Topicals



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Recent Topicals

Student Housing Market in Kenya

Mar 8, 2020

Student Housing, or purpose-built student accommodation (PBSA), refers to housing that has been designed specifically to meet the demands and requirements of the modern-day student. The concept has gained much traction globally and has become a mainstream investment class asset gaining more attention from institutional investors especially in developed European markets and the United States, driven by the huge student enrolment numbers and a failure on the institutions’ part to provide accommodation that is commensurate with the increase in student enrolment populations. For instance, the US market registered 19.8 mn students in 2019, of which 1.5 mn were international, against a student housing supply of 2.7 mn. Generally, the US, UK and Australia markets accounted for the largest share of international students in 2019 with 26.0%, 12.0%, and 8.0%, respectively. Other factors influencing the growth include high rental yields in comparison to ot...

Regulated versus Unregulated Markets

Mar 1, 2020

We often get questions from investors about regulated versus unregulated markets. In this week’s topical, our Research Team seeks to educate the general public about these two types of markets/investment categories, which are complementary and important to well-functioning financial markets. As such, we shall discuss the following: Regulated and Unregulated Investment Categories, Pros and Cons of Each Investment Category, Issues to Consider for Each Category, Myths About Each Category, Conclusion. Section I: Regulated and Unregulated Investment Categories Investment markets from a regulatory point of view can be divided into two large categories, regulated and unregulated markets. Regulated markets are overseen by a regulator to protect the public interest in those markets, hence they are also loosely referred to as public markets. Produ...

Personal Financial Planning

Feb 23, 2020

More often than not, we face various financial obligations in different stages of life ranging from medical expenses, education expenses, and other miscellaneous expenses. In our Cytonn Weekly #07/2020, we focused on Education Investment Plans in Kenya and elaborated on why one should invest in an education plan.  This week, we revisit the Personal Financial Planning topic where we discuss the importance of financial planning, the various considerations to make based on one’s own characteristics, needs and preferences and some of the investment avenues available. Therefore, we shall be discussing the following: What is Personal Financial Planning and Why is it Important? The Financial Planning Process, The Key Considerations to M...

Education Investment Plans in Kenya

Feb 16, 2020

This week, we seek to analyze education investment plans, why one should invest in an education plan, some of the options available for investors and the various factors that come into play when selecting an education plan. We also focus on asset allocation strategies that fund managers employ when investing the funds in education investment plans. We do this in six sections as follows: Background of Education Sector and Laying of Context, Enrolment and Literacy Statistics Globally and in Kenya, Constitution of Education Investment Plans, Key Things to Consider before Joining an Education Investment Plan, Alternatives to Education Investment Plans, and Conclusion Section 1: Background of Education Sector and Laying of Context Education is a key aspect in any economy, with the Kenyan government making significant allocations towards education expenditure in every fiscal year. Ove...

Master-Planned Communities

Feb 9, 2020

Homebuyers in the residential and hospitality markets, which have experienced tremendous change over the years, are now keen on serene locations and developments that provide them with comprehensive lifestyle amenities such as retail center, gym, clubhouse, open community spaces, and a swimming pool; with the choice of housing having shifted from the traditionally preferred bungalows to Master-Planned Communities. When you think of a master-planned community, what comes to mind? Things like massive developments, security, safety and exclusivity will probably feature somewhere on that list. But what else lies behind those beautiful gates and the seemingly perfect quaint homes? The concept has been gaining significant popularity in the Kenyan market, during the week, Cytonn’s master-planned development affiliate, Superior Homes Kenya, launched their hospitality master-planned community, Pazuri at Vipingo, situated at the exclusive Vipingo Ridge. Therefore, for this week,...