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Standard Investment Bank (SIB) multi-asset fund MansaX grew by Sh5.6 billion or 17 percent in the third quarter to the end of September.
The fund’s growth to Sh38.4 billion from Sh32.8 billion in June is attributable to a combination of inflows from new investors and reinvestments by existing ones.
The dollar-denominated segment of the fund grew the fastest (by 22.5 percent) in the quarter from $38.6 million (Sh4.9 billion) to $47.3 million (Sh6.1 billion).
The Kenya shilling denominated portion of the fund was meanwhile up 15.7 percent in the three months to Sh32.3 billion from Sh27.9 billion previously.
The local currency part of the fund delivered a return of 5.14 percent, an improvement from 4.63 percent in the same quarter last year and higher than 4.99 percent in the second quarter of 2024.
The US dollar-denominated fund meanwhile posted a return of 3.12 percent in the same quarter from 3.06 percent during the same period last year and 2.93 percent in the quarter ended June.
SIB has attributed the growth in returns to a rebound in major asset classes amid the start of interest rate cuts in advanced economies even as global headwinds persisted.
“14 months from its last interest rate hike, the Federal Reserve started its long-anticipated easing cycle with a bang by slashing the federal-funds rate by half a point as central banks around Europe and Canada continued to lower interest rates too as inflation slows across the major economies,” noted Nahashon Mungai, Mansa-X Portfolio Manager.
Both the Kenya shilling and the US dollar-denominated fund invested in similar assets across the quarter with each of their two top holdings being fixed-income instruments and interest rate derivatives.
The two portfolios were also invested in gold futures, the shares of Meta Platforms Inc., and cash and cash equivalents.
The two funds require minimum investments of Sh250,000 and $2,500 (Sh322,975) respectively with minimum top-ups of Sh100,000 and $1,000 (Sh129,190 )each.
The funds attract financial services charges at five percent per annum but do not attract redemption/withdrawal charges.
Mansa-X additionally attracts performance charges of 10 percent above the hurdle rate which sits at a return of 25 percent for the Kenya shilling denominated fund and 15 percent for the dollar fund.
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