In a time marked by global interest rate shifts, inflationary pressures, exchange rate volatility, and an increased appetite for dollar-denominated assets, investors are seeking stability beyond Kenya’s borders. One of the most strategic moves an investor can make today is to diversify into USD-based fixed-income instruments.
The Stanbic Fixed Income Fund (USD) stands out as one of the most accessible, professionally managed, low-entry USD fixed-income funds available to Kenyan and regional investors. Managed by SBG Securities Limited, it provides a conservative approach to accessing global fixed-income opportunities, eliminating the need for substantial capital outlays or complex offshore investment processes.
Whether you are a professional seeking currency diversification, a business looking for a USD reserve strategy, a parent saving for international education, or an investor seeking passive income in USD, this fund offers clarity, structure, and stable returns.
This guide breaks down everything you need to know about the Stanbic USD Fixed Income Fund — its yields, structure, strategy, performance, fees, holdings, investor suitability, and how to get started.
Let’s dive in.
What Is the Stanbic Fixed Income Fund (USD)?
The Stanbic Fixed Income Fund (USD) is a moderate-risk, USD-denominated fixed-income unit trust that invests in Eurobonds, USD time deposits, and offshore fixed-income securities to deliver stable income and capital preservation.
It is designed for investors who want:
- USD-based income
- Currency diversification
- Protection from shilling volatility
- Exposure to global and regional fixed-income assets
- A stable, predictable, and conservative investment vehicle
The fund distributes income monthly and offers a straightforward entry path into USD-denominated assets, with a minimum investment of just USD 100.
Fund Overview
| Item | Detail |
| Fund Name | Stanbic Fixed Income Fund (USD) |
| Fund Manager | SBG Securities Limited |
| Launch Date | July 2024 |
| Currency | United States Dollar (USD) |
| Trustee | KCB Bank Kenya Limited |
| Custodian | Standard Chartered Bank Kenya Limited |
| Auditor | Deloitte Kenya |
| Minimum Investment | USD 100 |
| Minimum Top-Up | USD 100 |
| Management Fee | 1% p.a. + VAT |
| Benchmark | 180-Day Average SOFR |
| Fund Size (AUM) | USD 16.84 Million |
This table gives a clear snapshot of a professionally structured, well-governed USD investment vehicle accessible to everyday investors.
Investment Objective and Policy
The Stanbic USD Fixed Income Fund aims to deliver:
- Stable USD-denominated income
- Capital preservation
- Consistent growth
- Access to offshore fixed-income assets
- Currency diversification benefits
The core of its investment strategy is to allocate funds across USD fixed-income securities, including:
- Sovereign and corporate Eurobonds
- Global fixed-time deposits
- Offshore liquidity instruments
- USD-denominated fixed-income products from stable markets
This approach combines stability and income generation, enabling investors to capitalize on global market trends.
The strategy is ideal for individuals, corporations, NGOs, and institutions that require exposure to USD without the need for complex offshore portfolio management.
Asset Allocation Breakdown
The October 2025 factsheet provides a clear picture of how the portfolio is diversified.
| Asset Class | Allocation |
| Fixed Treasury Bonds (Eurobonds) | 50.89% |
| Fixed Time Deposits | 42.69% |
| Call Deposits | 6.41% |
| Cash | 0.00% |
This allocation demonstrates a conservative but income-focused structure.
Eurobonds (50.89%)
Eurobonds provide:
- Higher yields than local USD deposits
- Medium-term income stability
- Exposure to global interest rate cycles
- Diversified sovereign issuers
This is the core engine of yield generation.
Fixed Time Deposits (42.69%)
These deliver:
- Stable interest
- Low volatility
- Strong capital preservation
They play a stabilization role, balancing the portfolio.
Call Deposits (6.41%)
These ensure sufficient liquidity, enabling the fund to meet redemptions and reposition quickly as markets shift.
