July 2024 Market Wrap-up Report

1. MONEY MARKETS

Money market fund rates have been on a consistent upward trend, with the average daily effective rate rising to 14.45% per annum in July, up from June’s average of 14.24% per annum.

The Lofty Corban Money Market Fund has maintained the lead for yet another month with an average daily return of 16.92% per annum, resulting in a net return of 14.37% after tax. It was followed by Etica, Cytonn, Kuza, and Apollo Money Market Funds, which recorded daily average effective rates of 16.86%, 16.80%, 16.05%, and 15.57% per annum, respectively.

Daily Average Yields for MMFs in July

Dollar Money Market Fund Returns

Etica MMF USD fund claimed the top spot with an average return of 8.20%, followed by Kuza, Jubilee, Cytonn, and Lofty Corban MMF USD with daily average returns of 7.02%, 6.74%, 6.61%, and 6.40%, p.a. respectively.

Fixed Income Funds

Kuza Fixed Income Fund had an impressive return of 15.10%, followed by Jubilee, Etica, Madison and Zimele Fixed Income Funds, posting average daily effective returns of 15.08%, 14.89%, 14.79% and 13.38 % p.a., respectively.

Special Funds

In the special funds category, Lofty-Corban Special MMF topped the table with a return of 16.85%.

Special Funds are unique in that they are given leeway to develop their asset allocation but with CMA guidance and oversight. Unlike traditional funds, which often adhere to rigid asset allocation models, Special Funds can craft and adjust their portfolios according to their unique investment objectives and market conditions.

This flexibility allows fund managers to respond more dynamically to market opportunities and risks.