MARKET WRAP-UP REPORT – JANUARY 2025

1. MONEY MARKETS FUNDS

   The average daily effective rate for MMFs dropped to 12.19% p.a. in January, signifying the drop of Treasury Bill (T-bill) Interest Rates which form a significant component of MMF yields due to their low-risk, short-term nature.

   Cytonn Money Market Fund continues to outperform its peers, achieving an average daily return of 15.35% p.a. (netting 13.05% p.a.). Lofty Corban lost its second position to Gulfcap Money Market fund which averaged 15.06% netting 12.80%. Lofty Corban came in 3rd (14.93%), Etica (14.87%) and Kuza (14.31%)

Past performance should not be used as a guide to future investment performance

Note

Money Market Funds remain a compelling choice for investors who prioritize:

1. Liquidity: Easy access to funds for unforeseen needs.
2. Stability: Limited exposure to market volatility compared to equity-focused funds.

However, the recalibration of expectations is crucial. With average returns trending downward, investors may need to lower their return expectations or supplement their strategies with complementary investment vehicles.

Dollar Money Market Fund Returns
For the Dollar Money Market Funds, Kuza  MMF USD fund secured the top position with an average return of 6.69%, followed by Etica,  Lofty Corban, Dry Associates and Sanlam MMF USD which posted daily average returns of 6.33%, 5.90 %, 5.62%, and 5.14% per annum, respectively.

Past performance should not be used as a guide to future investment performance