Mansa-X Special Fund: With A 17.84% Average Returns Over The Last 5 Years – Is It Kenya’s Best Fund?

Mansa-X Special Fund has emerged as a beacon of success in Kenya’s financial sector, delivering an impressive average return of 17.84% annually over the last five years. Licensed by the Capital Markets Authority and managed by Standard Investment Bank, Mansa-X has transformed the way Kenyans approach investment. It combines innovative strategies with a focus on both capital preservation and growth, appealing to seasoned and new investors alike.

An investor who put KES 1,000,000 into the Mansa-X fund on January 1, 2019, would see their investment grow to KES 2,701,368 by September 30, 2024. This performance outpaces many traditional investment vehicles in Kenya, showcasing its ability to generate consistent above-market returns. The fund’s minimum investment threshold of KES 250,000 ensures accessibility for high-net-worth individuals while maintaining exclusivity.

The fund’s diversified investment strategy is a key differentiator. Mansa-X employs a sophisticated long/short trading model that allows it to thrive in volatile markets. By simultaneously leveraging long positions on promising assets and short positions on overvalued ones, the fund minimizes losses while maximizing returns. This dual strategy is particularly suited for navigating Kenya’s and global markets’ unpredictability.

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The impressive growth of the fund’s Assets Under Management (AUM) reinforces investor confidence. As of Q3 2024, the Mansa-X KES Fund had grown to KES 32.3 billion, while the USD Fund—introduced in October 2022—boasted USD 47.3 million in AUM. This rapid expansion is a testament to the fund’s ability to attract and retain investors, even in uncertain economic climates.

What sets Mansa-X apart is its adaptability. The fund’s investments span local and global financial instruments, including single stocks, stock indices, fixed income, commodities, and currencies. Domestically, it leverages opportunities in cash equivalents, fixed income, equities, and NSE derivatives. This multi-asset approach ensures that the fund remains resilient across market cycles.

The fund’s hurdle rate of 25% underscores its ambitious performance goals. Unlike many investment options that passively track market indices, Mansa-X is actively managed to exceed this benchmark. Performance charges of 10% above the hurdle rate align the fund manager’s incentives with those of the investors, creating a win-win scenario.

For USD investors, Mansa-X offers a parallel fund with a hurdle rate of 15% and an average annual return of 12.08% since its inception in October 2022. This provides an attractive option for dollar-denominated investments, particularly for Kenyans with international financial obligations or aspirations.

The fund’s lock-in period of six months balances liquidity with the need for stable capital. Investors benefit from the opportunity to withdraw funds while ensuring the stability required for strategic, long-term investments. This makes Mansa-X a versatile option for both short-term and long-term financial goals.

Risk management is at the core of Mansa-X’s operations. Rated at 2 out of 5 on the risk scale, the fund’s diversified portfolio minimizes exposure to market volatility. Its multi-asset strategy spreads investments across various asset classes, trading instruments, geographies, and currencies, ensuring a balanced risk-reward profile.

The five-year average return of 17.84% p.a. significantly outshines traditional savings accounts, money market funds, and even some real estate investments in Kenya. In comparison, Kenya’s average inflation rate during this period hovered around 6-8%, meaning Mansa-X has consistently delivered positive real returns, safeguarding and growing investor wealth.

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