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 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
Real GDP expanded by 5.0 per cent in 1Q24 compared to 5.3% in 1Q23 (vs 5.5% in 4Q23). The positive growth was primarily notable in the
Agriculture sector +6.1%y/y on increased tea, milk, sugarcane production, though weighed by lower coffee and flower exports. Notable growth was also noted in real estate +6.6%y/y, financial and insurance services +7.0%y/y, ICT +7.8%y/y, accommodation and food services +28.0%y/y.
Inflation
Inflation decelerated, hitting a near 4-year low, due to slower growth in food and fuel prices. June inflation print came in at 4.6% compared to a restated 5.0% in May. 1H24 inflation averaged 5.6% vs 8.5% in 1H23. We anticipate the annual inflation rate to oscillate within the mid-point (5.0%) of CBK’s target range supported by the declining food and fuel inflation.
Interest Rates
Relative price stability combined with fairly decent economic growth prospects prompted the MPC to retain the Central bank rate at 13%. The increase in short-term papers has been somewhat moderate, with the 91, 182 and 365 day papers closing the first half of the 2024 at 15.98%, 16.76% and 16.79% respectively.
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. Interbank rates are still on the rise pointing to higher rates in the near term.
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.
