1. MONEY MARKET FUNDS
In the month of July 2023, Enwealth Money Market Fund was the best-performing MMF with an average Effective Daily Yield of 11.43%.
In second place were Etica Money Market Fund and Cytonn Money Market Fund, both recording an average Effective Daily Yield of 11.41%. The third best-performing MMF was the Apollo Money Market Fund with an average Effective Daily Yield of 10.95%.
To note, to get the true rate of a money market fund, remove the withholding tax of 15% from the announced yield. Some funds though report net return after the withholding tax.
|FUND MANAGER||MONEY MARKET FUND||Avg. Daily Yield %|
|1||Enwealth Financial Services||Enwealth Money Market Fund||11.43|
|2||Etica Capital Limited||Etica Money Market Fund||11.41|
|3||Cytonn Asset Managers Limited||Cytonn Money Market Fund||11.41|
|4||Apollo Asset Management Company Limited||Apollo Money Market Fund||10.95|
|5||GenAfrica Asset Managers Limited||GenAfrica Money Market Fund||10.77|
|6||Jubilee Financial Services Limited||Jubilee Money Market Fund||10.75|
|7||Madison Investment Managers Limited||Madison Money Market Fund||10.64|
|8||Zimele Asset Management||Zimele Money Market Fund||10.56|
|9||Old Mutual Investment Group||Old Mutual Money Market Fund||10.50|
|10||Co-op Trust Investment Services Limited||Co-op Money Market Fund||10.45|
|11||Kuza Asset Management Limited||Kuza Money Market Fund (KES)||10.45|
|12||Nabo Capital Limited||Nabo Africa Money Market Fund||10.23|
|13||African Alliance||African Alliance Kenya Money Market Fund||10.19|
|14||Genghis Capital||GenCap Hela Imara Fund||10.10|
|15||Sanlam Investments East Africa Limited||Sanlam Money Market Fund||10.06|
|16||KCB Group||KCB Money Market Fund||9.86|
|17||ICEA Asset Lion Asset Management Limited||ICEA Lion Money Market Fund||9.84|
|18||CIC Asset Managers Limited||CIC Money Market Fund||9.48|
|19||ABSA Bank||Absa Shilling Fund MMF||9.41|
|20||Britam Asset Managers (Kenya) Limited||British-American Money Market Fund||9.21|
|21||Orient Asset Managers||Orient Kasha Money Market Fund||9.04|
2. FIXED-INCOME SECURITIES
• TREASURY BONDS
TAP SALE – FXD1/2023/5 & RE-OPENED FXD1/2016/10
In the primary market for the month of July, the Government was looking to raise KES 20.00Bn for budgetary support through the Tap sale of FXD1/2023/5 and FXD1/2016/10.
Particulars of the Bonds
|Name||Duration (years)||Coupon Rate|
● The minimum amount an investor could invest was KES. 50,000.
•Interest earned from the FXD1/2023/5 is subject to a withholding tax rate of 15%
•Interest earned from the FXD1/2016/10 is subject to a withholding tax rate of 10%
In the primary market, the tap sale of the newly issued FXD1/2023/005 and the reopened FXD1/2016/10 were oversubscribed recording a 217.20% subscription with the CBK accepting KES 43.44Bn.
The oversubscription can mainly be attributed to investors continuing to prefer higher risk adjusted returns.
• TREASURY BILLS
WEEK 1 – 03/07/2023
T-bills were undersubscribed recording an overall decreased subscription rate of 39.54% from 63.91% recorded in the previous week.
WEEK 2 – 10/07/2023
T-bills were oversubscribed recording an increased overall subscription rate of 125.49% from 39.54% recorded in the previous week.
WEEK 3 – 17/07/2023
T-bills were oversubscribed for the second week recording an overall increased subscription rate of 151.85% from 125.49% recorded in the previous week.
WEEK 4 – 24/07/2023
T-bills were oversubscribed for the third week recording an overall increased subscription rate of 164.50% from 151.85% recorded in the previous week
WEEK 5 – 31/07/2023
T-bills were undersubscribed recording an overall decreased subscription rate of 38.10% from 164.50% recorded in the previous week.
Investors continued to show preference to the shorter-term 91-day paper, which can be attributed to investors continuing to see short-term risks in the market especially due to the heightened political risk in the country.
During the month of July, the equities market recorded a mixed trend with NASI declining by 1.41% and NSE-20 gaining marginally by 0.15%.
Top Gainers for the month included Olympia Capital Holdings (+27.88%) driven by positive FY’23 results, Carbacid Investments (+22.02%) following commencement of hearing of its disputed case with BOC Kenya by the CMA tribunal, East African Cables (+20.25%), East African Portland Cement (+18.54%) and Eaagads (+16.67%).
Top Losers for the month included Sasini (-18.33%) mainly driven by a sharp decline in profit in HY’23, Longhorn Publishers (-14.29%) following the announcement of a profit warning, Home Afrika (-14.29%), Standard Group (-11.57%) and BOC Kenya (-11.38%).
Read more on our outlook on the Equities market in Kenya here: