Britam Special Funds: How to Invest in Global Markets

Your smartphone, the apps running on it, the cloud services storing your information and the artificial intelligence tools becoming part of everyday work.

Many of the companies behind these products trade on international stock markets.

Investing in them directly can require access to foreign markets, research and an understanding of currency movements.

Britam’s Enhanced Global Equities Special Fund offers exposure to international shares through a professionally managed portfolio.

Its Multi-Asset Special Fund takes a wider approach, combining different investments across local and global markets.

They serve different needs, and the minimum investment and risks are not the same.

One fund focuses on global technology and innovation

The Enhanced Global Equities Special Fund invests mainly in international shares, with a focus on artificial intelligence, semiconductors, cloud computing and automation.

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

It also seeks opportunities in healthcare, life sciences, energy and the digital economy.

Rather than buying individual overseas shares, investors gain exposure through the fund’s portfolio.

The minimum initial investment is $2,000 with additional contributions from around $1,000.

These are indicative shilling equivalents because the fund is based in US dollars.

Investors can contribute in Kenyan shillings or US dollars without opening a separate US-dollar bank account.

The recommended investment period is at least five years.

The fund reinvests dividends and other generated income, making it a growth-oriented option rather than a product designed to provide regular cash payouts.

The annual management fee is 2.5%, with a performance fee of 10% on returns above the S&P 500 benchmark, subject to the applicable terms.

There is a six-month lock-in period.

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

Investors should also account for currency risk.

A change in the exchange rate can raise or lower the value of the investment when measured in Kenyan shillings.

Share prices can fall too, so the original investment is not guaranteed.

A different route: Combining asset classes

The Multi-Asset Special Fund does not depend on global shares alone.

It can invest across government bonds, international bonds, local and global equities, commodities and currencies.

The idea is to spread exposure across different markets and investment types.

Bonds can generate interest income, shares offer exposure to company performance, and commodities and currencies respond to other economic forces.

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

The fund is denominated in Kenyan shillings, and the recommended investment horizon is three years or longer.

It targets a return of 15% annually, net of fees, over rolling three-year periods.

That figure is a target, not a guaranteed return – results can vary, and the investment can lose value.

The fund can also take long and short positions and use derivatives and leverage.

These strategies allow the manager to respond to rising or falling markets, but leverage can magnify losses as well as gains.

Which one should you consider?

The Global Equities Special Fund is designed for investors who want long-term exposure to international companies and can remain invested through market fluctuations.

The Multi-Asset Special Fund offers exposure across a wider range of assets for people seeking a diversified portfolio.

Neither is a guaranteed-income investment.

Global shares can decline, currencies can move against investors, and diversification does not prevent every loss.

The Multi-Asset fund’s use of leverage introduces additional risk.

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

This oversight does not guarantee investment performance.

Before investing, look beyond the headline figures.

Check the investment period, fees, withdrawal rules, currency exposure and your ability to tolerate losses.

Want to understand the options better? Click here now to learn more about Enhanced Global Equities Special Fund and the Multi-Asset Special Fund.

Alternatively, fill in your details in the form below to schedule a callback from a Britam representative and discuss the current terms.