When you think about building wealth that lasts for decades, not months, your strategy must shift from short-term gains to long-term compounding. The Arvocap Almasi Fixed Income Accumulation Fund is one of the few fixed-income products in Kenya engineered specifically for disciplined, patient investors who want their money to grow steadily, quietly, and consistently over time.
This fund differs from typical fixed-income products, which typically pay a monthly income. Instead, it reinvests every interest payment, every gain, and every return into the fund.
Nothing leaves the portfolio. Nothing slows down the compounding effect. This design makes it an ideal vehicle for investors seeking to build retirement wealth, create a legacy, fund education, establish trust funds, or achieve long-term financial goals.
Powered by Arvocap Asset Managers — a regulated and research-driven investment firm — the Almasi Fund is built on transparency, risk discipline, and a strong commitment to long-term capital appreciation.
Whether you are a professional planning ahead, a parent building generational wealth, or an investor seeking a reliable conservative compounding vehicle, this guide breaks down exactly why this fund is worth considering.
Key Takeaways:
- Exceptional Performance: 25.15% return over 12 months, 36.99% since inception
- Conservative Strategy: 89% allocation to government securities
- Full Accumulation: All returns reinvested for maximum compounding
- Professional Management: Active bond trading to capture market opportunities
- Strong Governance: Regulated by CMA, overseen by NCBA Trustees and Bank
- Disciplined Approach: 6-month lock-in period aligns with long-term objectives
- Moderate Risk: Category 3 rating balances safety and growth potential
- Premium Product: KES 100,000 minimum for serious investors
- Competitive Fees: 1% management fee + performance fee only above hurdle
- Proven Track Record: Strong performance since June 2024 inception
What Is the Arvocap Almasi Fixed Income Accumulation Fund?
The Arvocap Almasi Fixed Income Accumulation Fund is a Kenya Shilling–denominated unit trust designed to build long-term wealth through investments in government bonds, treasury bills, term deposits, and qualifying corporate fixed-income products.
It is an accumulation fund, meaning all returns — including interest income — are automatically reinvested to drive continuous compounding.
The fund is suitable for investors who prioritize long-term growth over short-term returns and seek a conservative yet performance-focused fixed-income solution with a recommended investment horizon of 5 years or more.
Fund Overview
| Key Item | Detail |
| Fund Name | Arvocap Almasi Fixed Income Accumulation Fund |
| Fund Structure | Unit Trust (NAV-based) |
| Inception Date | 3rd June 2024 |
| Domicile | Kenya |
| Currency | Kenyan Shilling (KES) |
| Fund Size (AUM) | KES 4.873 Billion |
| Minimum Investment | KES 100,000 |
| Minimum Top-Up | KES 100,000 |
| Top-Up Frequency | Flexible |
| Lock-in Period | 6 months |
| Annual Management Fee | 1.0% (prorated daily, paid quarterly in arrears) |
| Initial Fee | 0.5% (included in NAV calculation) |
| Performance Fee | 20% above hurdle rate |
| Hurdle Rate | 5-Year Government Bond YTM + 200bps (2%) |
| Benchmark | Yield to Maturity of Kenya 5-Year Government Bond |
| Risk Category | 3 out of 7 (Moderate Risk) |
| Recommended Time Horizon | 5 years and above |
| Custodian | NCBA Bank PLC |
| Trustee | NCBA Trustees |
| Auditor | King’ori Kamau & Company (CPA-K) |
| Regulator | Capital Markets Authority (License No. 190) |
This summary reflects a fund specifically designed for serious long-term investors, given its minimum investment threshold, lock-in period, and emphasis on capital accumulation.
Investment Objective and Strategy
The Arvocap Almasi Fund has a single, clear objective: to achieve long-term capital appreciation through disciplined fixed-income investing and consistent compounding.
