October 2024 Market Wrap-up Report

 MARKET WRAP-UP REPORT – Oct 2024

1. MONEY MARKETS FUNDS

Money Market Fund rates continued on a decline streak, with the overall average daily effective rate falling to 14.21% compared to September’s return of 14.48% p.a. The decline is due to a drop in Treasury Bill (T-bill) returns, as money market funds (MMFs) rely heavily on T-bills for their low risk and short-term nature. When T-bill rates fall, MMF returns also decrease, since T-bill income is a major part of MMF yields.

In terms of performance, The Lofty Corban and Cytonn Money Market Funds took a leading position for the month of October, posting an average daily return of 16.64% per annum, translating to a net return of 14.15% per annum after tax. Etica, Arvocap, and Kuza Money Market Funds followed closely, with daily average effective rates of 15.95%, 15.78%, and 15.73%, per annum, respectively.

Dollar Money Market Fund Returns
For the Dollar Money Market Funds, Kuza MMF USD fund secured the top position with an average return of 6.79%, followed by Etica, Dry Associates, Lofty Corban and Jubilee MMF USD which posted daily average returns of 6.72%, 6.22%, 6.20%, and 6.03% per annum, respectively.

Fixed Income Funds

The Kuza Fixed Income Fund delivered a return of 14.96% per annum, followed by Madison, Etica,  Nabo, and Zimele Fixed Income Funds, which recorded average daily effective returns of 14.70%, 14.62%, 14.19%, and 13.36% per annum, respectively.