All You Need to Know About the Sanlam Allianz Balanced Fund With a 32.3% Return 

Kenyan investors are increasingly shifting their money into investment vehicles with higher returns as the traditional low-risk options like money market funds (MMFs) and Treasury Bills continue to decline. 

One such fund is the Sanlam Allianz Balanced Fund, a medium-to-high-risk investment that delivered a 32.3% gross return in the last 12 months ending April 2026. 

In this article, we review the Sanlam Allianz Balanced Fund, how it works and what you need to know before deciding if it is a good fit for you. 

What is a Balanced Fund in Kenya

A balanced fund is a type of mutual fund that invests pooled funds across equities and fixed-income securities to offer a balance between risk and return. This is ideal for investors unsure whether to swing to invest in shares or fixed income investment vehicles such as bonds. 

In Kenya, balanced funds largely invest in stocks and government securities to generate reasonable returns while managing volatility. Stocks have a higher risk while bonds are relatively low risk.

How Returns in the Sanlam Allianz Balanced Fund Works

The Sanlam Allianz Balanced Fund is managed by Sanlam Allianz Investments Limited, an asset manager that handles over Ksh783 Billion as at 31st March 2026 in assets across multiple portfolios. 

When you invest in the Sanlam Allianz Balanced Fund, you make money through capital gains in its underlying assets. It has the same concept of investing in companies through stocks, only that the fund is run by professionals who understand different markets including stocks, bonds, fixed income vehicles, among others.

When you invest in the fund, you are buying units at a given price (Price as of 4th May 2026 was 29.38 per unit)

• If the value of the underlying assets (stocks, bonds, etc.) increases, the unit price rises
• When you sell your units later at a higher price, you earn through capital gains

This fund seeks to provide investors long-term capital appreciation by investing primarily in mid-long term government bonds, high quality corporate bonds and money market securities.

• Returns consist of a re- invested interest and a dividend income as well as capital gains resulting from appreciation in the value of the underlying securities.

The Sanlam Allianz Balanced Fund was incorporated in 2014 and as of 1st Jan 2021 a unit was going for Ksh15.38. A unit now costs Ksh29.38, as of May 2026, a 91% appreciation.  

According to the latest market report:

• Assets under management stand at Ksh157 million with rapid growth as investors shift from low-risk options.

Features of Sanlam Balanced Fund

The fund was incorporated in November 2014, and here are its key characteristics:

Minimum investment: Ksh2,500
This relatively low entry point makes it accessible to first-time investors looking to move beyond savings accounts or money market funds.

Minimum top-up: Ksh1,000 per transaction
Investors can steadily grow their portfolio through small, consistent additions over time.

Risk level: Medium to high
The fund takes on more risk than fixed-income products, mainly due to its exposure to equities, but still maintains a stabilising component through government securities and cash.

Recommended investment period: 3 to 5 years
This longer horizon allows the fund to ride out short-term market fluctuations and maximise growth potential.

Liquidity: Sanlam Balanced Fund has a liquidity of about 5 business days. Liquidation happens by you selling your units, which is facilitated by the SanlamAllianz team 

Assets under management: Ksh157 million. The fund is still relatively small, which can allow for more flexibility in investment decisions.

 Management fee: 2.0% annually
This fee is charged for professional fund management and is deducted from the fund’s assets.

Expense ratio: 3.3%
This reflects the total annual cost of running the fund, including management fee and operational expenses.

Where Investments Are Made

The fund is designed to deliver above-average market returns by diversifying across asset classes.

To balance risk and returns, the fund allocates investments as follows:

• 39.7% in Treasury securities
• 24.2%% in Equities (Shares)
• 24.1% in cash and bank deposits
• 7.7% in corporate debt
• 4.0% in global investments

Sanlam Balanced Fund's Past Performance

• Last Year Annualised return: 31.4%
• 3-year annualised return: 22.0%
• Since inception return (2014): 13.7% annually

A Balanced Fund is a Good Fit If:

1. You are unsure whether to invest in equities or fixed income. A balanced fund gives you exposure to both, with the mix managed by a professional fund manager.
2. You are focused on long-term wealth creation. It works best if you can stay invested for at least 3 years or more.
3. You have a moderate to high risk tolerance. You are comfortable taking some risk, but still want the stability of experienced professionals managing your money. 

Advantages of Balanced Funds

1. Diversification - Instead of choosing between stocks and fixed income, you get both in one investment. If equities underperform in a given year, the fixed income portion can help cushion the impact, and vice versa.
2. Professional Management - You don’t need to decide when to buy, sell, or rebalance. A fund manager handles the mix based on market conditions.
3. Lower Volatility - Balanced funds are generally less volatile than pure equity funds. The fixed income portion helps reduce sharp losses during market downturns.
4. Capital Gains - Your price per unit can grow over time.
5. Automatic Rebalancing - As markets shift, your investment is adjusted automatically to maintain the right balance between risk and return.
6. Beginner-Friendly - If you’re starting out, balanced funds offer a simple way to invest without needing to build a portfolio from scratch.
7. More Stable Returns Over Time - By combining growth and stability, balanced funds aim to deliver more consistent returns compared to investing in a single asset class.

However, here is what you should know before investing in balanced funds; 

• Risk is Reduced, Not Eliminated - Balanced funds carry moderate to high risk. While diversification helps cushion losses, you can still lose part of your initial investment when you choose to withdraw when the price is lower than the price you joined with. However, when the price is low you can choose not to sell your units and wait for the price to be favourable. 

• Management Fees Apply - You’re paying for professional management, and these fees can reduce your overall returns over time, especially if the fund underperforms.

• May Not Fit Specific Goals - If your goal is very clear, like aggressive growth or preserving capital, a balanced fund may feel too “middle ground” and not fully meet your needs.

If you would like to invest in the SanlamAllianz Balanced Fund, get started here.