In a volatile global economy where currency depreciation can quietly erode wealth, savvy investors are turning to dollar-based assets as a store of value. The NCBA Dollar Fixed Income Fund stands out as one of Kenya’s most reliable USD-denominated collective investment schemes.
Managed by NCBA Investment Bank, this fund pools investor capital. It allocates it into high-quality, low-risk, dollar-denominated instruments such as Eurobonds, sovereign notes, and fixed deposits with reputable global and regional banks.
Its design is deliberate — to deliver stability, income consistency, and capital protection while granting investors exposure to the world’s most stable currency. For anyone earning, saving, or planning expenses in USD, this fund offers an efficient and regulated vehicle to grow wealth without incurring unnecessary market risk.
Fund Overview
| Fund Name | NCBA Dollar Fixed Income Fund |
| Fund Manager | NCBA Investment Bank Ltd |
| Fund Type | Fixed Income Fund (USD-denominated) |
| Trustee | Kenya Commercial Bank (KCB) |
| Custodian | Stanbic Bank Kenya Ltd |
| Auditor | PwC Kenya |
| Regulator | Capital Markets Authority (CMA) |
| Reporting Currency | US Dollar (USD) |
| Launch Year | 2021 |
As of June 30, 2025, the NCBA Dollar Fixed Income Fund managed an AUM of Ksh 6.6 billion, according to the Capital Markets Authority’s Q2 2025 Collective Investment Schemes Report.
This firmly places it among Kenya’s leading dollar-denominated funds and within the top five in the Fixed Income Fund category, commanding 6.2% market share of the segment.
NCBA Investment Bank continues to demonstrate growth momentum across its funds, supported by its deep expertise, strong governance, and prudent risk management culture — attributes that inspire investor confidence and long-term sustainability.
Investment Objective
The NCBA Dollar Fixed Income Fund aims to provide steady income and wealth preservation in USD.
Its core objectives are to:
- Preserve investors’ capital in hard currency
- Generate stable, predictable returns above traditional USD bank deposit rates
- Maintain liquidity to allow flexible access to invested funds
- Offer an institutional-grade, regulated platform for USD investment diversification
This fund is best suited for investors seeking a stable income stream without exposure to the volatility of equity markets — a true “income anchor” in any diversified portfolio.
Asset Allocation and Investment Strategy
The fund employs a disciplined and conservative investment strategy, targeting high-credit-quality issuers and short- to medium-term securities.
| Asset Class | Typical Allocation Range |
| USD Treasury Bonds / Eurobonds | 35% – 45% |
| Fixed and Term Deposits | 45% – 55% |
| Cash & Call Deposits | 5% – 10% |
| Offshore Listed Instruments | Up to 5% |
This balanced mix provides an optimal blend of security, income, and liquidity.
By maintaining exposure primarily to government and investment-grade corporate debt, the fund mitigates credit risk while achieving consistent cash flows in USD.
Its offshore component further enhances diversification, providing investors with a subtle touch of global exposure without compromising safety.
Performance Snapshot (as of November 2025)
| Performance Indicator | Value |
| Daily Yield | 3.60% |
| Effective Annual Yield | 3.66% |
| Assets Under Management (AUM) | Ksh 6.6 Billion (≈ USD 50.7 Million) |
| Minimum Initial Investment | USD 1,000 |
| Minimum Top-Up | USD 100 |
| Management Fee | Up to 2.00% p.a. |
| Income Distribution | Quarterly (reinvested or paid out) |
While USD yields globally remain moderate, this fund consistently outperforms standard USD term deposits in Kenyan banks. It’s one of the few vehicles that allows local investors to earn competitive USD returns without the need to open offshore accounts or assume foreign jurisdiction risks.
How the NCBA Dollar Fixed Income Fund Works
When you invest in the NCBA Dollar Fixed Income Fund:
- Your funds are pooled together with those of other investors.
- NCBA Investment Bank deploys this pool into a basket of vetted, USD-denominated fixed-income instruments.
- The fund earns interest income from these securities, which is periodically distributed or reinvested for compound growth.
All fund operations are conducted in accordance withadherence to the Capital Markets Authority’s regulatory framework, ensuring transparency, segregation of assets, and strict compliance with investment guidelines.