To achieve this objective, the fund follows these strategic pillars:
1. Heavy Allocation to Government Securities
Government bonds and treasury bills form the backbone of the portfolio. These instruments are considered the safest fixed-income assets in Kenya due to government backing. They provide:
- Predictable interest payments
- Low credit risk
- Strong liquidity
- Stable price behaviour
This stability anchors the entire portfolio and limits downside volatility. The fund has no limits on investments in government bonds and treasury bills issued by the Government of Kenya.
2. Qualifying Corporate Fixed-Income Investments
The fund also invests in:
- Corporate bonds
- Commercial papers
- Term deposits
These instruments are vetted through strict investment thesis protocols to ensure creditworthiness and provide enhanced yields. They help the fund outperform standard government-only fixed-income portfolios without significantly increasing risk.
Investment Limits:
- Maximum 25% of net asset value in any single bond or security
- Maximum 25% of net asset value in corporate bonds/commercial papers from any single issuer
- 5% allowance for breaches due to portfolio appreciation
3. Active Management of Duration and Holdings
The Almasi Fund does not passively hold bonds until maturity. Its managers:
- Actively trade government securities
- Adjust duration based on market trends
- Capitalize on yield opportunities
- Rebalance positions to maintain alignment with interest rate cycles
- Manage liquidity to ensure smooth fund operations
This active approach is a key driver behind the fund’s performance, aiming to achieve returns above average bond yields.
4. Full Accumulation Through Automatic Reinvestment
Unlike distribution-style funds, which pay out income to investors, the Almasi Fund reinvests every return into the portfolio. This leads to uninterrupted compounding, which accelerates long-term growth, especially for investors with longer investment horizons.
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Holdings and Portfolio Composition
The fund’s portfolio allocation reflects a conservative approach optimized for safety and accumulation.
Target Asset Allocation
| Asset Class | Target Allocation | Asset Allocation Range | CIS Upper Limits |
| Government Securities | 75% | 60% – 100% | 100% |
| Fixed Deposits | 7.5% | 0% – 100% | 100% |
| Listed Corporate Bonds | 7.5% | 0% – 80% | 80% |
| Unlisted Securities | 5% | 0% – 25% | 25% |
| Cash and Demand Deposits | 5% | 2.5% – 50% | 100% |
Current Holdings (September 2025)
| Asset Class | Allocation |
| Government Bonds | 88.96% |
| Corporate Bonds | 1.09% |
| Term Deposits | 5.48% |
| Cash | 4.47% |
This allocation offers a strong balance of:
- Stability
- Liquidity
- Consistent returns
- Low volatility
The dominance of government securities ensures that capital is protected while still yielding attractive interest rates.
Performance Review
Since launch in June 2024, the Arvocap Almasi Fund has delivered exceptional performance, demonstrating the power of active fixed-income management combined with full accumulation.
Latest Performance Metrics (September 2025)
- NAV Price: 1.3699
- Quarter to Date (QTD): 5.28%
- Year to Date (YTD): 17.17%
- Last 12 Months: 25.15% (net of management fees)
All returns are net of management fees, excluding performance fees
Growth Example
A KES 1,000,000 investment on 3rd June 2024 grew to:
KES 1,363,100 by 30th September 2025
This represents a gain of KES 363,100 (36.31% return) in just 16 months, net of management fees.
This level of growth from a conservative fixed-income accumulation vehicle is impressive, highlighting the effectiveness of:
- Active bond trading strategies
- Continuous compounding
- Professional portfolio management
- Market opportunity capture
NAV Growth Trajectory
The Net Asset Value has shown consistent growth:
- NAV at launch (June 2024): 1.0000
- NAV at September 2025: 1.3699
- Total Growth: 36.99%
This reflects continuous and disciplined compounding, demonstrating the fund’s ability to deliver on its capital appreciation objective.
Why the Arvocap Almasi Fixed Income Accumulation Fund Excels in Long-Term Wealth Accumulation
Below are the core reasons why this fund is powerful for long-term investors:
1. Full Compounding Without Interruptions
Since the fund reinvests all returns, investors benefit from the exponential effect of compounding. This is critical in wealth-building because it ensures that each return generates additional returns in the future.
