Question 1

What is Kibaba Special Fund?

Accepted Answer

It is an open-ended, actively managed multi-asset fund offering diversified exposure across:
• Global equities
• Fixed income
• Commodities (including gold)
• FX exposures
• Cash & equivalents
• REITs and permitted alternatives

Question 2

Is Kibaba Special Fund regulated?

Accepted Answer

Yes. The Kibaba Multi-Asset Special Fund is regulated by the Capital Markets Authority (CMA), Kenya, under the Capital Markets Act and the Capital Markets (Collective Investment Schemes) Regulations, 2023

Question 3

Who manages the fund?

Accepted Answer

The Fund is managed by Ndovu Wealth Limited, a CMA-licensed Fund Manager in Kenya

Question 4

Who is the Trustee?

Accepted Answer

The independent Trustee is Kingsland Court Trustee Services Limited, providing fiduciary oversight

Question 5

Who is the Custodian?

Accepted Answer

The Fund assets are held by Diamond Trust Bank (DTB) as Custodian

Question 6

Are investor assets segregated?

Accepted Answer

Yes. Investor assets are held separately by the Custodian under Trustee oversight. They are not mixed with ndovu's assets.

Question 7

Are investor assets protected if Ndovu Wealth ceases operations?

Accepted Answer

Yes. This is a critical investor protection. All fund assets are held in the name of the fund by the Custodian (DTB) under the oversight of the independent Trustee (Kingsland Court). They are legally segregated from Ndovu Wealth’s corporate assets. In the event that Ndovu Wealth were unable to operate, the Trustee would take steps to protect investor assets and appoint a replacement fund manager, subject to CMA approval. Your investment does not sit on Ndovu Wealth’s balance sheet.

Question 8

What does "Multi-Asset" mean?

Accepted Answer

It means the fund invests across different asset classes to diversify risk and enhance risk-adjusted returns.

Question 9

What is the investment approach?

Accepted Answer

The fund uses: Dynamic asset allocation, Quantitative "weight-of-evidence" models, Tactical sector rotation (GICS 11 sectors), Risk budgeting, Diversification across geography & assets

Question 10

What is the objective of Kibaba?

Accepted Answer

To deliver above-inflation, risk-adjusted returns over a full market cycle through disciplined multi-asset diversification, while maintaining downside protection and adequate liquidity.

Question 11

Is the fund long-only?

Accepted Answer

Primarily long-biased, but it has the flexibility to take short positions when appropriate.

Question 12

Does the fund invest offshore?

Accepted Answer

Yes. Up to 100% offshore exposure is permitted within regulations.

Question 13

What benchmark does the fund use?

Accepted Answer

The benchmark is the United States Total Return Cash Index (SOFR Compounded Index) (KES class translated back to KES)

Question 14

What is the risk rating?

Accepted Answer

The fund is rated Medium-to-High Risk. It invests in equities, exchange traded funds (ETFs), sovereign bonds, commodities, real estate investment trusts (REITs) and other alternative asset classes. Investors should be comfortable with short-term fluctuations in the value of their investment.

Question 15

Can I lose money?

Accepted Answer

Yes. The value of your investment may fall as well as rise.

Question 16

What are the main risks?

Accepted Answer

Market risk, FX risk (especially for KES class), Credit & interest rate risk, Liquidity risk, Counterparty risk, Regulatory risk

Question 17

How does Kibaba manage downside risk?

Accepted Answer

Diversification, Tactical asset rotation, Quantitative risk models, Liquidity discipline, Duration management, FX management

Question 18

What returns is the fund targeting?

Accepted Answer

• KES Class: 20% illustrative target
• USD Class: 18% illustrative target
These are performance illustrations and not guarantees. Returns will vary based on market conditions. The fund’s benchmark is the SOFR Compounded Index; the illustrative target represents expected outperformance above inflation and the benchmark over a full market cycle, not a year-by-year projection.

Question 19

Are returns guaranteed?

Accepted Answer

No. Returns are not guaranteed.

Question 20

Does the fund have performance history?

Accepted Answer

The fund is newly launched; sufficient live performance history is not yet available.

Question 21

What currencies are available?

Accepted Answer

KES Share Class, USD Share Class

Question 22

Is the fund open-ended?

Accepted Answer

Yes. Investors can subscribe and redeem units subject to the dealing terms and lock-in period.

Question 23

Does the fund distribute income?

Accepted Answer

No. It follows an accumulation model, income is reinvested to enhance compounding.

Question 24

What is the minimum investment?

Accepted Answer

KES Class
• Initial: KES 250,000
• Top-up: KES 100,000
• Withdrawal: KES 50,000
USD Class
• Initial: USD 2,500
• Top-up: USD 1,000
• Withdrawal: USD 500

Question 25

Is there a maximum investment?

Accepted Answer

No stated maximum.

Question 26

How do I invest?

