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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

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 53 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
  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.
GDP

The CBK upwardly revised the 2023 real GDP growth estimate by 10 basis points to 5.6% while in 2024, growth is estimated to touch 5.7% . Leading indicators point to continued economic growth in the first quarter of 2024, reflecting robust activity in the agriculture and service sectors.

Inflation

– The average inflation for 1Q24 stood at 6.3%, the slower growth in the general price levels was largely due to the deceleration in both food & fuel inflation which led to a slow down in the food and transport indices.

Interest Rates

– In April, the Monetary Policy Committee decided to maintain the policy rate at 13% citing that the current monetary stance is sufficient to reduce inflation. The short term papers continued to inch upwards with the 91, 182 and 365 day papers closing at 16.73%, 16.89% and 16.98% respectively. Investors’ appetite remains skewed towards shorter term maturities.

Outlook

Rates on government securities should continue increasing especially in 1H24, the money market fund rate is therefore expected to gradually increase as maturities are repriced to reflect the increased rates.

Fund Performace

Asset Allocation

T- Bill Rates

Statutory Disclaimer: The fund’s past performance is not necessarily a guide to the future. The client’s capital remains intact 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 presented is net of fees and gross of withholding tax.

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