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E-mail: oak@fib.co.ke
WhatsApp: (+254) 743 552 341
Call: (+254) 719 212 349
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Head Office
Address: Crawford Business Park,
State House Rd, Nairobi Kenya.

OAK Special Fund is a Leveraged Asset Allocation Fund domiciled in Kenya. It offers investors a unique opportunity to access both local and global markets. The fund is managed by Faida Investment Bank and is licensed by the Capital Markets Authority as a Special Collective Investment Scheme (CIS).

Key Information

Inception Date: February 2024
Base Currency: Kenya Shilling (KES)
Minimum Investment: KES 1,000,000
Minimum Top-up: KES 100,000
Lock-in Period: 6 months
Fund Manager: Faida Investment Bank

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Investing in Global Markets: Insights from Rina Hicks in the CTA MasterClass

In today’s interconnected world, the concept of investing in global markets is gaining increasing relevance, especially for individuals looking to diversify their portfolios and hedge against local economic risks. Rina Hicks, head of operations at Faida Investment Bank, shared her expert insights on this topic in a recent CTA MasterClass - Class in Session (CiS). During the session, Rina unpacked the meaning of investing in global markets and the importance of expanding one's financial horizon beyond local borders.

What Does It Mean to Invest in Global Markets?
At its core, investing in global markets refers to diversifying investments beyond one's own country. This means exploring opportunities in various international markets—whether in stocks, bonds, commodities, or other asset classes. Rina explained that this approach offers a broader spectrum of opportunities, allowing investors to seek higher returns and hedge against risks such as inflation and currency depreciation.

For example, in Kenya, the local currency, the Kenyan Shilling, has depreciated significantly against the US dollar over the past decade. As of 2014, the exchange rate was 89 shillings per dollar, compared to around 129 shillings in recent years. This depreciation underscores the need for Kenyans to consider investing in stronger currencies and markets abroad to preserve the value of their earnings.

Rina highlighted that this is not a problem unique to Kenya—many emerging markets face similar challenges. She emphasized that by diversifying globally, investors can mitigate the negative impact of local economic downturns and currency devaluation, helping them maintain purchasing power and ensure long-term financial stability.

Why Global Investing Is Important
Investing in global markets is a strategic way to avoid putting all your eggs in one basket. Rina illustrated that when the local market is not performing well, investments in other countries may still generate good returns. This diversification becomes essential in environments where inflation rates are rising or local currencies are losing value against stronger currencies like the US dollar, Euro, or British pound.

While local investments, such as in Kenya’s stock market or real estate, can provide attractive returns, these must be weighed against inflation and currency depreciation. Global markets offer an opportunity to hedge against these risks and protect wealth over time. Rina used examples such as the Nigerian naira, which has depreciated by 89% in just three years, and the Zimbabwean dollar, which faced hyperinflation, to demonstrate the significance of global diversification.

The Challenges of Global Investing
Despite the benefits, investing globally comes with its own set of challenges. Many people are unfamiliar with the processes involved, such as where to open accounts, how to access foreign markets, and what assets to invest in. Moreover, busy professionals and business owners may not have the time or resources to evaluate various opportunities across different markets.

Rina acknowledged these obstacles, noting that Faida Investment Bank has simplified the process for its clients by providing easier access to global markets. With expertise in identifying high-potential opportunities, Faida helps investors, from high-net-worth individuals to small-scale retail investors, navigate the complexities of global investing.

"Guaranteed Returns" – Fact or Fiction?
During the session, Rina also addressed a common yet controversial term in the world of finance: “guaranteed returns.” She pointed out that while this phrase is often used to attract investors, it is important to understand that no investment comes without risk. The concept of "guaranteed returns" may create a false sense of security, and investors must be wary of promises that sound too good to be true. Rina hinted that this topic would be explored further, encouraging the audience to adopt a more realistic approach to their investment expectations.

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