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 - Medium |
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 | 0 |
Annual Management Fee | 2.00% |
Distribution | Monthly |
Asset Under Management | KES 56.4 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
The government has projected a 5.4% real GDP Growth in 2024, lower than earlier prediction of 5.7%. This was after a 5.0% growth in Q1-2024, which was a slower rate compared to 5.5% in 1Q23. The overall economy recorded a slower growth compared to 5.1% in 4Q23 with all key sectors thinning in performance. Leading indicators point to a resilient performance in the Kenyan economy; pegged on the growth in agricultural sector expansion.
Inflation
Headline inflation rose for the first time in seven months, albeit marginally, to 4.4% in August from 4.3% in July 2024. The rise is largely attributable to higher fuel prices while food inflation decelerated m/m. We reiterate that we expect the annual inflation rate to oscillate within the mid-point (5.0%) of CBK’s target range supported by favourable weather.
Interest Rates
Rates on short term papers continued to taper down, with the accepted rates on the 91, 182 and 365 day papers closing the month of August at 15.78%, 16.63% and 16.84%, down 0.21, 0.01 and 0.08 percentage points month-on-month (m/m). The drop in yields mirrors CBK’s policy rate cut of 0.25% earlier in the month as well as broad market sentiment of lower interest rates going forward.
Outlook
Rates on government securities should remain elevated as interest rates remain high. The money market fund rate is therefore expected to gradually increase as maturities are repriced to reflect the high rates.
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.
