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CMMF Fact Sheet June 2020

Jul 1, 2020

1. FUND PERFOMANCE AVERAGE 2019 JUNE 2020 (ANNUALIZED RETURN) *PERFORMANCE SINCE INCEPTION (01-NOVEMBER-2017) Cytonn Money Market Fund (KES) 10.9% 10.7% 11.1% Benchmark ( Average 91 day T- Bill + 1.0% point)

Financial Planning Amidst COVID-19

Jun 28, 2020

Introduction Financial planning is the systematic approach towards managing one’s finances by allocating resources in a systematic and disciplined manner in order to achieve one’s financial goals and objectives. A sound financial plan is important as it helps reduce and possibly eliminate financial distress that may arise from various responsibilities and unexpected situations. Earlier in February 2020, we had discussed this topic on our Personal Financial Planning topical, however, in light of the ongoing Coronavirus pandemic that has wreaked havoc in individual’s businesses, savings and financial planning efforts, we found it timely to reiterate the topic keeping in mind the new operating environment. The novel COVID-19 has greatly affected the global economy with the International Monetary Fund projecting the global economy to contract by 3.0% in 2020, a...

Impact of COVID-19 Pandemic on Real Estate Funds

Jun 21, 2020

The COVID-19 pandemic started more as a global health crisis and has now triggered severe economic recessions as the impact of the pandemic continues to be significant. The Organization for Economic Co-operation and Development (OECD) in their OECD Economic Outlook, June 2020, expect global growth for 2020 to contract by 7.6% if there is a second wave of infections before end of the year and a 6.0% contraction if a second wave is avoided. There has not been any particular country or region that has been spared due to the lockdowns, which have significantly impacted trade and supply chains leading to declines in investments across the board since the beginning of the pandemic, with the S & P 500 having declined by 4.1% on a Year to Date (YTD) basis. Commodity prices have also been on a decline, with Oil recording consistent price declines resulting from low demand due to the lockdown measure. The Real estate sector, which has be...

Cytonn Note on the Monetary Policy Committee (MPC) Meeting for June 2020

Jun 19, 2020

The Monetary Policy Committee (MPC) is set to meet on Thursday, 25th June 2020, to review the outcome of its previous policy decisions and recent economic developments, and to make a decision on the direction of the Central Bank Rate (CBR). In their previous meeting held on 27th May 2020, the committee decided to reconvene within a month for an early assessment of the impact of these measures and the evolution of the COVID-19 pandemic. In the last sitting, the MPC maintained the CBR at 7.00% citing that the accommodative policy stance adopted in March and April 2020 sittings, which saw a cumulative 125bps 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 stability, with the inflation rate having remained within the government’s target range...

CMMF Fact Sheet May 2020

Jun 18, 2020

FUND PERFORMANCE   * 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 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 con...