Market yearns for Stanbic Cash Trust

The Stanbic Cash Trust, a money market unit trust that was offered to investors seeking to maximise their short-term income while preserving capital, was oversubscribed by 548% though the fund managers, Stanbic Investment Management Services (SIMS) a subsidiary of Stanbic Bank Ghana, sought to raise GH¢300,000 when the Initial Public Offer (IPO) was launched late last year.

A unit of trust was sold at GH¢1.00. The data indicates that over GH¢1.94million was raised. Head of SIMS Emmanuel Alex Asiedu attributes the product’s over-subscription to the pedigree of SIMS, saying the company has a strong brand earned over the years.

“Stanbic is a strong brand in Africa and has a leading presence in Ghana. Standard Bank Group, which is the parent-bank, has long-term experience in fund management and this is a key factor in the product’s success on the market,” he said.

Mr. Asiedu further pointed out that Stanbic Cash Trust has a unique selling preposition that also contributed to its success.

“Due to its nature, the product has a ready and vibrant market in the country. The parent-bank, Stanbic, also has a vast network that is available to be tapped into. This further strengthened a successful liftoff of the product and ensured that targets were met,” he said.

Investors’ holdings in Stanbic Cash Trust can be redeemed by a unit price calculated in accordance with the terms of the scheme’s particulars, with the fees of the fund being a percentage of assets under management which shall be accrued and charged.

Cash Trust is an open-ended short-term investment product; and unlike the usual practice, there is no holding period. As such, investors can take part or all of their investment at any time they so desire.

Mr. Asiedu assures investors that SIMS has the capabilities to ensure that they get full value for their investment at any period as SIMS continues to manage their funds.

Cash Trust is targetted at individuals, corporate bodies, associations, pension and provident funds, and is tailored to meet the investment needs of the following types of investors: Ghanaian citizens and corporate bodies, including those based abroad; Ghanaian financial institutions and insurance companies; provident, pension and endowment trusts; religious organisations; educational institutions; associations and investment clubs and foreigners.