The Oak Special Fund, managed by Faida Investment Bank, has reached a significant milestone by surpassing KES 1 billion (approximately $7.7 million) in assets under management (AUM). This remarkable achievement comes less than a year after the fund’s inception, marking a testament to the bank’s innovative investment strategies and growing client confidence.
Launched with a vision to provide high-yield investment opportunities to its clients, the Oak Special Fund has rapidly become a leading choice in Kenya’s investment landscape. The milestone highlights the institution’s ability to deliver competitive returns while maintaining a strong focus on transparency and investor satisfaction.
“We are proud to announce that the Oak Special Fund by Faida Investment Bank has surpassed KES 1,000,000,000 (1 Billion) in Assets Under Management. This milestone marks a significant achievement for our institution and reflects the dedication, hard work, and commitment of the entire Faida team,” said Faida Investment Bank in a statement.
The Q1 Collective Investment Schemes report by the Capital Markets Authority (CMA) revealed a 6% growth in Assets Under Management (AUM) for money market funds, increasing from Ksh 140 billion in December 2023 to Ksh 148 billion in March 2024.
This growth has been attributed to the entry of new players in the market, who are rapidly gaining traction, alongside the digitization of financial products. These advancements have made investing more accessible and convenient, appealing to a wider, tech-savvy investor demographic.
A Collective Investment Scheme (CIS) is a Financial Vehicle that pools funds from multiple investors and invests them across a diverse range of assets, with the portfolio managed collectively by a professional fund manager. Returns from these instruments are influenced by prevailing market interest rates, which in turn determine the overall returns generated by money market funds.
An active investor with the time, expertise, and knowledge to identify optimal short-term debt instruments offering favorable interest rates aligned with their preferred risk level may choose to invest independently in the various available options.
Since the personnel working behind the scenes are thoroughly scrutinized, you can rest assured that the fund and your money are safe. As a safety guarantee, every fund is required to have a trustee who oversees running the fund. Although there are risks with every investment, the Capital Markets Authority (CMA) makes sure that fund managers don’t take lethal risks with unit trust.
The Oak Special Fund’s success is underpinned by its strategic focus on diversified investments, offering clients a secure yet profitable avenue to grow their wealth. Faida Investment Bank’s commitment to ethical investment practices and its emphasis on tailored financial solutions have played a crucial role in attracting investors from diverse sectors.
As Kenya’s financial markets continue to evolve, the Oak Special Fund’s accomplishment demonstrates the growing demand for innovative and reliable investment options. The fund’s strong performance resonates with the increasing number of investors seeking stability and growth in a challenging economic environment.
Surpassing the KES 1 billion mark positions the Oak Special Fund among the top-performing funds in the region. It also highlights the potential of Kenya’s investment sector to compete on a global stage.
“We also owe this success to the trust and confidence of our valued clients. Your unwavering support has been instrumental in achieving this milestone. At Faida Investment Bank, we are committed to delivering innovative, transparent, and impactful investment solutions that help you achieve your financial goals.” The statement added.
The milestone reflects positively on Kenya’s capital markets, showcasing their resilience and capacity to attract significant investments despite global economic uncertainties. The success of the Oak Special Fund could inspire similar initiatives in the country, further solidifying Nairobi’s position as a key financial hub in Africa.
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