Capital Markets

SIB Mansa-X fund assets surge to Sh12 billion

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SIB portfolio manager Nahashon Mungai during a past function. FILE PHOTO | DIANA NGILA | NMG

Standard Investment Bank (SIB) multi-asset strategy fund Mansa-X recorded an 87 percent growth in assets under management to Sh12.4 billion in the year ended December as double-digit returns drew more clients.

The assets of the fund — which closed its fourth year since launch — stood at Sh6.6 billion a year earlier.

The multi-pronged fund has at the same time delivered returns, net of fees and commissions at 15.59 percent for 2022, taking the compounded annual growth rate over the four years to 17.18 percent.

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The Capital Markets Authority-regulated fund has attributed the growth in assets to increased participation among local investors along with the double-digit returns.

Nevertheless, the fund insists that past performance is not a guarantee of future results.

“This is proof that Kenyans are way more sophisticated than they are given the credit for,” SIB portfolio manager Nahashon Mungai told the Business Daily in an interview.

“Kenyans have been ready for something different and the performance has been proven over time to offer a higher return than your average fund manager without compromising on liquidity.”

The fund tilted its portfolio of investments in the year to favour commodities as the asset class proved to be resilient in the face of the fallout from the Russia-Ukraine conflict.

WTI crude oil, the Nasdaq index, wheat, DataDog Inc, fixed income, the US dollar index, Appfolio Inc, the Trade Desk, Seagate and Tesla were Mansa-X's top 10 holdings in 2022.

In contrast, Treasury bonds, foreign exchange derivatives, Safaricom and Microsoft were the fund's top holdings in 2021.

“When you run a multi-asset strategy fund, what you constantly have to do is adjust your portfolio. Commodities were very good during that period. As interest rates rose, we took positions in global debt instruments including US treasuries and Kenyan Eurobonds,” said Mr Mungai.

Globally, the fund invests in single stocks/stock indices, fixed income, derivatives, precious metals, currencies and commodities.

Back home, the fund holds cash and cash equivalents, fixed income, Nairobi Securities Exchange (NSE) derivatives, exchange-traded funds and NSE stocks.

The fund requires a minimum investment of Sh250,000 with a minimum of Sh100,000 top-ups and at least a six-month lock-in period.

Fees on the fund include a five percent annual management fee that's pro-rated and a 10 percent performance fee, applied on the surplus when the returns surpass the 25 percent threshold.

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Last year, SIB unveiled a similar but dollar-denominated fund for investors looking to hedge their returns against forex losses emanating from the weakening of the Kenya shilling.

SIB says so far the US dollar-based version of the fund has Sh469.8 million ($3.8 million) in assets under management.

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