Accepted Answer

Via: Ndovu App, Online Portal, RM/IFA onboarding, Email submission

Question 27

What types of accounts are allowed?

Accepted Answer

Individual, Joint, Corporate, Institutional

Question 28

Can I switch between funds?

Accepted Answer

Yes. Switching between Ndovu-managed funds is allowed.

Question 29

What is the management fee?

Accepted Answer

5% per annum (accrued daily, charged monthly)

Question 30

Is there a performance fee?

Accepted Answer

Yes. 15% of returns above the hurdle rate.

Question 31

What is the hurdle rate?

Accepted Answer

KES Class: 20%, USD Class: 15%

Question 32

Is there an entry fee?

Accepted Answer

No entry charge.

Question 33

Is there an exit fee?

Accepted Answer

Possible redemption charge if redeemed within 6 months.

Question 34

What is the Fund's Total Expense Ratio (TER)?

Accepted Answer

The TER reflects the total operational cost of the fund, including the 5% management fee, trustee, custodian, and regulatory fees.

Question 35

Is there a lock-in?

Accepted Answer

Yes. 6 months.

Question 36

How long do withdrawals take?

Accepted Answer

Partial: ~2 working days, Full: ~3 working days

Question 37

Can redemptions be suspended?

Accepted Answer

Yes, under exceptional market circumstances.

Question 38

How often is NAV calculated?

Accepted Answer

Daily.

Question 39

Are audited reports provided?

Accepted Answer

Yes. Annual audited reports are made available to investors.

Question 40

Where can I access official documents?

Accepted Answer

Information Memorandum, KIID, Trust Deed, Annual Reports. Available via Ndovu Wealth or request.

Question 41

How is the fund taxed?

Accepted Answer

Subject to withholding tax on interest income and applicable Kenyan tax laws.

Question 42

Should I seek tax advice?

Accepted Answer

Yes. Investors are advised to seek independent legal and financial advice.

Question 43

How does the Finance Act 2025 affect corporate or institutional investors?

Accepted Answer

Under the Finance Act 2025, corporate investors may only carry forward tax losses for up to five years. Individual investors are subject to withholding tax on interest income at applicable rates. All investors are advised to seek independent tax advice, as tax treatment depends on individual circumstances.

Question 44

Who should consider investing?

Accepted Answer

This fund is open to Qualified Investors with a minimum initial subscription of KES 250,000.

Question 45

What is the recommended investment horizon?

Accepted Answer

Minimum 12 months, 3–5 years preferred for long term goal based investing.

Question 46

Can diaspora investors participate?

Accepted Answer

Yes. Non-resident Kenyans and other eligible diaspora investors may invest in the Kibaba Fund. Investors based outside Kenya should note that the fund is regulated under Kenyan law, and it is their responsibility to ensure compliance with applicable laws in their country of residence. Subscription and redemption proceeds can be remitted in KES or USD depending on the share class.

Question 47

Can I borrow against my units?

Accepted Answer

Yes, units may be placed on lien subject to authorization.

Question 48

How does the KES share class manage currency (FX) risk?

Accepted Answer

KES investors are exposed to foreign exchange risk because the fund’s underlying assets are primarily denominated in USD and other foreign currencies. When the KES weakens against the USD, the KES-translated value of offshore assets rises, benefiting KES-class investors. When the KES strengthens, the reverse applies. The fund manages FX exposure through:
• Active FX monitoring and management by the investment team
• Tactical allocation decisions that account for currency positioning
• Duration management to reduce interest rate and currency sensitivity
Investors who wish to eliminate KES/USD currency risk may consider the USD share class. Note that the USD class carries its own FX considerations for investors whose functional currency is KES.

Question 49

How do I track my portfolio?

Accepted Answer

You can monitor your Kibaba Fund investment in real time through the Ndovu mobile app (available on iOS and Android) and the online investor portal. The platform displays your current unit holding, NAV, portfolio value, and transaction history. Annual audited reports are also made available to all investors.

Question 50

What is Ndovu?

Accepted Answer

Ndovu is an investment platform designed to help you grow and manage your wealth. It provides access to a variety of diversified funds, expert financial guidance, and user-friendly tools to monitor and optimize your investments, with a focus on long-term financial growth.

Question 51

How do I get started with Ndovu?

Accepted Answer

Sign up on the platform, verify your email, navigate to the "Invest" page, select your preferred fund, and invest via mobile money or bank transfer.

Question 52

What can I invest in?

Accepted Answer

Ndovu offers a range of curated investment opportunities. If you're unsure where to begin, popular options include the Gold Fund (steady returns, USD-denominated) and the Blue Chip S&P 500 Fund (growth potential through established U.S. companies).

Question 53

What is best execution?

Accepted Answer

A legal mandate requiring investment services firms to provide the most advantageous order execution for their customers given the prevailing market environment.

Question 54

How do I withdraw my funds?