This layered structure provides investors with peace of mind, knowing their funds are professionally managed within a secure and monitored environment.
Key Advantages of the NCBA Dollar Fixed Income Fund
a) Currency Protection and Global Exposure
With the shilling’s depreciation trend, this fund allows investors to protect purchasing power by holding USD assets within Kenya’s regulatory framework. It’s an intelligent hedge against exchange rate risk.
b) Capital Preservation
Unlike equities or alternative investments, the fund focuses on preserving capital while earning a steady stream of interest income from low-risk securities.
c) Consistent Cash Flow
Quarterly income distributions give investors predictable earnings — ideal for institutions, retirees, or dollar-based businesses managing cash flow.
d) Daily Liquidity
Investors can access funds conveniently, ensuring flexibility for both short-term parking and long-term planning.
e) Institutional Stewardship
NCBA Investment Bank, one of Kenya’s most reputable fund managers, applies rigorous analysis, credit evaluation, and risk controls — ensuring every dollar is prudently invested.
Comparison: NCBA Dollar Fixed Income Fund vs NCBA Fixed Income Fund (KES)
| Feature | NCBA Dollar Fixed Income Fund | NCBA Fixed Income Fund (KES) |
| Currency | USD | KES |
| AUM (Q2 2025) | Ksh 6.6 Billion | Ksh 34.2 Billion |
| Market Share (FIF Segment) | 6.2% | 32.4% |
| Daily Yield (Nov 2025) | 3.60% | 7.55% |
| Effective Annual Yield | 3.66% | 7.82% |
| Minimum Investment | USD 1,000 | Ksh 1,000 |
| Ideal For | Investors seeking USD returns and global diversification | Investors seeking higher shilling-based income |
While the KES fund offers higher nominal yields due to local interest rate dynamics, the USD fund provides currency stability and protection from domestic inflation and depreciation pressures.
Savvy investors often hold both funds simultaneously — one for growth in shillings, the other as a dollar-denominated safety buffer.
Why the NCBA Dollar Fixed Income Fund Stands Out
- Currency Diversification: Reduces overexposure to the weakening shilling and aligns portfolios with global benchmarks.
- Regulated Safety: CMA oversight, third-party custody, and trustee governance ensure investor protection.
- Professional Management: Access to NCBA’s deep credit research, portfolio analytics, and disciplined asset selection.
- Accessibility: Entry-level investment of USD 1,000 makes it practical for both individuals and corporations.
- Liquidity and Transparency: Daily pricing and easy redemption ensure flexibility without penalty.
For investors with international financial goals, dollar-denominated expenses, or offshore ambitions, this fund bridges local convenience with global currency resilience.
How to Invest
Investing is straightforward:
- Visit NCBA Investment Bank’s Wealth Management Portal.
- Select “NCBA Dollar Fixed Income Fund” under Unit Trust Funds.
- Complete the online application and transfer funds in USD.
Existing NCBA clients can seamlessly link their fund investment to their NCBA USD account for automatic top-ups and withdrawals.
Investors can also engage NCBA wealth advisors for tailored investment allocation strategies.
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Frequently Asked Questions
What is the minimum amount required?
The minimum initial investment is USD 1,000, with flexible top-ups starting from USD 100.
How are returns paid out?
Income is distributed quarterly, either credited to your account or reinvested to enhance compounding.
Can I withdraw my money anytime?
Yes. The fund offers daily liquidity, allowing redemptions with minimal notice.
Is this a risky investment?
No. It is a low to moderate-risk investment, backed by government and investment-grade securities.
Who regulates this fund?
The Capital Markets Authority (CMA) regulates all NCBA funds, ensuring compliance, safety, and transparency.
Final Thoughts
The NCBA Dollar Fixed Income Fund is not just another dollar fund — it is a strategic wealth preservation tool for both local and international investors.
It combines the stability of the USD, the security of fixed-income assets, and the governance strength of NCBA Investment Bank to create a reliable haven for steady returns.
For investors seeking to diversify currency exposure, safeguard dollar earnings, or plan long-term USD goals such as overseas education, imports, or travel, this fund offers a professionally managed, low-risk pathway.
In an era where financial resilience demands smart diversification, the NCBA Dollar Fixed Income Fund remains a benchmark for disciplined dollar investing in Kenya’s growing fund market.
