There is no guarantee that your money is safe in online forex trading product Mansa X, Standard Investment Bank’s (SIB) Executive Director and Head of Global Markets Nahashon Mungai has said.
Speaking to the Standard newspaper, Mungai said that he “can’t face an investor and guarantee a return”, raising more fears on their promise of 24 percent returns every year.
“I have been in markets long enough to know anything can happen. That’s why I can’t face an investor and guarantee a return no matter how sure I am even if I bought government bonds to protect a downside,” said Mungai.
“We are not going to project a false image on how investments work, but we are constantly busting our heads looking for a return but also watching the downside.”
This comes at a time Business Times questioned the viability of Mansa X business model and the promised returns to investors, at a time the when currencies, commodities and stock markets all over the world are experiencing losses, with the Nikkei of Japan down 5%, Dow Jones of US down 13% and the FTSE of Europe down 19%.
In the Interview with the Standard, Mungai revealed that Mansa X trades in more than 100 currency combinations, commodities such as oil, natural gas and coffee and precious metals, including gold and silver platinum. He also alleged that Mansa X deals with global stock indices and lucrative stocks such as Apple, Tesla and AT & T.
“Investors were asking: How come everybody else returns 10 per cent, and you guys return more than double that amount? It doesn’t make sense; you are either lying or taking more than the typical amount of risk,” he said.
In previous public disclosures, Mansa X said that it has an asset base of investors money worth Ksh2 billion, raising the question whether this amount is enough to trade in all those asset classes.
Mungai says that in the second quarter, they offered an annualised return at 16 per cent.
Up to date, Mansa X and SIB have not been able to share a list of assets where the money is invested.
The scheme has the appearance of legitimacy as it bills itself as “Kenya’s first and only CMA regulated Online Forex Trading Money Manager” so that investors don’t question it.