Britam Special Funds: What to Know Before Investing in Global Equities and Multi-Asset Funds

You may use global technology every day, from smartphones and cloud services to artificial intelligence tools, without owning a stake in the companies behind them.

For Kenyan investors looking beyond local shares, bonds and cash investments, Britam’s Enhanced Global Equities Special Fund and Multi-Asset Special Fund offer access to different markets through professionally managed portfolios.

The difference lies in where the money goes, how much you need to start and the risks you are prepared to take.

Let’s take a peek at the two Britam products.

Enhanced Global Equities: Investing in global companies

The Enhanced Global Equities Special Fund focuses on international shares, particularly businesses involved in artificial intelligence, semiconductors, cloud computing and automation.

Its investment universe includes companies such as NVIDIA, Alphabet, Taiwan Semiconductor Manufacturing Company and Broadcom.

The fund also seeks opportunities in sectors such as healthcare, life sciences, energy and the digital economy.

Instead of selecting individual foreign shares, investors gain exposure through a professionally managed portfolio. The minimum initial investment is $2,000 with additional contributions from $1,000.

The actual shilling amount can vary because the fund is US-dollar-based, although contributions can be made in Kenyan shillings or US dollars.

A separate US-dollar bank account is not required to contribute in shillings. The fund is designed for long-term growth, with a recommended investment period of at least five years.

Dividends are reinvested rather than paid out as regular income.

A performance fee of 10% also applies to returns above the S&P 500 benchmark, subject to the fund’s applicable terms.

There is an initial six-month lock-in period.

Early redemption during this period attracts a 5% withdrawal fee, while withdrawals after the lock-in period do not attract a withdrawal fee under the published terms.

The main risks include falling share prices, company-specific setbacks, global economic changes and currency movements.

A stronger US dollar can increase the shilling value of an investment, while a stronger shilling can reduce it.

The fund is not capital-protected, and investors can lose money depending on market volatility.

Multi-Asset Special Fund: Spreading investments

The Multi-Asset Special Fund takes a broader approach by combining investments across local and international markets.

Its portfolio can include government bonds, international bonds, local and global equities, commodities and currencies.

Bonds may generate interest income, while shares offer exposure to company performance.

Commodities and currencies respond to other market forces.

Combining these assets gives the fund several potential sources of return rather than relying on one market or investment type.

The minimum initial investment is Sh500,000, with additional contributions from Sh250,000.

The fund is denominated in Kenyan shillings and is designed for investors with a recommended investment horizon of three years or longer. Income and gains are reinvested.

Its target is a return of 15% per year, net of fees, over rolling three-year periods. This is a target, not a guarantee of what an investor will earn in any particular year.

The investment can lose value, and an investor may receive less than the original amount. The fund can use long and short positions, derivatives and leverage.

Long positions seek to benefit from rising prices, while short positions seek to benefit from falling prices. Leverage increases market exposure and can magnify both gains and losses.

The Global Equities Special Fund is aimed at investors seeking long-term exposure to international companies, with a particular focus on technology and innovation.

Its five-year-or-longer horizon means it is better suited to long-term goals than money needed soon.

The Multi-Asset Special Fund offers broader exposure across asset classes and markets.

It may suit investors who want diversification through one portfolio and can tolerate fluctuations in value, including risks arising from leverage.

Both funds operate under Capital Markets Authority regulation, with Standard Chartered Bank Kenya serving as trustee and custodian.

Regulatory oversight does not guarantee returns or eliminate investment risk.

Before choosing either fund, consider how long you can leave your money invested, the fees involved, the conditions for accessing your funds and how much loss you could withstand.

Explore the Enhanced Global Equities Special Fund or the Multi-Asset Special Fund here.

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