Unit Trust Funds Performance- Q3’2020
Feb 21, 2021
Unit Trust Funds (UTFs) are collective investment schemes that pool funds from many different investors and are managed by professional Fund Managers. The fund managers invest the pooled funds in a portfolio of securities with the aim of generating returns in line with the specific objectives of the fund. Following the release of the Capital Markets Authority (CMA) Quarterly Statistical Bulletin – Q4’2020, we examine the performance of Unit Trust Funds, as the total Assets Under Management (AUM) have been steadily increasing and they are among the most popular investment options in the Kenyan market. We will further analyze the performance of Money Market Funds, a product under Unit Trust Funds. In our previous focus on Unit Trust Funds, we looked at theFeb 14, 2021
The real estate residential sector has witnessed numerous trends that are gradually being embraced with changing times and customer preference, with individuals looking for developments with unique features that help improve their quality of life. Lifestyle communities aim at offering a comprehensive and luxurious work, live and play environment and are differentiated by their location, unit size and designs, quality of finishes, array of amenities and facilities and thus have an associated feel of prestige. This week we shall focus on the lifestyle community concept with the aim of explaining what they are, highlighting their performance within the Nairobi Metropolitan Area and providing recommendations on their viability as a real estate investment. We shall look into; Introduction to Lifestyle Communities, Lifestyle Communities in the Nairobi Metropolitan Area and Factors Driving Them, Challenges facing Development of Lifestyl...Feb 7, 2021
With the emergence of COVID-19, measures to reduce the spread of the virus such as: social distancing, working from home and minimizing physical touch, have been put in place by most governments and consequently, this has led to the adoption of cashless payment systems. According to the Central Bank of Kenya (CBK), since March 2020, the country has witnessed a rapid increase in mobile and digital payments with the monthly volume of Person-to-person transactions increasing by 87.0% to hit Kshs 684.5 bn. On 28th December 2020, CBK circulated the draft Kenya National Payment System Vision and Strategy 2021-2025, a strategy document which sets out the vision and strategic initiatives for the National Payment System for the next five years (2021-2025) for comments from the public up to 29th January 2021. This move by the Central Bank is aimed at beefing up re...Jan 24, 2021
Introduction Overview of the Land Sector in Kenya Land plays a significant role in the socio-economic and political development of the country. Therefore, its ownership, allocation, distribution and utilization is of great concern to most Kenyans thus making it one of the contentious issues that requires a lasting solution in effective legal and institutional framework. Land is either public, private or community land, with ownership being either on a freehold tenure which gives the holder absolute ownership of the land for life, or leasehold tenure in which the interest in land for a specific period is subject to payment of a fee, rate or rent to the grantor. The National Land Policy in Kenya recommends leases of not more than 99 years with a possibility of extension when the lessee applies for an extension of term before the...Cytonn Note on the 27th January 2021 Monetary Policy Committee (MPC) Meeting
Jan 20, 2021
The Monetary Policy Committee (MPC) is set to meet on Wednesday, 27th January 2021, to review the outcome of its previous policy decisions and recent economic developments, and to decide on the direction of the Central Bank Rate (CBR). In their previous meeting held on 26th November 2020, the committee decided to reconvene in January 2021, while highlighting that they would remain ready to reconvene earlier if necessary, as they continue to closely monitor the impact of the policy measures. Additionally, the MPC maintained the CBR at 7.0% citing that the accommodative policy stance adopted in March, and all the other sittings in 2020, which saw a cumulative 125 bps cut, was having the intended effects on the economy. This was in line with our expectations as per our MPC Note with our view having being informed by: Inflation has remained with the bank’s target of 2.5% -7.5% on account of the stable food...