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Market Commentary
Key Features
Fund Manager | CIC Asset Management Ltd |
Launch Date | Jun - 11 |
Risk Profile | High |
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 | 2.50% |
Annual Management Fee | 2.00% |
Distribution | Semi-Annual |
Asset Under Management | KES 203 Million |
Fund Objective
- Long-term investments
- Long-term capital growth at high risk
- 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.
GDP
– The CBK upwardly revised the 2023 real GDP growth estimate by 10 basis points to 5.6% while in 2024, growth is estimated to touch 5.7% . Leading indicators point to continued economic growth in the first quarter of 2024, reflecting robust activity in the agriculture and service sectors.
Inflation
– The average y/y inflation for 1Q24 stood at 6.3%, the slower growth in the general price levels was largely due to the deceleration in both food & fuel inflation which led to a slow down in the food and transport indices.
Interest Rates
– – The CBK upwardly revised the 2023 real GDP growth estimate by 10 basis points to 5.6% while in 2024, growth is estimated to touch 5.7% . Leading indicators point to continued economic growth in the first quarter of 2024, reflecting robust activity in the agriculture and service sectors.
Equities
The market closed the quarter on an upward trend with the NASI, the N10, N20 and the NSE 25 gaining 22.78%,27.32%, 16.74% and 25.01% respectively. The market continues to be largely affected by foreign investor outflows which stood at USD 15.8 million this is largely due to global risk aversion that is flight to safety coupled with central banks’ stance to sustain high rates in advanced economies. We expect the local bourse to rebound on the back of improved macro economic factors locally.
Fund Performance
Asset Allocation
Equities Allocation by Sector
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
