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Market Commentary
Key Features
Fund Manager | CIC Asset Management Ltd |
Launch Date | Jun - 11 |
Risk Profile | Low |
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 | Monthly |
Asset Under Management | KES 81.8 Billion |
Fund Objective
Capital preservation whilst getting inflation protection.
High degree of capital stability with limited risk.
A short-term parking bay for surplus funds particularly in times of market volatility.
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.
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
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.
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.
Outlook
Rates on government securities should stabilize or decline, especially in 2H25, as investors adjust to the most recent CBK rate plunge. The money market fund rate is there-fore expected to gradually decrease as maturities are repriced to reflect the lowered rates. Interbank rates are still declining, suggesting lower rates in the near term.
Fund Performace
Asset Allocation
T- Bill Rates
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.