2. Active Bond Strategies That Capture Market Opportunities
By actively buying and selling government securities, the fund locks in gains, exploits yield spreads, and optimizes average returns. This is a significant advantage over passive fixed-income investments.
3. Conservative Structure That Minimizes Risk
With approximately 89% of its assets allocated to government securities, the fund offers stability and safety. This structure protects investors from unexpected shocks and ensures steady progress.
4. Competitive Fees That Enhance Net Returns
The fund charges:
- 1.0% management fee (prorated daily, paid quarterly in arrears)
- 0.5% initial fee (included in NAV price calculation at purchase)
- Performance fee only when returns exceed the hurdle rate (5-year bond YTM + 2%)
This fee structure aligns the fund manager’s interests with investor returns, as the performance fee is only charged on exceptional performance.
5. Professional Governance and Compliance
The fund is backed by:
- NCBA Trustees (trustee oversight)
- NCBA Bank PLC (custodian services)
- King’ori Kamau & Company (independent auditors)
- Capital Markets Authority (regulatory oversight)
This strong governance reduces operational risk and enhances investor confidence.
6. Designed for Long-Term Investors Who Want Predictability
This fund is built for investors who value:
- Stability
- Safety
- Long-term consistency
- Passive compounding
- Professional oversight
- Capital preservation with growth
It is not built for speculators or short-term traders.
7. 6-Month Lock-in Period Encourages Discipline
The fund has a 6-month lock-in period on all new investments, which:
- Encourages long-term thinking
- Reduces turnover costs
- Allows the fund manager to optimize strategies
- Protects existing investors from frequent withdrawals
- Aligns investor behavior with fund objectives
Risk Profile: Category 3 (Moderate Risk)
The Arvocap Almasi Fund is classified as Risk Category 3 out of 7 on the Synthetic Risk and Reward Indicator (SRRI).
What This Means
This rating indicates:
- Lower risk than equity or aggressive growth funds
- Moderate risk due to fixed-income exposure
- Potential for some capital fluctuation
- Balance between safety and return potential
Primary Investment Risks
1. Interest Rate Risk
Changes in interest rates affect the value of fixed-income securities. Rising rates can temporarily reduce bond prices, though the fund’s active management helps mitigate this through duration adjustments.
2. Credit Risk
Potential for investment losses from changes in credit ratings or defaults by issuers. The fund mitigates this through:
- Heavy allocation to government securities
- Thorough credit analysis for corporate bonds
- Diversification across issuers (max 25% per issuer)
3. Liquidity Risk
Difficulty in meeting short-term obligations or liquidating assets quickly without loss. The fund maintains adequate liquidity through:
- Cash reserves (2.5-50% allocation range)
- Liquidity gap analysis
- Stress testing
4. Market Risk
Potential losses from market fluctuations. Mitigation strategies include:
- Diversification across asset types
- Hedging techniques
- Comprehensive market analysis
5. Inflation Risk
Erosion of purchasing power due to rising inflation. The fund addresses this through:
- Active yield management
- Duration strategies
- Selection of inflation-resistant instruments
6. Seniority Risk
Lower priority in repayment if a default occurs with structured debt. Mitigated through:
- Thorough due diligence on debt structures
- Diversification
- Credit quality evaluation
Risk Mitigation Approach
The fund’s risk is well-managed because of these reasons:
- Monthly reporting to unit holders
- Over 88% is in government securities (lowest credit risk)
- Professional oversight from trustees and custodian
- Regular monitoring and rebalancing
- Strict investment limits and protocols
Investor Suitability – Who Should Invest in the Arvocap Almasi Fixed Income Accumulation Fund?
The Arvocap Almasi Fund is ideal for individuals seeking to build long-term wealth who appreciate a disciplined investment approach.
