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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 | 0% |
Annual Management Fee | 2.00% |
Distribution | Semi-Annual |
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
In Q3 2023, economic activity grew by 5.9% with positive effects from a recovery in the agricultural sector and tourism receipts. CBK projections show that Kenya’s annual real GDP growth is expected to come in at 5.5% in 2023.
Inflation
The inflation rate closed the year at 6.6% which was within the upper bound of CBK’s target 7.50%. The disinflation was largely due to a slower growth in the food & non-alcoholic beverages following improved supply from better weather conditions.
Interest Rates
In 4Q23, the short term tenors closed at 15.88%, 15.97% and 15.90% for the 91, 182 and 364-day papers. Investors remained biased towards short maturities.
Outlook
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 inter-est rate environment. The fixed income fund will face some negative valuation movements as rates on government securities continue rising but is however antici-pated 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
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 guarantee on the client’s capital as the performance of units in the fund is determined by change in the value of underlying investments hence value of your unit trust investment