Performance Overview
The Stanbic USD Fixed Income Fund has shown strong consistency since its launch. Here is the performance summary:
| Period | Fund Return | Benchmark Return |
| 1 Month (Oct 2025) | 4.87% | 4.36% |
| YTD 2025 | 4.85% | 4.51% |
| Since Inception (2024) | 4.67% | 4.81% |
All returns shown are:
- Net of fees
- Gross of withholding tax (15%)
Interpretation of Returns
The fund consistently performs in line with the benchmark and often outperforms it slightly.
Considering the fund launched in mid-2024, its ability to match global rates is a strong indication of disciplined portfolio construction.
Cumulative Performance
The chart from the factsheet shows:
- Short-term volatility in Eurobond markets from 2024 to 2025
- A stabilizing curve toward late 2025
- Performance aligned with the SOFR benchmark
- Predictable month-to-month movement
This demonstrates that while the fund is conservative, it reflects the normal fluctuation patterns of USD global markets.
Yield Breakdown
1. Monthly Effective Yield
4.87% (Oct 2025)
2. Year-to-Date Yield
4.85%
3. Inception-to-Date Yield
4.67%
4. Yield Characteristics
The yields are:
- Predictable
- Aligned with global USD rates
- Competitive relative to USD bank deposits
- Stable due to diversified holdings
The fund is designed to match or slightly outperform the SOFR-based benchmark while prioritizing capital protection.
Fund Strategy and Portfolio Management Approach
The Stanbic USD Fixed Income Fund follows a disciplined strategy structured around three pillars:
1. Currency Diversification
The fund is ideal for investors seeking to protect themselves from KES depreciation. Holding part of your wealth in USD provides a hedge, especially during periods of shilling volatility.
2. Offshore Exposure Without Complexity
Eurobond and offshore markets can be complex to access independently.
This fund simplifies everything through:
- Professional credit analysis
- Geographic diversification
- Duration management
- Market timing based on global rate cycles
It ensures exposure to the USD fixed-income ecosystem without operational hassles.
3. Income + Stability + Capital Preservation
The portfolio is constructed to balance:
- Stability (via fixed deposits)
- Income (via Eurobonds)
- Liquidity (via call deposits)
This structure supports both short-term payouts and long-term capital protection.
Risk Profile
Based on the factsheet, the fund is classified as a moderate risk investment.
Primary Risks
- Interest rate risk (global rate movements affect Eurobond prices)
- Currency market volatility
- Credit risk from sovereign and corporate issuers
- Liquidity risk in offshore markets
However, the conservative allocation, active management, and diversification effectively mitigate most of these risks.
Suitable Investor Risk Appetite
The fund is appropriate for:
- Moderate-risk investors
- Those seeking USD stability
- Investors wanting a predictable income
- Savers planning global expenses (education, relocation, travel)
- Corporate treasury managers
- Long-term USD wealth builders
Fee Structure
| Fee Type | Amount |
| Management Fee | 1% p.a. + VAT |
| Initial Fee | Not listed (generally 0% for Stanbic CIS) |
| Withholding Tax | 15% (applied to interest income) |
The fund’s fees fall within industry norms and are competitive for a USD fixed-income strategy.
Investor Suitability
The Stanbic USD Fixed Income Fund is ideal for:
1. Individuals Seeking USD Income
USD cashflow provides:
- Global purchasing power
- Protection against KES depreciation
- Steady inflows for dollar expenses
2. Kenyan Professionals with USD Goals
Including:
- Foreign travel
- Children’s overseas education
- USD-denominated obligations
- Partial wealth offshore
3. Corporates and SMEs
For:
- Treasury management
- USD reserve planning
- Hedging against currency volatility
4. Long-Term Investors
Those looking for:
- US dollar capital stability
- Passive income
- Low-to-medium risk accumulation
This fund addresses a real and growing need — diversification in USD.