This Fund is Perfect For:
- Retirement planners building a nest egg for the future
- Parents creating education or generational wealth funds
- Professionals with long-term savings goals
- Conservative investors preferring low-risk, high-consistency assets
- Individuals seeking stable, predictable growth
- Business owners investing surplus funds for future use
- Estate planners building legacy wealth
- People who understand the power of compounding
- Investors with 5+ year horizons who can commit capital
This Fund is NOT Ideal For:
- Investors seeking monthly income payouts
- People needing short-term access to capital (due to 6-month lock-in)
- High-risk investors seeking aggressive growth
- Individuals unable to meet the KES 100,000 minimum
- Speculators or short-term traders
- Investors uncomfortable with moderate risk exposure
This clarity helps investors align expectations with outcomes and ensures the right fit.
How the Arvocap Almasi Fixed Income Accumulation Fund Compares to Others
Here is a strategic, investor-friendly comparison:
| Fund | Type | Strategy | Recent Performance | Minimum Investment | Risk Level |
| Arvocap Almasi (Accumulation) | Fixed Income | Active, reinvesting | 25.15% (12 months) | 100,000 | 3/7 (Moderate) |
| Britam Bond Plus Fund | Fixed Income | Conservative | ~12-14% | 5,000 | Low-Moderate |
| Zimele Fixed Income Fund | Fixed Income | Balanced | ~10-12% | 10,000 | Low-Moderate |
| Nabo KES Fixed Income Fund | Fixed Income | Conservative | ~9-11% | 5,000 | Low |
From this comparison, it is evident that:
- Arvocap Almasi is a premium product with higher barriers to entry
- It targets long-term compounding rather than income distribution
- It demands discipline through its lock-in period
- It rewards patience with superior returns
- It outperforms many competitors in growth-focused fixed-income investing
- Its active management delivers measurable alpha over passive strategies
Arvocap Almasi Fixed Income Accumulation Fund Fee Structure Explained
Understanding the fee structure helps you calculate your net returns accurately.
1. Initial Fee: 0.5%
- Charged on all new invested amounts
- Included in the NAV price calculation when purchasing units
- Charged in advance at the point of investment
- Example: On KES 100,000 investment, KES 500 is the initial fee
2. Annual Management Fee: 1.0%
- Calculated on average Assets Under Management
- Prorated daily but payable quarterly in arrears
- Reflects the cost of professional management, research, and administration
- Investors exiting before the next quarterly charge date will be charged accrued fees
3. Performance Fee: 20%
- Charged only on returns above the hurdle rate
- Hurdle rate: YTM of 5-year government bond + 200bps (2%)
- Calculated and charged at the end of each calendar year
- Investors leaving mid-year have performance fee calculated from January 1st (or investment date if later)
- Only charged if performance is positive for the period
This fee structure ensures:
- Alignment of interests between fund manager and investors
- Competitive base fees
- Performance incentives tied to exceptional results
- Transparency in cost structure
How to Invest in the Arvocap Almasi Fixed Income Accumulation Fund
Investing is simple and structured:
- Visit the Arvocap Asset Managers
- Follow the applicable steps to open an investment account
- Complete KYC (Know Your Customer) verification
- Deposit the minimum KES 100,000
- Set up flexible top-ups of at least KES 100,000 when desired
- Track your performance monthly via fact sheets published on the website
You can sell your shares on any day (except Saturdays or Sundays) that banks are open in Nairobi, Kenya, subject to the 6-month lock-in period for new investments.
Transparency and Reporting
The fund prioritizes transparency through:
Monthly Reporting
- Comprehensive fact sheets showing performance, holdings, and NAV
- Portfolio composition updates
- Market commentary and outlook
Annual Reports
- Audited financial statements
- Detailed performance analysis
- Fund manager commentary
Access to Information
- Real-time NAV pricing
- Online account access
- Dedicated investor relations support
- Regular communication on significant developments
This commitment to transparency builds trust and keeps investors informed about their wealth accumulation journey.
Frequently Asked Questions
What is the Arvocap Almasi Fixed Income Accumulation Fund?
The Arvocap Almasi Fixed Income Accumulation Fund is a long-term investment fund that reinvests all earnings to grow investor capital steadily through fixed-income instruments. It is designed for wealth builders who value compounding over monthly income payouts. Its structure ensures that every return increases your long-term wealth potential.
