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Market Commentary
Key Features
Fund Manager | CIC Asset Management Ltd |
Launch Date | Jun - 11 |
Risk Profile | Moderate |
Trustee | Kenya Commercial Bank |
Custodian | Co-op Custodial Services |
Auditors | PWC |
Minimum Investment | Ksh 5,000.00 |
Minimum Additional Investment | Ksh 1,000.00 |
Initial Fee | Nil |
Annual Management Fee | 2.00% |
Distribution | Semi-Annual |
Assets Under Management | KES 159.8 Million |
Fund Objective
Medium to long-term investments
Extra returns at moderate risk.
Reasonable return from a well-diversified portfolio of fixed income securities.
Asset Allocation
GDP
Kenya’s economy expanded by 4.0% in the third quarter of 2024, a decline from a 6.0% growth in the same quarter 2023. The slowdown was largely caused by contraction in critical sectors-Construction, Mining and Quarry-ing. However, the slower GDP growth observed in Q3 2024 was bolstered by strong performance in specific sectors (agriculture, accommodation services, and transportation) despite overall economic deceleration compared to previous years.
Inflation
Headline inflation edged up to 3.6% in March 2025 from 3.5% in Feb 2025, largely on account of increase in prices of food and non-alcoholic beverages. Food inflation increased to 6.6% from 6.1% in Feb 2025 predominantly owing to the rise of vegetables and maize flour prices. Core inflation, stood at 2.2 % in March 2025, a rise from 1.9% in Feb 2025 while non-core to 7.4% from 7.1% over the same period
Interest Rates
In February, the Monetary Policy Committee voted to lower the policy rate to 10.75% from 11.25% having reviewed the out-comes of its previous decisions to anchor inflationary expectations and maintain exchange rate stability. The short-term papers continue to record a decline, with the 91-, 182- and 365-day papers closing at 8.79%, 9.06% and 10.41% respectively.
Interest Rates
An improved performance is expected for the fund as new inflows and maturities come in which will be reinvested at higher yields in the current interest rate environment. The fixed income fund will face some negative valuation movements as rates on government securities continue rising but is however anticipated to register gradual increment in gains as we continue taking advantage of the higher rates. The fund provides an opportunity for investors with low liquidity needs to lock in higher returns.
Fund
Performance
Nairobi Security Exchange
yield curve
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. Effective annual yield is presented net of fees
and gross of withholding tax.
