Owing to this uncertain environment, our view is that investors should be biased towards short-term to medium-term fixed income securities to reduce duration risk. The faster growth in interest income may be attributable to the increased allocation to government securities. The focus on the concept is supported by; i) student housing deficit which is driven by continued increase in student numbers, ii) expanding middle class leading to growth in disposable incomes thus driving student mobility as more people seek quality higher education, creating more markets for student housing, iii) hedge against economic headwinds as student enrolment increases every year despite the economic climates, and, iv) attractive returns- according to Cytonn’s topical Student Housing Market in Kenya, student housing posted relatively high rental yields averaging 7.4% and surpassing Mixed-use developments (MUDs) and residential sectors with 7.3% and 5.0%, respectively, as shown below: We expect the residential sector to record increased activities supported by the continued launch of projects and focus on student housing accommodation as the real estate sector continues to witness gradual recovery from the effects of COVID-19 pandemic. By ensuring that our investors understand the fine print regarding their investment decisions, each client can weigh up all possible avenues before settling on … Deposits per branch increased by 43.8% to Kshs 2.3 bn, from Kshs 1.6 bn in Q3’2019, with the number of branches increasing by 6 to 300 branches in Q3’2020, from 294 in Q3’2019. During the period of review, Unit Trust’s Assets Under Management (AUM) grew by 15.1% to … Unit Trust products are not insured by PIDM. OUR FEES. These are listed in the “local unit trusts” section on our Latest prices, factsheets and performance page. Unit trust performance is gross profit (or loss); that is, the total Redemption Value minus the Capital Invested. Having a medium risk profile, Balanced Funds carry a high potential for growth in the near future as they are suitable for pension schemes, treasury portfolios of institutional clients, co-operatives, and high-net-worth individuals amongst others, and. The units will include; double and quadruple where students will be sharing study and common rooms. The decline in core earnings per share was higher than our projected decline of 29.5% as the company had a much faster growth of 60.1% in the total operating expenses compared to our projection of 23.6% increase. Lump sum investment performances are quoted. Net Interest Margin (NIM) declined to 7.6% from 8.4% in Q3’2019, owing to the faster 29.2% growth in average interest earning assets which outpaced the 21.8% growth in Net Interest Income (NII). Locate a Branch. In our view, the launch of the project is a sign of investor confidence in Gigiri area which is ideal for diplomats as the target clients working for the various international agencies such as the United Nations (UN). Currently i am doing thesis on Evaluating performance of Equity unit trust funds using KLCI as benchmark form year 2000 – 2010. i need the monthly or yearly return of the selected unit trust funds..i could not find the details anywhere..and i am also confused why the annual return of the fund in master prospect is different from the morningstar website. Dealing costs are shared and all the administration and paperwork is done for you, at a tiny fraction of the expense of doing it yourself. While Equity Funds have the potential to outperform and deliver better returns than Money Market Funds over the medium to long-term, preservation of capital in Money Market Funds is the main contributory factor for its popularity in Kenya. Following the release of Unit Trust Fund Managers’ results for the first half of 2020, we examine the performance of Unit Trust Funds, with a key focus on Money Market Funds, which is the most popular Unit Trust Funds investment with a market share of 89.6% as at the end of Q2’2020, a rise from 88.0% in Q1’2020. Majedie CEO Rob Harris: Performance turns heads and headwinds will abate. The advent of digitization and automation within the industry has enhanced liquidity. This growth was driven by an 83.9% rise in investment in government and other securities to Kshs 236.2 bn, from Kshs 128.5 bn in Q3’2019. The investment opportunity for apartments lies in the lower mid-end market in areas such as Thindigua and South C, which continued to post above-market returns and annual uptake. Transfer your existing retirement savings, What to expect from your portfolio manager, Nedgroup Investments Core Accelerated Fund, Old Mutual Absolute Smooth Growth Portfolio, Old Mutual Multi-managers Enhanced Income Fund, Catalyst Global Real Estate Prescient Feeder Fund, Nedgroup Investments Global Cautious Feeder Fund, Coronation Global Equity Select [ZAR] Feeder Fund. The wide array of awards indicates continued confidence in Kenya’s hospitality industry despite the impact of COVID-19 pandemic. Kenya’s Mutual Funds / UTFs to GDP ratio at 5.4% is still very low compared to global average of 61.8%, showing that we improve and enhance our capital markets. Unit trust performance figures are a key feature of our online information portal. During the week, T-bills were oversubscribed, with the overall subscription rate coming in at 126.6%, up from 115.9% the previous week, mainly driven by the high liquidity in the money markets. All transactions are based on this daily price. Total operating expenses