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Recent Topicals

Understanding Collective Investment Schemes

Sep 27, 2020

Introduction The Capital Markets Authority recently updated its guidelines of Collective Investments Schemes (CIS) on matters affecting valuation, performance measurement and reporting by Fund Managers in a bid to encourage international best practice in the capital markets through standardization. This move by the regulator was necessitated by the feedback and observations they have received and made from the market. Aside from enhancing accountability and transparency in the reporting of CIS’ performance, the guidance will also be critical for investor protection and encourage the fair treatment of customers. As such, we felt the need to shed some light on the collective investment space, as an update to the previous work we have done on the same where, in May 2019, we wrote about

Kenya Real Estate Developers Regulatory Board

Sep 20, 2020

In July 2020, a committee appointed by the Principal Secretary, State Department for Housing and Urban Development, recommended the establishment of the Real Estate Developers Regulatory Board, “REDRB” by October 2020 through an executive order subject to the Cabinet’s approval. In this week’s topical, we focus on the Board by covering; A Brief Overview of the Kenya Real Estate Sector; Functions of the Real Estate Developers Regulatory Board; Expected Benefits and Challenges of the Regulatory Board; Case Studies; United Arabs Emirates (UAE)-Dubai Real Estate Regulatory Agency (RERA) Jamaica Real Estate Board Lessons for Kenya from the case of UAE and Jamaica; Conclusion.  A Brief Overview of

Kenya Listed Banks H1’2020 Report

Sep 12, 2020

Following the release of the H1’2020 results by Kenyan listed banks, the Cytonn Financial Services Research Team undertook an analysis on the financial performance of the listed banks and identified the key factors that shaped the performance of the sector, and our expectations of the banking sector for the rest of the year. Core Earnings per Share recorded a weighted decline of 33.6% in H1’2020, compared to a weighted growth of 9.0% recorded in H1’2019. As reported by most of the banks, the decline in the earnings was mainly attributable to the increased provisioning on the back of the subdued business environment. Asset quality for listed banks deteriorated in H1’2020 with the gross NPL ratio rising by 1.6% points to 11.6% from 10.0% in H1’2019. This was high compared to the 5-year average of 8.5%. The banking sector was also keen on restructuring loans in order to offer relief for its customers against the effects of COVID-19. The loan restru...

CHYF Fact Sheet August vf

Sep 2, 2020

1. FUND PERFOMANCE *Historical Percentage you can expect to earn with the fund during one year of investment on basis of the so far realized monthly returns 2. FUND MANAGER’S REPORT AND OUTLOOK Fund Objective The Cytonn High Yield Fund is a specialized Collective Investment Scheme with exposure skewed towards investment in real estate assets. The Fund aims at capital preservation while earning high returns and maintaining sucient liquidity. The Fund aims to achieve above average returns that not only beat inflation but are also better than the yields oered by both government securities and fixed deposit. Portfolio Strategy The fund will largely be invested in fixed income and real estate related securities. Being a specialized Fund,...

CMMF Fact Sheet August

Sep 2, 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 institutional clients. The Fund will also be managed conservatively with active ma...