Arvocap Almasi Fixed Income Accumulation Fund has disrupted the market and delivered what most investors only dream of.
Just look at these returns:
- January–31st October 2025: 18.93%
- Last 12 Months: 23.92%
- Inception to Date: 38.36%
These numbers are not normal. They are extraordinary.
So, let’s break down what makes Almasi Fund one of the most aggressively performing fixed-income funds in Kenya.
What Exactly Is the Almasi Fund?
The Almasi Fund is managed by Arvocap Asset Managers Ltd, regulated by the Capital Markets Authority (CMA) under the Collective Investment Schemes (CIS) structure.
Its core mandate is simple: Achieve long-term capital appreciation through active fixed-income investing.
Fund Objective
To grow your capital by investing in:
- Kenyan Government Bonds
- Treasury Bills
- Qualifying Corporate Fixed Income (corporate bonds, commercial papers)
- Select Fixed Deposits, Unlisted Securities, Cash and Demand Deposits
This is not a passive fund. It is an active bonds-trading fund — and this is where the magic happens.
Where Does the Fund Invest?
As at 30th September 2025:
- Government Bonds: 88.96%
- Corporate Bonds: 1.09%
- Term Deposits: 5.48%
- Cash: 4.47%
This heavy government bond allocation gives stability. The active trading gives superior returns.
What Makes Almasi Different From Other Fixed-Income Funds?
Most fixed-income funds simply hold bonds and wait for coupon payments.
Almasi does not.
Instead, it:
- Trades actively in the secondary bond market
- Locks in higher returns from price movements
- Aims to outperform the average bond yields consistently
This active bond trading is the reason Almasi has become an alpha performer.
The Fund’s Benchmark and Hurdle Rate
- Benchmark = Yield to Maturity (YTM) of Kenya’s 5-Year Government Bond
- Hurdle Rate = Benchmark + 200 bps (2%)
Current 5-year bond YTM: ~10.25%
Add 200 bps (2%): 12.25% hurdle rate
Meaning:
Almasi must beat 12.25% to trigger a performance fee — and it has been doing that.
Risk Profile — Category 3 out of 7 (Moderate Risk)
The fund carries medium risk because:
- It invests heavily in government bonds (low-risk)
- But also participates in active trading (market-linked)
- Has some exposure to corporate credit risk
- Is affected by interest rate and bond price movements
Risk rating: 3 out of 7.
Capital Preservation
The fund does not guarantee capital — no CIS does.
But its strategy is designed to:
- Preserve capital
- Grow capital
- Beat benchmark yields consistently
So far, it has delivered exactly that.
Charges
- Entry Fee: 0.5%
- Exit Fee: 0%
- Annual Management Fee: 1%
- Performance Fee: 20% above the hurdle rate
Minimum investment: Ksh 100,000
Minimum top-up: Ksh 100,000
Who Is This Fund Best For?
Perfect for medium to long-term goals like:
- Children’s education
- Buying your home
- Retirement nest egg
- Car purchase
- Long-term investment projects
If you want a powerful alternative to long-term government bonds, this fund fits that gap beautifully.
My Final Thought
Arvocap Almasi Fund is rewriting the script for fixed-income performance in Kenya.
If you want a fund that blends stability, intelligent active trading, and above-market returns, this is a solid option.
Alex Mwangi | WhatsApp 0703472299
Open Your Arvocap MMF here: https://shorturl.at/cpjsP