grew by 60.1% to Kshs 52.0 bn, from Kshs 32.5 bn, largely driven by a 242.5% spike in Loan Loss Provisions (LLP) to Kshs 20.0 bn in Q3’2020, from Kshs 5.8 bn in Q3’2019, coupled with a 12.2% rise in Staff costs to Kshs 15.2 bn in Q3’2020, from Kshs 13.6 bn in Q3’2019. Other key take-outs from the report include; Hass Consult also released the Q3’2020 House Price Index, and the key take-outs were; The above findings are in tandem with Cytonn’s Q3’2020 Markets Review Report, which highlighted that the market recorded subdued performance during the quarter due to the tough economic environment evidenced by the (0.1%) decline in prices during the quarter. The equities market performance was driven by gains recorded by EABL, KCB Group, Equity Group and BAT, which gained by 5.5%, 5.3%, 5.1% and 4.3%, respectively. The reports are included in the Documents section of all of our trust product pages. House prices recorded sluggish growth increasing by 0.3% over the quarter and 2.3% on an annual basis, attributable to reduced transactions as investors adopt a wait and see approach in the midst of uncertainty and reduced disposable income. Interest expense rose by 20.8% to Kshs 15.4 bn, from Kshs 12.8 bn in Q3’2019, following a 23.6% rise in interest expense on customer deposits to Kshs 14.0 bn from Kshs 11.3 bn in Q3’2019. Their fund analysis focuses on individual trusts, examining them in detail to create a snapshot picture that investors can use to aid their investment decisions. Acorn Group, a Kenya-based real estate developer, announced that it is set to build two hostels next to the University of Nairobi Chiromo Campus, along Science Crescent Road, off Riverside Road to host approximately 3,000 students. In the hospitality sector, Kenya was voted as Africa’s leading tourist destination in the World Travel Awards, supported by the epic savannah landscapes, wildlife, beaches, and lakes among other tourist attraction destinations; Following the release of Unit Trust Fund Managers’ results for the first half of 2020, we examine the performance of Unit Trust Funds, with a key focus on Money Market Funds, which is the most popular Unit Trust Funds investment with a market share of 89.6% as at the end of Q2’2020, a rise from 88.0% in Q1’2020. In between the stakeholders in … Liquidity in the money markets increased during the week, with the average interbank rate declining by 0.5% points to 2.9%, from the 3.3% recorded the previous week. Key take-outs from the earnings release include; For a comprehensive analysis, please see our KCB Group Q3’2020 Earnings Note, For a comprehensive analysis, please see our Equity Group Q3’2020 Earnings Note. Yet, investors pay active fund managers high fees with the expectation that they can outperform the market. One of the main reasons is the higher returns from money market funds compared to the returns on bank deposits. Top 5 Performing Funds For Short Term Investment (1 - 5 Years) If you’re investing for short term gain, typically within 3 months to 5 years, you must make sure that the fund you’re investing can give a higher return than fixed deposit rate, which averages around 3%. Data as of September 10 th 2018. A unit trust operates under the concept of pooling resources and investing in different interest-earning ventures including equities, bonds, bank deposits, and local and international markets. The yield on the Cytonn Money Market Fund remained unchanged at 10.5%, similar to what was recorded the previous week. The second project will be under the Qwetu brand and it is expected to accommodate approximately 837 students. Kenya Real Estate Retail Sector Report 2019, Q1’2020 Performance by Unit Trust Fund Managers, Capital Markets Authority CMA Quarterly Statistical Bulletin - Q3 2020, Potential Effects of COVID-19 on Money Market Funds. In order to improve our Capital Markets and stimulate its growth, we recommend the following actions: In conclusion, Money Market Funds continue to lead among unit trust products accounting for 89.6% of the total Unit Trust Funds in Q2’2020. For Pension Scheme Trustees and members, we shall be having different industry players talk about matters affecting Pension Schemes and the pensions industry at large. Our investment trust range. Unit Trust Consultant (Agent Code: 30300332) (FIMM No: 022-0-20248) Mobile: +6010-786 8813 Email: [email protected] HQ: Kenanga Investors Berhad (No. According to World Bank data, in well-functioning economies, businesses rely on banks for just 40.0% of their funding with the larger percentage of 60.0% coming from Capital Markets. Banks are not best suited to be Trustees in complex financial products, hence this restrains the market to plain vanilla investments such as bank deposits and government debt, 6th and 7th Floor, The Chancery, Valley Road, Nairobi, Kenya, 3rd Floor, Sohan Plaza, Kimathi Way, Nyeri, Kenya, Suite 1150, 1775 Eye Street NW, USA, Washington DC 20006, USA. Prudential currently has several unit trusts that have consistently returned top-quartile performance (relative to their peer group) over the past 1 – 10 year periods. A unit trust is a fund which adopts a trust structure; not all funds use a trust structure. In our previous focus on Unit Trust Funds, we looked at the Q1’2020 Performance by Unit Trust Fund Managers. The author accepts no liability for any loss arising, whether direct or indirect, caused by the use of any part of the information provided. Given that Balance Funds invest in both