Mansax fund, a product of Standard Investment Bank Ltd (SIB), is a global multi-asset strategy fund domiciled and regulated in Kenya. The fund operates under license of the Capital Markets Authority (CMA) based on the Online Forex Trading Regulations (2017), as well as the investment banking license of SIB.
Mansax uses a unique trading model that allows it to position itself as a local fund with a global presence. In 2019 the fund was able to return 19.01% net of fees and in 2020 yielded 18.75% net of fees.
This was achieved primarily by investing in a wide array of financial instruments. In the local space, Mansax invests a significant portion of its portfolio in cash and cash equivalent products. These include government securities, over the counter derivatives and cash placements. This serves to de-risk the fund and protect investors’ funds from the downside risks of volatile asset classes.
The fund also exposes investors to global financial instruments. These include major world currencies, precious metals, commodities, global stock indices and selected single stocks from around major world stock exchanges. In the recent past, most of these assets have seen significant price variation. Mansax is perfectly positioned to take advantage of these movements and pass on the benefit to its investors.
In the past year, the Federal Reserve of the United States increased its balance sheet, essentially printed money, to the size of almost USD 7.5 Trillion in a bid to stimulate the economy. This cheap liquidity in the markets caused most assets to gain in value over this period in spite of the doom and gloom of the Covid-19 Pandemic.
As an example, the S&P 500 stock index gained 25% in 2020. Certain asset classes also saw tremendous movements. Gold, for example, gained about 23%, Silver a whopping 50% and most currencies in excess of 15% against the USD. Single stocks, especially in the tech sector, made even more stupendous gains with Tesla gaining an incredible 700% and Apple, Nvidia and Shopify all making gains exceeding 150%. The US president Joe Biden recently passed a bill approving a further stimulus of USD 1.9 Trillion. This should continue to support the US stock markets and by extension most asset classes.
Mansax also has the ability to make returns when assets lose value. This is called shorting markets. An example is selling Oil at its all-time high price and buying it back lower if the price dips. There were several opportunities last year to use this strategy to make a profit.
Moreover, Mansax is licensed to use a trading tool called Leverage. Leverage is using borrowed funds to increase one’s trading position beyond what is available from their cash balance alone. This model allows funds to profit from relatively small price changes in the financial instruments that they trade in.
The outlook for 2021 for Mansax remains positive. The past few years have validated its unique trading model and the fund remains well positioned to take advantage of this environment to make returns for its investors. A robust risk management framework also means that these returns will be created with due regard to downside risks.