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Recent Topicals

Fintech Amid COVID-19

Aug 23, 2020

Over the past decade, Kenya has transformed into a technology epicenter largely propelled by financial technology (Fintech). This wave has been supported by various success stories such as M-PESA which disrupted the mobile money transfer space globally. This week, we will look at the fintech industry in general, how it has been affected by the spread of the coronavirus and finally, its importance to the general public. Having done related topicals previously i.e. Technology & Investments and Fintech Impact on Kenya’s Financial Services Industry, we decided to look at the topic in the four sections: Introduction: Fintech Industry in Kenya Factors that have shaped the Fintech Industry in Kenya Fintech’s growth during the COVID-19 pandemic...

Focus of the Week: Financial Planning For Retirement

Aug 16, 2020

Retirement Planning is not something we can start later because later is when we retire. In Cytonn Weekly #08/2020, we discussed the importance of financial planning, the various considerations based on one’s own uniqueness, needs and preferences, and some of the investment avenues available. This week, we focus on: how to plan your finances in preparation for retirement given its inevitability, various types of pension schemes and where pension schemes invest. To further explain retirement, we look at the topic in five sections as follows: Introduction: Pensions Industry in Kenya and Benefits of Saving in a Retirement Benefits Scheme, Types of Retirement Benefits Schemes, Pension Historical Performance (Segregated vs Guaranteed) and Asset Allocation, Impact of COVID-19 on Retirement Benefits Scheme, Access To Your Pension Savings, and,

Unit Trust Funds Performance - Q1’2020

Aug 9, 2020

Unit Trust Funds, “UTFs”, are collective investment schemes that pool money together from many investors and are managed by professional Fund Managers, who invest the pooled funds in a portfolio of securities to achieve objectives of the trust. Following the release of Unit Trust Fund Managers’ results for Q1’2020, we examine the performance of Unit Trust Funds, especially Money Market Funds, which is the most popular Unit Trust Funds investment with a market share of 88.2% in Q1’2020, an increase from 87.0% in FY’2019. In our previous focus on Unit Trust Funds, we looked at the FY’2019 Performance by Unit Trust Fund Managers. In this note, we focus on the Q1’2020 performance by Unit Trust Fund Managers, where we shall analyze the following: Performance of the Unit Trust Funds Industry, Performance of Mo...

CMMF Fact Sheet July 2020

Aug 3, 2020

1. FUND PERFOMANCE * 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. 2. FUND MANAGER’S REPORT AND OUTLOOK 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 i...

Nairobi Metropolitan 2020 Residential Report

Jul 26, 2020

This week our focus is on the Nairobi Metropolitan Area (NMA) residential sector. We showcase the sector’s performance in the region in terms of price appreciation, rental yields and market uptake, based on research on 38 areas located within the Nairobi Metropolis. We also look at the recent developments impacting the sector as well as factors that are expected to shape demand and supply and conclude with a look at the investment opportunities as well as the sector’s overall outlook for the next financial year. As such, we shall look at the following: Overview of the Residential Sector, Recent Developments, Residential Market Performance, Investment Opportunity, and Conclusion Section I: Overview of the Residential Sector In 2019, the residential sector was marked by increasing affordability concerns amongst homebuyers amidst rising costs...