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At CIC we are committed to maintaining open and transparent communication with our shareholders and investors in order to nurture a strong relationship with them.

Market Commentary

Key Features

Fund Manager

CIC Asset Management Ltd

Launch Date

Nov - 20

Risk Profile

Low

Trustee

Kenya Commercial Bank

Custodian

Co-op Custodial Services

Auditors

PWC

Minimum Investment

USD 1000.00

Minimum Additional Investment

USD 100.00

Initial Fee

Nil

Annual Management Fee

1.2%

Distribution

Monthly

Asset Under Management

USD 21 Million

Fund Objective

Investors who are seeking ;

  • Capital preservation whilst not seeking long-term capital growth.
  • A high degree of capital stability and with a risk neutral appetite.
  • Currency diversification.
Key Benefits
  1. Liquidity: The client is able to withdraw their funds at short notice with no penalty fees.
  2. Flexibility: The client is able to switch or transfer funds to another fund that he/she may have with CICAM.
  3. Security: The fund invests in government paper and liquid instruments.
  4. Competitive returns: Interest is calculated daily and credited at the end of each month. As an institutional client, the fund benefits from placing deposits in large sums and as such is able to negotiate for competitive rates.
  5. Professional fund management: Prospective investors benefit from the expertise of our seasoned professionals.
Outlook

USD rates are expected to decrease in 2024, we expect the fund to register strong performance in 2024 on the back of high yielding USD assets in the current environment.

GDP

Global growth projections for 2024 are expected to register a mild slowdown compared to 2023.Expectations of disinflation and steady growth could bolster easing of financial conditions. Overarching this, select central banks will likely proceed with a measured pace towards interest rate cuts. This shall largely be tethered to stronger structural reform momentum that is anticipated to enhance productivity. Last year’s tailwinds should fade out this year but not completely die out.

Inflation

As inflation rates continue to fall, monetary authorities in both advanced economies and emerging markets will begin to withdraw their restrictive policies from the second half of 2024 in a gradual manner. Core inflation rates are still too high relative to targets. However, favorable global supply developments have been reflecting the fading of relative price shocks notably energy prices and their pass through effects to core inflation.

Exchange Rates

During the quarter, the Kenyan shilling appreciated 18.7% against the dollar. This was largely supported by increased dollar inflows from the multi lateral bodies( IMF& World Bank), Eurobond buyback and issuance, and the oversubscription of the February Infrastructure bond coupled with a momentary panic selling of dollars. However, the shilling is expected to remain under pressure on the back of a sustained current account deficit and increased debt servicing.

Interest Rates

Decisions of central banks about when and how quickly to start cutting interest rates will be one of the main dynamics for the global economy in 2024. After a major battle against inflation over the last two-and-a-half years, central banks will be very cautious about making a premature declaration of victory and, hence, will only cut rates slowly.

Fund Performance

Asset Allocation

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 guarantee on the client’s capital as the performance of units in the fund is determined by change in the value of underlying investments hence value of your unit trust investment

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