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How the Stanbic USD Fixed Income Fund Compares to Other USD Funds
| Fund | Currency | Type | Yield Range | Risk | Minimum |
| Stanbic USD Fixed Income Fund | USD | Fixed Income | 4.67–4.87% | Moderate | USD 100 |
| NCBA USD Fixed Income Fund | USD | Fixed Income | 4–5% | Moderate | USD 100 |
| Sanlam USD Fixed Income Fund | USD | Fixed Income | 4–5% | Moderate | USD 100 |
| Old Mutual USD Fund | USD | Money Market | 3–4% | Low | USD 100 |
| Britam Dollar Fund | USD | Money Market | 3–4% | Low | USD 100 |
The Stanbic USD Fixed Income Fund stands out because:
- It allocates heavily to Eurobonds (50.89%)
- It is more income-focused
- It distributes monthly
- It maintains competitive yields
- It uses a global benchmark (SOFR)
Advantages of Investing in the Stanbic USD Fixed Income Fund
1. Easy Access to USD Fixed Income Markets
No offshore accounts, no complexity, no large minimums.
2. Monthly USD Income
A strong feature for investors with regular USD needs.
3. Professional Active Management
Portfolio oversight by SBG Securities, backed by Stanbic Holdings plc.
4. Low Minimum Investment
At USD 100, it is one of the most accessible USD funds in the region.
5. Currency Protection
A hedge against KES volatility.
6. Conservative Structure
Balanced between Eurobonds, deposits, and call instruments.
How to Invest in the Stanbic USD Fixed Income Fund
- Visit the Stanbic Bank Kenya website
- Navigate to the Unit Trust Funds section
- Choose “Fixed Income Fund (USD)”
- Open an investment account
- Upload ID, KRA PIN, and required documents
- Deposit a minimum of USD 100
- Receive units based on NAV
- Monitor monthly performance reports
The process is fully digital and supported by Stanbic’s investment team.
Frequently Asked Questions
What is the Stanbic Fixed Income Fund (USD)?
It is a USD-denominated unit trust that invests in Eurobonds, offshore deposits, and USD fixed-income instruments to generate stable dollar income while preserving capital. It is designed for investors seeking global exposure without the complexity of handling offshore accounts.
Is the Stanbic Fixed Income Fund safe?
The fund is classified as a moderate risk investment. It invests in high-quality Eurobonds, time deposits, and call instruments, supported by strong governance under KCB Bank (Trustee) and Standard Chartered Bank (Custodian). While Eurobonds carry some volatility, the overall structure prioritizes safety and consistent yield.
How much do I need to start?
You can begin with just USD 100, making it one of the most accessible USD fixed-income funds in the market. Top-ups can also be made in USD increments of $100, allowing investors to build positions gradually.
Does the fund pay a monthly income?
Yes. Income is distributed monthly, offering investors a predictable USD cash flow. This makes it ideal for people with recurring dollar expenses or those seeking diversified income streams.
What returns should I expect?
Based on verified data as of October 2025, investors can expect yields of around 4.67% to 4.87%, depending on the assessment period. These returns closely track global USD interest rates and are competitive compared to USD money market funds and deposits.
Who should invest in the Stanbic USD Fixed Income Fund?
The fund is ideal for Kenyan professionals, SMEs, diaspora investors, parents planning overseas education, and individuals building USD reserves. It suits anyone who values currency stability, predictable income, and conservative offshore exposure.
Can I withdraw anytime?
Yes, the fund offers liquidity subject to standard processing timelines. However, withdrawals may be influenced by the liquidity of Eurobond markets, so investors should plan for medium-term time horizons.
Conclusion
The Stanbic USD Fixed Income Fund offers something rare in today’s investment environment — access to global fixed-income markets, currency stability, predictable income, and conservative risk management, all with a very low minimum investment.
In a world where currency volatility and economic uncertainty can erode savings, this fund provides clarity, structure, and stability.
Whether you’re diversifying your wealth, securing future USD expenses, or safeguarding your purchasing power, the Stanbic Fixed Income Fund (USD) is a strong and sensible choice.
