CMMF Fact Sheet June 2021

By Research Team, Jul 1, 2021

CMMF Fact Sheet June 2021


* Percentage you can expect to earn with the fund during one year of investment on basis of the so far realized monthly returns since inception.


Fund Objective

The Cytonn Money Market Fund is a low-risk fund that seeks to obtain a high level of current income while protecting investor’s capital and liquidity.

Portfolio Strategy

The portfolio objective will be to outperform the income yield available on money market call accounts and fixed deposit accounts by investing in interest-bearing securities and other short-term money market instruments. These securities are usually available to the wholesale or institutional clients. The Fund will also be managed conservatively with active management of duration, credit and liquidity risks.

Portfolio Performance

The Cytonn Money Market Fund successfully delivered above-market returns in June 2021, averaging 10.4% p.a. The Fund outperformed the industry average and its benchmark of 91-day T-Bill+1% points at 8.0%.

Economic report and outlook

According to Kenya National Bureau of Statistics (KNBS), the Kenyan economy recorded a 1.1% contraction in Q3’2020 down from a growth of 5.8% recorded in a similar period in 2019. This was the second consecutive contraction, after the 5.7% recorded in Q2’2020, pointing to an economic recession. The overall performance was cushioned by growths in Agriculture, Forestry and Fishing activities which grew by 6.3%; Financial and Insurance activities, 5.3%; Construction, 16.2%; Real Estate Activities, 5.3% and Mining and Quarrying activities, 18.2%. Accommodation & tourism and the Education sectors were the hardest hit, declining by 57.9% and 41.9% respectively. During the month, the yields on the government securities in the secondary market remained relatively stable, which saw the FTSE NSE Kenya Government Bond Index gain marginally by 0.1%, taking the YTD performance to a 1.2% decline. Yields on the shorter dated papers declined, with the 364-day, 182-day and 91-day papers declining by 1.2%, 0.5% and 0.3% points to 7.7%, 7.3% and 6.9%, respectively. During the month, the Kenya Shilling depreciated marginally by 0.2% against the US Dollar to close the month at Kshs 107.9, from Kshs 107.6 recorded at the end of May, mostly attributable to increased demand by commodity importers as compared to the supply of dollars from exporters.

Going forward, Cytonn Asset Managers Limited (CAML) expects the Cytonn Money Market Fund (CMMF) to continue to deliver above-average returns leveraging on optimal asset allocation in line with the Fund’s Investment Policy Statement.

As of 29th June 2021, cash, bank deposits and government securities constituted 61.7% of the portfolio


Disclaimer: Past performance is not a guarantee of future performance and the value of the fund will fluctuate from time to time.