Understanding Special Funds Like MansaX — A Beginner's Guide
Understanding Special Funds Like MansaX — A Beginner's Guide
You've probably seen people online saying things like:
"MansaX returned over 20%."
"Special Funds outperform MMFs."
"This is where serious investors are putting their money."
Naturally, the next question is:
"What exactly is a Special Fund?"
Is it another Money Market Fund (MMF)?
Is it a unit trust?
Is it safe?
Or is it simply a higher-risk investment promising higher returns?
If you've been asking these questions, you're not alone.
Special Funds have become one of the fastest-growing categories of Collective Investment Schemes (CIS) in Kenya, yet many investors still don't fully understand how they work. In fact, by the end of 2025, Special Funds accounted for 21.5% of Kenya's entire CIS market, with the MansaX Special Fund managing the largest share of assets in this category.
Let's break everything down in simple language.
What Is a Special Fund?
A Special Fund is a Collective Investment Scheme (CIS) that gives investors access to investment strategies or asset classes that are generally more sophisticated than those used by traditional Money Market Funds.
Instead of investing mainly in Treasury Bills and bank deposits like an MMF, a Special Fund may invest across several asset classes depending on its investment mandate.
These may include:
- Kenyan and global equities
- Government and corporate bonds
- Currencies (foreign exchange exposure)
- Commodities
- Listed and unlisted securities
- Alternative investments
- Derivatives and hedging strategies (where permitted by the fund's mandate)
Every Special Fund has its own investment strategy, so investors should always read the fund's information memorandum and fact sheet before investing.
What Is MansaX?
MansaX Special Fund is one of Kenya's largest Special Funds.
It is managed by Standard Investment Bank (SIB) under the Standard Investment Trust Funds (SITF) umbrella and is regulated by the Capital Markets Authority (CMA).
It is available in both Kenya Shilling (KES) and US Dollar (USD) denominations. (SIB - Standard Investment Bank)
Unlike a Money Market Fund, MansaX describes itself as a multi-asset strategy fund using a long/short investment model designed to seek returns during different market conditions while managing downside risk through portfolio allocation techniques.
Why Are They Called "Special" Funds?
The word "Special" doesn't mean exclusive or secret.
It simply refers to a category of collective investment schemes that follow specialized investment strategies rather than traditional investment approaches.
For example:
- A Money Market Fund focuses on short-term fixed-income instruments.
- An Equity Fund mainly invests in shares.
- A Special Fund has greater flexibility to invest across multiple markets and strategies, depending on its mandate.
How Do Special Funds Make Money?
Returns depend on how the fund's investments perform.
Depending on the fund, returns may come from:
- Capital appreciation
- Bond income
- Dividends
- Interest income
- Currency movements
- Global market opportunities
Unlike fixed deposits, returns are not guaranteed.
If investments perform well, investors may earn attractive returns.
If markets perform poorly, returns may be lower, and in some cases investors may experience losses.
Special Fund vs Money Market Fund
One important takeaway is that higher potential returns usually come with higher investment risk.
| Feature | Special Fund | Money Market Fund |
|---|---|---|
| Main objective | Long-term capital growth | Capital preservation & steady income |
| Investments | Multiple asset classes | Treasury Bills, deposits, short-term securities |
| Risk level | Moderate to high | Low |
| Potential returns | Higher potential | Generally lower but more stable |
| Return guarantee | No | No |
| Suitable for | Investors comfortable with more risk | Conservative investors |
Who Should Consider a Special Fund?
Special Funds may suit investors who:
✅ Have a medium- to long-term investment horizon
✅ Already have an emergency fund
✅ Understand that investment values can rise and fall
✅ Want exposure beyond traditional savings products
They may be less suitable for investors who:
❌ Need immediate access to their money
❌ Cannot tolerate market fluctuations
❌ Want guaranteed returns
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Are Special Funds Regulated?
Yes.
Registered Special Funds in Kenya operate under the supervision of the Capital Markets Authority (CMA) through licensed fund managers.
However, regulation does not guarantee profits or eliminate investment risk. It means the fund must comply with Kenya's regulatory framework for collective investment schemes.
Why Have Special Funds Become Popular?
Several reasons explain their growing popularity.
Many investors are looking for:
- Higher return potential than traditional savings accounts
- Diversified investment portfolios
- Exposure to international markets
- Professional investment management
According to the CMA's Collective Investment Schemes report, Special Funds have become one of the fastest-growing fund categories in Kenya by assets under management.
What Risks Should You Know?
Every investment has risk.
For Special Funds, common risks include:
Market Risk
Asset prices may rise or fall depending on market conditions.
Currency Risk
Funds investing internationally may be affected by exchange rate movements.
Liquidity Risk
Some investments may take longer to sell during difficult market conditions.
Strategy Risk
Different investment strategies perform differently in changing economic environments.
Unlike bank deposits, returns are never guaranteed.
Questions to Ask Before Investing
Before investing in any Special Fund, ask:
- Is the fund regulated by the CMA?
- What assets does it invest in?
- What is the investment objective?
- What are the management and performance fees?
- Is there a minimum investment?
- Is there a lock-in period?
- How often can I withdraw my money?
These questions can help you understand whether the fund matches your financial goals.
Common Misconceptions
"Special Funds are the same as MMFs."
False.
MMFs mainly focus on preserving capital through low-risk, short-term investments, while Special Funds often pursue broader investment opportunities with higher potential risk and return.
"Higher returns are guaranteed."
False.
Past performance does not guarantee future performance.
"All Special Funds invest in exactly the same assets."
False.
Each Special Fund follows its own investment strategy and mandate.
The Bottom Line
Special Funds like MansaX offer Kenyan investors access to professionally managed, diversified investment strategies that go beyond traditional savings products and Money Market Funds.
They may provide greater long-term growth opportunities, but they also expose investors to higher levels of market risk.
That is why they are generally better suited to investors who understand that returns can fluctuate and who are investing with a medium- to long-term perspective.
Before investing, always read the fund's official fact sheet, understand the investment strategy, review the fees, and confirm that the fund is regulated by the Capital Markets Authority.
Remember:
A Special Fund is not "better" than a Money Market Fund—it simply serves a different investment purpose. The right choice depends on your financial goals, risk tolerance, and investment timeline.
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