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    Money Market Fund Fact Sheet - Q1 2018

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    nathaniel07
    CIC Money Market Fund Fact Sheet for March 2018: - The fund seeks to preserve capital with low risk and provides a monthly yield of 9.51% by investing in short-term government securities and liquid instruments. - Kenya's economy slowed in Q3 2017 but is expected to grow 5.57% in 2018, supported by improved political stability and inflows. Inflation eased to 4.18% while interest rates were cut. - The fund is suitable for investors seeking capital stability and preservation over the short term who are risk averse. It offers liquidity, flexibility, security, and competitive returns from institutional rates.

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    Money Market Fund Fact Sheet - Q1 2018

    Uploaded by

    nathaniel07
    41 views1 page
    CIC Money Market Fund Fact Sheet for March 2018: - The fund seeks to preserve capital with low risk and provides a monthly yield of 9.51% by investing in short-term government securities and liquid instruments. - Kenya's economy slowed in Q3 2017 but is expected to grow 5.57% in 2018, supported by improved political stability and inflows. Inflation eased to 4.18% while interest rates were cut. - The fund is suitable for investors seeking capital stability and preservation over the short term who are risk averse. It offers liquidity, flexibility, security, and competitive returns from institutional rates.

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    Kenya market

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    CIC Money Market Fund Fact Sheet for March 2018: - The fund seeks to preserve capital with low risk and provides a monthly yield of 9.51% by investing in short-term government securities and liquid instruments. - Kenya's economy slowed in Q3 2017 but is expected to grow 5.57% in 2018, supported by improved political stability and inflows. Inflation eased to 4.18% while interest rates were cut. - The fund is suitable for investors seeking capital stability and preservation over the short term who are risk averse. It offers liquidity, flexibility, security, and competitive returns from institutional rates.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    41 views1 page

    Money Market Fund Fact Sheet - Q1 2018

    Uploaded by

    nathaniel07
    CIC Money Market Fund Fact Sheet for March 2018: - The fund seeks to preserve capital with low risk and provides a monthly yield of 9.51% by investing in short-term government securities and liquid instruments. - Kenya's economy slowed in Q3 2017 but is expected to grow 5.57% in 2018, supported by improved political stability and inflows. Inflation eased to 4.18% while interest rates were cut. - The fund is suitable for investors seeking capital stability and preservation over the short term who are risk averse. It offers liquidity, flexibility, security, and competitive returns from institutional rates.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    CIC ASSET MANAGEMENT LTD –CICAM

    CIC Money Market


    FACT SHEET MARCH 2018

    Key Features Fund Performance


    Fund Manager: CIC Asset Management Ltd.
    Launch Date: Jun-11
    Risk Profile: Low
    Trustee: Kenya Commercial Bank
    Custodian: Co-op Custodial Services
    Auditors: Ernst & Young
    Minimum Investment: Kshs 5,000.00
    Minimum Additional Kshs 1,000.00
    Investment:
    Initial Fee: Nil
    Annual Management Fee: 2.0%
    Effective Annual Yield: 9.51%
    Distribution: Monthly
    Market Commentary Asset Allocation
    GDP: Kenya’s economy slowed to 4.4% in Q32017 compared to 5.6% in
    a similar quarter in 2016. The quarter in review was characterized by
    moderate increases in food prices despite poor weather conditions and a
    prolonged electioneering period which kept growth at its slowest pace in
    six years. We expect 2018 GDP to come in at 5.57% on the back of ex-
    pected improvement in key sectors such as agriculture, manufacturing and
    construction; as well as an improved political climate.

    Exchange rates: The Shilling gained against the dollar supported by; horti-
    culture exports and steady dollar inflows. There was further support by
    positive sentiments from an improved political landscape, the receipt of
    Eurobond funds & the extension of the USD 1.5Bn IMF pre-cautionary facil-
    ity. According to the CBK, the country’s forex reserves rose to stand at USD
    8.8Bn (equivalent to 5.91 months of import cover) following a USD 1.65Bn
    drawdown of the Eurobond proceeds. These reserves together with the IMF
    facility provide an adequate buffer to the shilling, which will continue to
    be supported by diaspora inflows and lower dollar demand.

    Inflation: eased further to 4.18% in March 2018 from 4.5% in December Who should invest?
    2017. Food inflation, the key component of this inflation basket, abated Investors who are seeking:
    2.19% from 3.83% y/y while the non-food, non-fuel indices remained  Capital preservation whilst not seeking long-term capital
    mute suggesting that core inflation remained largely contained. Risks may growth.
    however stem from higher fuel prices which could inflate transport as well  A high degree of capital stability and who are strictly
    as production costs, with ripple effects on most commodities. The rate is
    risk averse.
    expected to decline further with additional moderation in food pressure as
    supply improves following the onset of the long rains.  A short-term parking bay for surplus funds particularly
    in times of market volatility.
    Interest rates: The MPC unexpectedly lowered the CBR by 50bps to 9.5%.
    This was the first easing cycle following the introduction of rate caps. This Key benefits
    effectively had mixed reactions to short term rates; with the 91 & 182 day  Liquidity: The client is able to withdraw their funds at
    T-bills declining to 8% & 10.38% respectively, while the 364 day bill was short notice with no penalty fees.
    up to 11.13%. There was reduced bids uptake by the Treasury which sup-
     Flexibility: The client is able to switch or transfer funds
    ported conservative bidding. The MPC may want to assess the impact of
    the recent rate cut before making any adjustments to its policy rate; par- to another fund that he/she may have with CICAM.
    ticularly with private sector credit growth having decelerated to 2.1% in  Security: The fund invests in government paper and
    February 2018. We expect that any further decline in rates will be sup- liquid instruments.
    ported by the prevailing high liquidity.  Competitive Returns: Interest is calculated daily and
    credited at the end of each month. As an institutional
    Outlook: The average return on the fund stood at 9.51% in March 2018. client, the fund benefits from placing deposits in large
    Rates on short term treasuries came down despite continued government
    sums and as such is able to negotiate for competitive
    borrowing which impacted the return on the fund. We expect the low rates
    to persist in the medium term thus lowering the return on the fund. rates.
     Professional fund management: prospective investors
    benefit from the expertise of our seasoned profession-
    als.
    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.

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