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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 | 1.5% |
Distribution | Monthly |
Assets Under Management | USD 27.95 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
- Liquidity: The client is able to withdraw their funds at short notice with no penalty fees.
- Flexibility: The client is able to switch or transfer funds to another fund that he/she may have with CICAM.
- Security: The fund invests in government paper and liquid instruments.
- 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.
- Professional fund management: prospective investors benefit from the expertise of our seasoned professionals.
Outlook
USD rates are expected to decrease in 2024. However, the KES depreciation against the USD implies significant upside for KES investments into USD assets. We expect the fund to register strong performance in 2024 on the back of high yielding USD assets in the current environment.
GDP
The global economy has been surprisingly resilient, despite the elevated 10 interest rate regime, trade tensions, geopolitical wars and supply constraints. The baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 3.5 percent in 2025.
Inflation
Inflation is projected to continue on its downward path, falling from 4.9 percent on average in 2023 to 3.5 percent in 2024. Upside risks to inflation still remain; potential disruptions in global energy markets and sup-ply chains. This in turn could prolong the quandary many central banks are facing: how to steer inflation down to target ranges while engineering a soft landing.
Exchange Rates
The shilling has remained broadly stable, it has appreciated by 17.4% year to date. The CBK continues to shore up the reserves to defend the shilling; currently at 4.10 months of import cover. Going forward, we expect the shilling to remain broadly stable and oscillate within the range that it has been – over the last few months.
Interest Rates
The Federal Reserve lowered its benchmark interest rate by a half percentage point, in an aggressive start to a policy shift aimed at bol-stering the US labor market. Policymakers penciled in an additional percent-age point of cuts in 2025, according to their median forecast .
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
