Standard Investment Bank (SIB) earned Sh1.4 billion in fees levied on its Mansa X Special Fund, thanks to growth in assets from investment performance and re-investments by clients.
Disclosures by the investment bank show that fees from four Mansa X sub-funds were 68.4 percent higher than in 2023, when SIB netted Sh874.4 million.
The investment bank charges five percent of the funds’ assets under management (AUM), a charge that is exclusive of any applicable taxes.
“A financial service charge of five percent of assets under management is paid to the fund manager, Standard Investment Bank (SIB) covering portfolio management, investment research, custodial services, trustee services and fund management. This charge is exclusive of any applicable taxes,” SIB notes in its latest Mansa X financial statements.
Mansa X also charges performance fees at a rate of 10 percent for any returns above 25 percent for the shilling-denominated funds and 15 percent for the dollar funds. However, the performance of the funds has not yet reached this threshold in any given year.
The funds have, however, consistently delivered returns above both the rate of inflation and yields on traditional assets such as commercial bank fixed deposits and Treasury bonds.
Total assets managed under the SIB Mansa X funds grew by more than twofold to Sh47 billion at the end of December 2024, up from Sh22.1 billion previously, helping lift fees earned by the fund manager.
Mansa X is a regulated special fund domiciled in Kenya that invests in the local and global markets.
SIB describes Mansa X as a multi-asset strategy fund with a long and short trading model designed to optimise returns for clients under all market conditions, while protecting their capital from downside risks.
Mansa X comprises four sub-funds: the shilling-denominated Mansa X Special Fund and Mansa X Sharia Special Fund; and the dollar-denominated Mansa X Special Fund and Mansa X Sharia Special Fund.
Total profit generated by the funds increased by 78.8 percent in 2024 to reach Sh5.6 billion, up from Sh3.1 billion, reflecting improved earnings amid a challenging local and external conditions.
The shilling-denominated Mansa X Special Fund, for instance, delivered returns of 15.59 percent, 18.01 percent and 19.53 percent in 2022, 2023 and 2024, respectively.
At the end of last year, the fund’s top 10 holdings included fixed income instruments, interest rate derivatives, the US S&P 500 index, natural gas, the Canadian dollar, Microsoft, Netflix and Palantir Technologies.
Mansa X Portfolio Manager and SIB Executive Director for Global Markets Nahashon Mungai says that the fund manager continues to see opportunities for 2025, although he emphasises caution.
“As we move into 2025, we are encouraged by opportunities in both the equity and fixed income markets but caution that this is not a time to get greedy, particularly when it comes to stocks,” he said.
“The outlook is not without risks. Clarity in some areas is offset by uncertainty in others. For one thing, new policies around trade and immigration could be inflationary across time.”
