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Market Commentary
Key Features
Fund Manager | CIC Asset Management Ltd |
Launch Date | Jun - 11 |
Risk Profile | Low - Medium |
Trustee | Kenya Commercial Bank |
Custodian | Co-op Custodial Services |
Auditors | PWC |
Minimum Investment | Ksh 5,000,000 |
Minimum Additional Investment | Ksh 1,000,000 |
Initial Fee | 0 |
Annual Management Fee | 2.00% |
Distribution | Maturity |
Distribution | KES 9.32 Billion |
Fund Objective
- Capital preservation
- Enhanced level of return with slightly elevated risk profile compared to Money market.
- Ideal for short term cash management.
GDP
GDP growth slowed to 4.6% in Q2 2024, down from 5.6% recorded in Q2 2023. This slowdown mainly reflected deceleration in growth in most sectors of the economy. Some sub-sectors in industry contracted, underscoring the challenges to growth stemming from low government spending and consumer demand as well as sticky input prices. Overall, the economic growth outturn for 2024 is thus far slower than earlier projected and we see GDP growth could remain weak to end-year.
Inflation
Headline inflation rose for the first time in seven months, albeit marginally, to 4.4% in August from 4.3% in July 2024. The rise is largely attributable to higher fuel prices while food inflation decelerated m/m. We reiterate that we expect the annual inflation rate to oscillate within the mid-point (5.0%) of CBK’s target range supported by favourable weather.
Interest Rates
Overall inflation recorded a marginal increase to 2.8% in November from 2.7% in October 2024.General prices rose by 0.3%. The lower inflation levels thus far provide sufficient room for further monetary policy easing as the focus is now slowly shifting from price stability to stimulation of aggregate demand.
Outlook
Rates on government securities have begun to pare down in line with the benchmark rate cut by the CBK Monetary Policy Committee. The wealth fund rates are therefore expected to gradually drop though should remain attractive as rates remain elevated compared to prior periods.
Fund Performance
Asset Allocation
Yield Curve
Maturity Profile
Statutory Disclaimer: The value of units may go down as well as up and past performance is not necessarily a guide to the future. There are no guarantees on the client’s capital as the performance of units in the fund is determined by changes in the value of underlying investments hence value of your unit trust investment.
