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Investments
September 11, 2026
For Kenyan investors, building wealth isn't just about finding an investment that earns a return. It is also about understanding what could erode that return along the way.
Currency movements, inflation, changing interest rates and global economic shocks can all influence the value of your money over time.
This raises an important question: How can investors diversify their portfolios and reduce their exposure to risks concentrated in the Kenyan market?
One approach is to introduce USD-denominated investments into your portfolio.
The US dollar remains one of the world's dominant currencies, supported by deep and highly liquid financial markets, strong global demand and its role in international trade and finance. For a Kenyan investor, holding part of a portfolio in USD can go a long way in diversifying your exposure to currency movements
One example is the I&M Capital USD Fixed Income Fund, which gives investors an opportunity to invest in USD-denominated fixed-income assets.
So, how does the fund work, who is it suited for, and what should you consider before investing? In this article, we break down everything you need to know about the I&M Capital USD Fixed Income Fund.
The I&M Capital US Dollar Fixed Income Fund, is an investment vehicle that allows investors to diversify their unit trust portfolio through a fund denominated in US dollars.
The fund invests in fixed-income assets with the objective of generating competitive and consistent returns.
Classified as a medium-risk investment, the fund seeks to balance income generation with prudent risk management by investing in a diversified portfolio of fixed-income securities. This makes it an option for investors looking to gain exposure to USD-denominated investments while potentially earning income on their capital.
Also Read: All You Need to Know About The I&M Capital Wealth Fund
The US Dollar Fixed Income Fund is licensed and regulated by the Capital Markets Authority (CMA).
The process is relatively straightforward. Investors pool their money in US dollars, which is then invested in a range of USD-denominated fixed-income instruments. These may include Eurobonds, US dollar Treasury bills and bonds, corporate bonds, offshore USD denominated funds and local USD denominated fixed income securities, depending on the fund's investment strategy.
As these investments generate income, interest is accrued daily and distributed to investors monthly. The returns are compounded monthly, allowing investors to potentially earn returns on their accumulated investment.
In simple terms, you provide the capital and professionals manage it and the underlying investments generate income for you.
The US Dollar Fixed Income Fund (FIF) has an initial minimum investment of USD1,000. According to I&M Capital, the fund is suitable for a wide range of investors, including:
To invest, you need to hold an I&M Bank account.
Also Read: Same Pay, Different Outcomes: What You Can Do Today to Build Wealth Faster
1. Easy access
You don't need a huge amount of money to get started. The minimum initial investment in the US Dollar Fixed Income Fund is US$1,000, while subsequent top-ups can be made from as little as US$100. This gives you the flexibility to start with the minimum and gradually grow your investment over time.
2. Compounding effect
The fund accrues interest daily, which is distributed and compounded monthly. In simple terms, the returns earned can be reinvested to potentially generate additional returns over time. The longer you stay invested and allow your returns to compound, the more opportunity your money has to grow.
3. No lock-in period
Your money isn't tied up for a fixed investment period. The fund has no lock-in period, giving you the flexibility to remain invested for as long as it suits your financial goals while retaining access to your money when needed.
4. Flexible withdrawal with zero charges
Need to access your money? Withdrawals start from US$100, and there are no withdrawal charges. You also don't lose interest that has already accrued when you make a withdrawal. This gives you the benefit of earning from your investment without completely giving up access to your funds.
5. Access your money within 3 working days
When you need your money, you don't have to wait weeks to access it. Withdrawal requests are processed within up to three working days, giving you relatively quick access to your funds while your money continues working for you when it remains invested.
6. Competitive returns
The fund provides investors with competitive USD returns, giving investors an opportunity to earn income on their USD holdings while potentially benefiting from the power of compounding.
7. Digital Access
The fund is easily accessible through the I&M On The Go (OTG) App and Web. You simply need to log into OTG and self-onboard and fund your account at the click of a few buttons.
The I&M Capital US Dollar Fixed Income Fund offers an opportunity to diversify your portfolio through dollar-denominated investments while managing risk and maximising returns.
With a professionally managed portfolio, the fund provides a convenient way to put your dollar savings to work. If you would like to get started with the I&M Capital US Dollar Fixed Income Fund, take the first step today. Learn more about the fund and how to invest here.
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