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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 |
2.25% |
|
Annual Management Fee |
2.00% |
|
Distribution |
Quarterly |
Who should invest?
Investors who are seeking ;
- Typically ready to invest over the medium to long-term.
- Need extra returns at moderate risk.
- Seek to benefit from a well-diversified portfolio of market instruments.
Fund Outlook
The fund continues to be conservative, being overweight short-term near cash assets cognizant of the downturn in the equity market due to the impact of currency depreciation and low USD liquidity which continue to weigh on market prices.
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.
Equities
Market performance declined further in 2023 with all market indices dipping year-on-year; NASI shed 27.5%, NSE 25 shed 24.0%, NSE 20 shed 10.4% and the new N10 index launched on 1st September 2023 to track the top-ten most liquid counters lost 92.49 points or 9.2%. The market continues to be largely affected by foreign investor outflows due to global risk aversion, KES depreciation combined withcentral banks’ stance to sustain high rates in advanced economies.
Fund Performance
Fixed Income 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 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