Accepted Answer

Withdrawing your funds from Ndovu is simple and involves two steps:
Step A: Disinvest from your selected fund
• Log in to your Ndovu account.
• Navigate to the Portfolio section.
• Select the fund you wish to disinvest from and click Disinvest.
Your disinvestment request will be processed within 2 business days, and the funds will be transferred to your Ndovu Pocket.
Step B: Withdraw funds from your Ndovu Pocket
• Log in to your Ndovu account.
• On your dashboard, click on Ndovu Pocket.
• Select Withdraw and enter the amount you wish to withdraw.
• Click Withdraw from Pocket and provide your withdrawal settlement details.
The withdrawal process may take up to 3 business days, depending on your payment method.
Note — No Liability: Ndovu shall not be liable for any losses, damages or expenses incurred as a result of clients providing incorrect or incomplete withdrawal settlement account details. Clients are solely responsible for ensuring the accuracy of all information submitted. Ndovu is not obligated to verify the correctness of the details provided and will process transactions based solely on the information given. By using Ndovu’s services, clients acknowledge and agree to this limitation of liability.

Question 55

What is the average return earned?

Accepted Answer

On average, users on the platform earn a return of 15% per year.

Question 56

After how long can I disinvest?

Accepted Answer

You can disinvest at any time. However, we recommend holding your investment for at least six months to a year to allow it to grow and provide a better understanding of market performance. Investing is most effective as a long-term strategy, offering greater potential for higher returns over time.

Question 57

Is there a charge for withdrawing cash from my Ndovu account?

Accepted Answer

Ndovu does not charge any fees for transferring funds from your Ndovu account to your Ndovu Pocket. However, transaction fees may apply based on the payment method you select (e.g., M-Pesa or bank transfer). We recommend checking with your payment provider for details on any applicable charges.

Question 58

What are the monthly minimum contributions?

Accepted Answer

There are no monthly or quarterly contribution requirements, though investing regularly is encouraged to build significant portfolio value.

Question 59

What is the minimum amount I can start with?

Accepted Answer

You can start investing on Ndovu with a minimum of KES 5,000.

Question 60

Why invest in ETFs?

Accepted Answer

Investing in Exchange-Traded Funds (ETFs) offers a range of benefits that make them an attractive option for building a diversified and cost-effective portfolio:
• Diversification: ETFs provide exposure to a broad array of assets, such as stocks, bonds, or commodities, reducing the impact of poor performance from any single investment.
• Cost-Effectiveness: With typically lower fees than actively managed funds, ETFs are a budget-friendly choice, particularly for long-term investors.
• Liquidity: ETFs trade on stock exchanges, allowing investors to buy or sell shares throughout the trading day, offering greater flexibility than mutual funds.
• Transparency: Most ETFs disclose their holdings regularly, enabling investors to monitor their portfolios with ease.
• Market Access: ETFs offer exposure to diverse markets, sectors, or regions, such as the S&P 500, emerging markets, or specific industries, enabling global diversification.
• Investment Flexibility: Whether your goal is growth, income, or balance, ETFs cater to various investment strategies, making them suitable for different financial objectives.
By investing in ETFs, you can create a well-rounded portfolio aligned with your financial goals while benefiting from their affordability, versatility, and ease of trading.

Question 61

What is an Exchange-Traded Fund (ETF)?

Accepted Answer

An Exchange-Traded Fund (ETF) is an investment fund that holds a diversified collection of assets, such as stocks, bonds, or commodities, and trades on stock exchanges like individual stocks. By purchasing shares of an ETF, investors gain exposure to a broad portfolio without needing to buy each asset separately.
ETFs are often designed to replicate the performance of a specific index, sector, or asset class, such as the S&P 500 or commodities like gold. They are favored for their advantages, including lower fees, liquidity, transparency, and ease of diversification, making them an attractive option for both novice and seasoned investors.

Question 62

Where does your money sit?

Accepted Answer

You can easily transfer from your bank or mobile money account to your Ndovu account. Your money is held in a segregated account (a financial account where your money is kept safely in a trusted bank, separate from our company’s finances).
Ndovu optimises your portfolio by instructing our broker to buy and sell securities on your behalf. The securities in your portfolios are kept entirely separate from the bank’s assets.

Question 63

Who holds the money and executes the trades?

Accepted Answer

Ndovu works with regulated banks in Kenya (licensed by the Central Bank of Kenya) and the United States (licensed by the Office of the Comptroller of the Currency). Trades are executed via a broker-dealer licensed by the US Securities and Exchange Commission.

Question 64

Is my money safe?

Accepted Answer

At Ndovu, safeguarding your investments is our top priority.
We comply with stringent regulatory standards and utilize advanced security measures to protect your personal and financial information. The funds on our platform are allocated to reputable financial products, such as Exchange-Traded Funds (ETFs), managed by well-established institutions.
While all investments involve some level of risk, we are committed to providing diversified and secure options designed to preserve and grow your wealth over time.

Frequently asked questions