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Imarika Fund Performance-The Funds annualized year-to-date return stands at 13.70% p.a.

Britam Imarika Fund Commentary30 June 2019

Markets Review

  • Kenya’s GDP grew by 5.6% in the first 3 months of 2019, compared to 6.5% growth recorded in a similar period in 2018. Lower growth rate is as a result of subdued rainfall resulting in drought conditions in some areas of the country, and consequently, reduced output in the agriculture sector.
  • Annual inflation was recorded at 5.70% in June 2019, from 5.49% in May. The Food and Non-alcoholic drinks index declined by 1.60% in June while the transport index gained 0.26% in the month as a result of increase in fuel pump prices. Favorable weather has led to decline in some food items in June but generally food prices are higher than they were last year.
  • Short-term interest rates as indicated by the 91-Day, 182-Day and 364-Day Treasury bill rates declined in June. The 91-Day fell by 0.257% to close June 2019 at 6.738% from May’s close of 6.995%. The 182-Day rate declined by 0.164% to close at 7.487%, compared to 7.651% recorded as at close of June 2019, while the 364-Day dropped by 0.552% averaging 8.759% from May’s close of 9.311%.
  • Fixed Income market interest rates fell in June 2019, shedding an average of 0.2025%. The 2 year rate fell by 0.19% in the month to close at 9.65%. The 5 year rate fell to 10.45% from 10.66% in May while the 10 year rate fell by 0.29% to 11.75%. The 15 year rate fell by 0.20% to 12.42% while the 20 year rate shed 0.18% to close at 12.59%.
  • Equities market as shown by the Nairobi All Share Index (NASI) declined slightly in the month; the NSE All Share Index shed 0.31 points in June 2019 to close at 149.61 points. The NSE All Share Index is up 6.54% year-to-date. The NSE-20 index shed 43.6 points to close the month at 2,676.92 points. The NSE-20 index year-to-date return is

-7.08%.

Imarika Fund Performance

Return for the month was 1.06%. The Funds annualized year-to-date return stands at 13.70% p.a.

Outlook and Strategy

Our strategy is aimed at achieving performance that is sustainable in the long-term. We aim to achieve this by taking guided investment decisions. To preserve capital, manage risks and drive portfolio returns, we target a well-diversified and balanced asset allocation. With carefully selected and diversified securities, we can maximize risk-adjusted returns and ensure market beating returns.

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