.

“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,” said Old Mutual Investment Group Managing Director, Anthony Mwithiga.

The Faulu MMF was launched a month after receiving a significant capital injection of KES900 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.