Topicals



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Recent Topicals

Unit Trust Funds Performance- Q2’2020

Nov 15, 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 Q2’2020, we examine the performance of Unit Trust Funds, as 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, currently the most popular in terms of Assets Under Management, with 89.6% of the UTF market as at Q2’2020. In our previous focus on Unit Trust Funds, we looked at the Q1’2020 Performance by Unit Trust Fund Managers. In this topical, we focus on the Q2’2020 performance by Unit Trust Fund Managers, where we shall analyze the following:

Kenya Mortgage Refinance Company Recap

Nov 8, 2020

Kenya Mortgage Refinance Company (KMRC), a treasury backed lender, began lending in September 2020, following approval to operate by the Central Bank of Kenya. The facility was established in 2018 and we have since written two topical on the same before it became operational, the Kenya Mortgage Refinancing Company Note and the Kenya Mortgage Refinancing Company Update.  In this week’s topical, we do a recap on the facility by covering the following; Overview of Housing Sector in Kenya, Home Financing in Kenya, Introduction to KMRC, The KMRC Objectives, Benefits and Challenges of KMRC, Case Study of Saudi Real Estate Refinance Company, Lessons Learnt from The Case Study, and, Conclusion.

CHYF Fact Sheet October 2020

Nov 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 October-2020

Nov 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 conservativ...

Sub-Saharan Africa (SSA) Eurobonds: Q3’2020 Performance

Oct 21, 2020

Background According to the International Monetary Fund’s (IMF) World Economic Outlook (WEO) Update June 2020, the global economy is projected to contract at a rate of (4.9%) in 2020, 1.9% lower than their initial outlook of (3.0%) in April 2020, highlighting that the COVID-19 pandemic has had a more severe impact on activity during the first quarter of the year than anticipated. During the second quarter of the year, the pandemic worsened in many countries while it leveled off in others necessitating stringent lockdowns and resulting to even larger disruptions to activity than forecasted earlier. Additionally, most economies have had to postpone fiscal consolidation strategies and re-direct funds to fight COVID-19, furthermore, the depreciation of local currencies has made it more expensive for countries to settle their debt obligations, leading to wider fiscal deficits. 2020 has been a year where s...