Is the Arvocap Almasi Fixed Income Accumulation Fund safe?
The fund is classified as Category 3 (moderate risk) due to its significant allocation to government securities and strict adherence to CMA regulations. It employs strong governance through NCBA Trustees and NCBA Bank as custodian. While all investments carry some risk, the fund’s conservative structure minimizes volatility and protects capital while pursuing growth.
What returns has the Arvocap Almasi Fixed Income Accumulation Fund delivered?
The fund has delivered a 25.15% return over the past 12 months (net of management fees, excluding performance fees). Since inception in June 2024, it has achieved a 36.99% NAV growth, with a current NAV of 1.3699. This performance reflects both active management and disciplined compounding.
What is the minimum investment for the Arvocap Almasi Fixed Income Accumulation Fund?
The minimum investment is KES 100,000, positioning the fund as a premium long-term investment product. Additional top-ups also require KES 100,000, helping investors maintain focus on accumulation and quality participation.
Does the Arvocap Almasi Fixed Income Accumulation Fund pay a monthly income?
No. The fund is strictly an accumulation vehicle. All interest and returns are automatically reinvested into new units to maximize long-term compounding. This makes it ideal for investors who prefer wealth growth over immediate cash flow.
What is the lock-in period?
The fund has a 6-month lock-in period for all new investments. This means you cannot redeem your investment within the first 6 months. This policy encourages long-term thinking and allows the fund manager to optimize investment strategies without pressure from short-term withdrawals.
Who is the Arvocap Almasi Fixed Income Fund best suited for?
It is best suited for long-term investors with a 5+ year horizon, including professionals, parents building education funds, retirement planners, and anyone creating generational wealth. Its conservative structure also makes it appropriate for risk-sensitive investors who want stability with attractive returns.
How liquid is the Arvocap Almasi Fixed Income Accumulation Fund?
The fund maintains sufficient liquidity through cash reserves and term deposits. However, it is designed for long-term investment (recommended 5+ years), not frequent withdrawals. You can redeem units after the 6-month lock-in period on any business day when banks are open in Nairobi.
What is the hurdle rate for performance fees?
The hurdle rate is the Yield to Maturity (YTM) of the 5-year Kenya Government Bond + 200 basis points (2%). The fund only charges a 20% performance fee on returns exceeding this hurdle, ensuring that fees are only paid when the fund delivers exceptional performance.
How is the fund regulated?
The fund is established under the Capital Markets (Collective Investment Schemes) Regulations 2023 and is regulated by the Capital Markets Authority of Kenya. Arvocap Asset Managers holds license number 190. The fund also has independent oversight from NCBA Trustees and NCBA Bank PLC as custodian.
Can I add more money after my initial investment?
Yes, you can make additional top-ups at any time. The minimum top-up amount is KES 100,000, and you can contribute as frequently as you wish. Regular top-ups enhance the compounding effect and accelerate your wealth accumulation.
What benchmark does the fund use?
The fund’s benchmark is the Yield to Maturity (YTM) of the Kenya Government 5-year bond. This benchmark reflects the fund’s focus on medium-term fixed-income instruments and provides a relevant performance comparison.
Conclusion
The Arvocap Almasi Fixed Income Accumulation Fund stands out as one of the most effective long-term wealth-building tools in the Kenyan fixed-income market. Its combination of conservative holdings, active management, disciplined reinvestment, strong governance, and proven performance creates a powerful foundation for stable and predictable capital growth.
If your goal is long-term financial security, retirement planning, legacy building, or disciplined wealth accumulation with a 5+ year horizon, the Arvocap Almasi Fixed Income Accumulation Fund deserves a primary place in your investment portfolio.
It rewards consistency. It rewards patience. And most importantly, it rewards the commitment to grow wealth the right way—through the power of compounding, professional management, and disciplined investing.
Ready to start your wealth accumulation journey?
Get started with the Arvocap Almasi Fixed Income Fund today!
