Oak Special Fund Statistics and Performance: Everything You Need to Know

Is the Oak Special Fund a hidden gem or a risky bet? Before you invest your hard-earned money, you need the cold, hard facts. We’re taking a closer look at the fund’s performance, key metrics, and risk factors—so you don’t have to.

By the end of this breakdown, you'll know whether Oak Special Fund deserves a spot in your portfolio or if you should steer clear. Let’s get into it.

What to Expect in This Article

1. Overview of Oak Special Fund – Understanding its structure, regulation, and fund details.
2. Performance Metrics – A look at the fund’s annualized returns and growth since inception.
3. Risk Indicators – Evaluating the risks involved, including volatility and management strategies.
4. Asset Allocation & Investment Strategy – Breakdown of how the fund invests across different asset classes.
5. Expense Ratio & Fees – Analyzing management fees and their impact on returns.
6. Assets Under Management (AUM) – Tracking the fund’s growth and investor confidence.
7. Withdrawal & Liquidity – Policies on withdrawals, minimum balances, and fund liquidity.
8. Is the Oak Special Fund a Safe Investment? – Pros, cons, and investor suitability.
9. Final Verdict – Summary of who should invest and key takeaways.

1. Overview of Oak Special Fund

The Oak Special Fund is a leveraged asset allocation fund managed by Faida Investment Bank and regulated by the Capital Markets Authority (CMA) Kenya. The fund offers investors exposure to multiple asset classes, making it an attractive option for those seeking alternative investments.

Fund Details

• Fund Manager: Faida Investment Bank
• Regulated by: Capital Markets Authority (CMA) Kenya
• Custodian Banks: KCB Bank, I&M Bank
• Trustee: Cooperative Bank of Kenya
• Base Currency: Kenya Shilling (KES)
• Minimum Investment: KES 500,000
• Minimum Top-up: KES 50,000
• Lock-in Period: 6 months

2. Performance Metrics

One of the most attractive aspects of the Oak Special Fund is its strong performance since inception.

Annualized Returns

• Since Inception (Feb 2024 - Nov 2024): 29.32%
• Target Return: 20% per year after fees
• Monthly Returns: Performance varies based on market conditions and investment strategy.

Simulation Example

A KES 1 million investment in February 2024 would have grown to KES 1.293 million by November 2024.

3. Risk Indicators

While the fund delivers high returns, it also involves higher risk compared to traditional money market funds.

• Fund Volatility: Returns fluctuate based on asset class performance.
• Risk Management: Exposure is actively managed using hedging strategies and diversification.
• No Guaranteed Returns: The fund does not promise fixed returns but aims to achieve targeted growth through strategic investments.

4. Asset Allocation & Investment Strategy

Oak Special Fund adopts a multi-asset strategy, investing in various markets to optimize risk and return.

Investment Classes

• Equities (Local & International Stocks): Invests in Safaricom, Absa, Alphabet, Amazon, Tesla, Nvidia, and others.
• Bonds & Sovereign Debt: Includes Kenyan government securities and global sovereign bonds.
• Derivatives & ETFs: Trades in options, futures, and exchange-traded funds.
• Forex Trading & Currency Hedging: Engages in currency trading and hedging to mitigate exchange rate risks.
• Commodities (Gold, Oil, Silver): Uses contracts for difference (CFDs) to trade in commodities.

• Fixed Deposits & Call Deposits: Provides stable returns while minimizing risk.

Asset Profit Contribution

Asset Class Profit Contribution

• Indices & Metals 10%
• Equities 2%
• Fixed Deposits 25%

5. Expense Ratio & Fees

• Management Fee: 6% per annum, deducted daily and reflected in net returns.
• No Withdrawal Fees: Investors can withdraw after the 6-month lock-in period.

6. Assets Under Management (AUM)

• November 2024: KES 763 million
• December 2024: Surpassed KES 800 million

The fund has experienced rapid growth within a short period, demonstrating strong investor confidence.

EP1: Oak Special Fund Fact Sheet: Demystifying Performance and Strategy (www.oak.africa)

7. Withdrawal & Liquidity

• Minimum Withdrawal: Investors can withdraw funds but must maintain a minimum balance of KES 100,000 to keep the account active.
• Liquidity Management: The fund ensures sufficient cash reserves to meet investor withdrawal requests.

8. Is the Oak Special Fund a Safe Investment?

The Oak Special Fund is a high-risk, high-reward investment. While it offers potentially high returns, investors should be aware of market risks and the absence of guaranteed returns.

Pros

✔ High potential returns (29.32% since inception)

✔ Diversified portfolio (stocks, forex, bonds, commodities)

✔ Regulated by CMA Kenya

✔ Strong fund growth (KES 800M+ AUM)

Cons

❌ Higher risk compared to traditional funds

❌ 6-month lock-in period

❌ No guaranteed returns

9. Final Verdict

The Oak Special Fund is ideal for investors seeking high returns and willing to take on higher risks. Its diverse portfolio, strong performance, and CMA regulation make it a promising option for those looking beyond traditional investments.

Who Should Invest?

✅ Investors with a long-term perspective (6+ months)

✅ Those seeking higher-than-average returns

✅ Individuals comfortable with market fluctuations

However, if you prefer a low-risk investment, traditional money market funds or fixed deposits may be a better choice.

Frequently Asked Questions (FAQ)

1. What is the Oak Special Fund?

The Oak Special Fund is a Leveraged Asset Allocation Fund domiciled in Kenya, managed by Faida Investment Bank, and regulated by the Capital Markets Authority (CMA) Kenya). It offers investors exposure to both local and global markets through a diversified portfolio.

2. What is the minimum investment required?

The minimum investment amount is KES 500,000, with subsequent top-ups allowed at a minimum of KES 50,000.

3. Are the returns guaranteed?

No, the fund does not guarantee returns. While it has a target return of 20% per annum after fees, actual performance may vary based on market conditions.

4. What is the lock-in period for investments?

Investments in the Oak Special Fund are subject to a 6-month lock-in period, after which withdrawals can be made, provided a minimum balance of KES 100,000 is maintained.

5. How does the fund manage risk?

The fund employs active risk management strategies, including diversification across various asset classes and the use of hedging techniques, to mitigate potential losses.

6. Who is the fund manager?

The Oak Special Fund is managed by Faida Investment Bank, a reputable financial institution in Kenya.

7. How can I invest in the Oak Special Fund?

Interested investors can contact Faida Investment Bank via email at [email protected] or through WhatsApp at (+254) 743 552 341) for guidance on the investment process.

8. Is the Oak Special Fund suitable for all investors?

Due to its leveraged nature and associated risks, the fund is better suited for investors with a medium to long-term horizon and a moderate to high-risk tolerance. It's advisable to consult with a financial advisor to determine if it aligns with your investment objectives.

9. How does the fund's performance compare to traditional investment options in Kenya?

The Oak Special Fund targets higher returns compared to traditional investments like fixed deposits or government bonds. However, it also carries higher risks due to its leveraged investment strategies. Investors should weigh the potential for higher returns against their risk tolerance.

10. Can international investors participate in the Oak Special Fund?

Yes, the fund is open to both local and international investors. Prospective international investors should contact Faida Investment Bank for specific requirements and guidance.

For more details, visit the official Oak Special Fund website or consult a financial advisor.