the Equities and the fixed income market, the declines recorded in the Equities market has contributed to the slight decline its market share, however, the declines recorded in the Equities Market have been mitigated by the gains recorded in Fixed Income Securities. Download Report. Old Mutual Unit Trusts … This growth can be largely attributable to: According to the Capital Markets Authority, as at the end of Q2’2020 there were 23 approved collective investment schemes made up of 93 funds in Kenya. During the week, Quickmart supermarket opened its latest outlet in Nanyuki Mall, Nanyuki town, as the anchor tenant taking up space left behind by the struggling retailer, Tuskys. The performance was driven by a 50.7% increase in total operating expenses, outpacing the 17.0% growth recorded in total operating income. What is a unit trust? Interest expense, on the other hand, grew faster by 21.2%, compared to 4.3% in Q3’2019. Among unit trust products, Money Market Funds continued to be the most popular product in terms of market share, accounting for Kshs 78.9 bn equivalent to 89.6% of all the funds under management by Collective Investment Schemes for the quarter ended 30th June 2020, an increase from 88.0% in Q1’2020 as shown in the table below; Assets Under Management (AUM) by Type of Collective Investment Scheme (All values in Kshs mns unless stated otherwise). Common types of investments undertaken by unit trusts … The performance in NFI was on the back of declined growth in fees and commission of 5.5%, which was slower than the 22.6% growth recorded in Q3’2019. What percentage of your current income will you require at retirement? Continued uncertainty globally making people prefer holding dollars and other hard currencies. Performance Report. For instance, China’s first online money market fund known as Yu’eBao that has explosively grown into one of the world’s largest MMF with an AUM of USD 185.2 bn as at 30th June 2020, despite being launched in 2013. The real estate sector is expected to continue recording activities driven by the launch of residential projects, focus on student housing, expansion of  local retail chains taking up prime spaces left behind by struggling retailers, and recovery of the hospitality sector  as it leverages on positive accolades. According to Reuters, the yield on the 10-year Eurobond issued in June 2014 remained unchanged closing the week at 4.7%, as was recorded the previous week. In this topical, we focus on the Q2’2020 performance by Unit Trust Fund Managers, where we shall analyze the following: Section I: Performance of the Unit Trust Funds Industry. We explore the validity of different benchmark specifications used to evaluate U.K. fund performance, and we examine the sensitivity of U.K. unit trust performance to the factor benchmark specification and two performance measures. Top Performing Daily. A fund house's fund name would reflect these. Unit Trusts are typically classified by geography, sector and type of assets held. The main types of Unit Trust Funds include; In line with Capital Market Regulations (2002) Part IV (32), Unit Trust Funds Managers released their Q2’2020 results. Invesco Unit Investment Trusts are distributed by the sponsor, Invesco Capital Markets, Inc. and broker dealers including Invesco Distributors, Inc. While initial deposit and additional investments may vary depending on the fund, Money Market Funds present a low risk, affordable and high-yielding investment opportunity for investors and capital preservation, a key feature of MMFs. Hass Consult also released the Q3’2020 House Price Index indicating that house prices increased by 0.3% over the quarter and 2.3% on an annual basis and the Q3’2020 Land Price Index which highlighted that land prices softened recording a 0.9% decline over the quarter in the Nairobi suburbs while satellite towns recorded a 0.1% drop. Compare this to the SPDR STI ETF performance, the SPDR STI ETF has returned 4.04% annually over the last 10 years. It is the unit trust fund managers who manage the trust in order to realize the greatest potential returns and profits. Coronation does not charge any initial or upfront fees to invest in our unit trust funds. Key to note, NBK was amalgamated into the group in Q4’2019 and as such, the groups Q3’2019 results were exclusive of NBKs customer deposits. PERSONAL; WEALTH; BUSINESS; CORPORATE; INSTITUTIONS; CLAIMS ; CAREERS; ABOUT; Old Mutual Unit Trusts Funds. Unit trusts offer an easy, convenient and affordable way to invest in shares and other asset classes. Kenya Region, was the best performing region in the retail market according to the Cytonn’s Kenya Real Estate Retail Sector Report 2019 with average yields of 8.6%, 1.6% points higher than the market average of 7.0%. Yields on interest-earning assets declined to 10.3% from 10.5% in Q3’2019 attributable to a faster 13.7% growth in average interest-earning assets, outpacing the 4.9% growth in trailing interest income. The improving current account position which has seen a 39.9% decline during Q2’2020, coming in at Kshs 82.2 bn, from Kshs 136.9 bn in Q2’2019, equivalent to 7.0% of GDP from the 10.9% of GDP recorded in Q2’2019. The performance persistence tests of the unit trusts is examined between January 1982 and December 1996. Equities turnover declined by 33.9% during the week to USD 19.0 mn, from USD 28.8 mn recorded the previous week, taking the YTD turnover to USD 1.3 bn. 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