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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Mansa-X’s financial services charge of 5% per annum, prorated daily, is competitive when weighed against its performance. For investors, the net returns remain highly attractive, proving that the fund offers excellent value for money.

The fund’s focus on transparency and accountability is another draw. Managed by Standard Investment Bank, a reputable institution, Mansa-X provides regular performance updates and detailed reporting, ensuring that investors are always informed about their investments.

One of the most appealing aspects of Mansa-X is its alignment with Kenya’s evolving financial landscape. By investing in both local and international markets, the fund supports economic growth while offering global diversification. This dual focus aligns with the needs of investors seeking exposure to both emerging and developed markets.

The fund’s performance during economic downturns is particularly noteworthy. While many investment vehicles faltered during the COVID-19 pandemic, Mansa-X demonstrated resilience, leveraging its multi-asset strategy to deliver consistent returns.

For investors concerned about liquidity, Mansa-X’s minimum top-up requirement of KES 100,000 ensures flexibility. This allows investors to increase their stakes without significant financial strain, fostering a culture of incremental wealth building.

The fund’s innovative use of derivatives and other advanced financial instruments sets it apart from traditional investment options. By employing these tools, Mansa-X can hedge risks and capitalize on market inefficiencies, further enhancing its performance.

Mansa-X’s appeal extends beyond individual investors. Institutional investors, including pension funds and corporate entities, are increasingly turning to the fund for its reliable performance and robust risk management.

The fund’s impact on financial literacy in Kenya cannot be overstated. Through its success, Mansa-X has inspired more Kenyans to explore alternative investment options, fostering a culture of informed financial decision-making.

A key strength of Mansa-X is its adaptability to regulatory changes. By maintaining compliance with Capital Markets Authority guidelines, the fund ensures long-term sustainability and investor protection.

The introduction of the USD Fund in October 2022 reflects Mansa-X’s commitment to innovation. This addition broadens the fund’s appeal, catering to investors seeking dollar-denominated returns in a stable, regulated environment.

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Mansa-X’s role in wealth preservation is particularly relevant in today’s economic climate. As inflation erodes the purchasing power of cash, the fund offers a reliable vehicle for maintaining and growing wealth.

The fund’s social impact is also worth mentioning. By channeling investments into various sectors, Mansa-X indirectly supports job creation and economic development in Kenya and beyond.

For those new to investing, Mansa-X provides a structured, professionally managed option that simplifies the complexities of financial markets. Its proven track record instills confidence, encouraging more Kenyans to take their first steps toward wealth creation.

Mansa-X’s success is a testament to the power of strategic, innovative investment management. By consistently outperforming the market, the fund has set a new benchmark for what is possible in Kenya’s financial sector.

While no investment is without risk, Mansa-X’s balanced approach offers a compelling mix of growth and stability. For investors seeking to maximize returns while minimizing risks, Mansa-X remains an unmatched choice in Kenya’s investment landscape.

Ultimately, Mansa-X is more than just a fund; it is a financial revolution. By delivering consistent, above-market returns and fostering a culture of informed investing, Mansa-X has redefined the possibilities for Kenyan investors.

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