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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 5,000,000 |
Minimum Additional Investment | Ksh 1,000,000 |
Initial Fee | 0 |
Annual Management Fee | 2.00% |
Distribution | Semi - Annual |
Fund Objective
- Capital preservation
- Enhanced level of return with slightly elevated risk profile compared to Money market.
- Ideal for short term cash management.
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 high interest rate environment.
Fund Performance
Asset Allocation
Yield Curve
Maturity Profile
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.
