Britam Imarika Fund April 2020 Commentary.

Imarika Fund Return for the month was 1.04% implying an annualized return of 13.41% p.a. Gross Domestic Product (GDP) is estimated to have grown by 5.4% in 2019 compared to a 6.3% growth in 2018. Agriculture, Forestry and Fishing sector accounted for a sizeable proportion of the slowdown, from 6.0% growth in 2018 to 3.6% in 2019.

Gross Domestic Product (GDP) is estimated to have grown by 5.4% in 2019 compared to a 6.3% growth in 2018. Agriculture, Forestry and Fishing sector accounted for a sizeable proportion of the slowdown, from 6.0% growth in 2018 to 3.6% in 2019.

Annual inflation was recorded at 5.62% in April 2020. This is based on a new Consumer Price Index (CPI) whose base period is February 2019. Inflation increased from 5.51% recorded in March 2020. The March 2020 inflation is a revised number from 6.06% earlier reported. The New Consumer Price Index (CPI) rose by 0.92 points month-on-month in April 2020 to close at 107.92 points. The rise in the CPI was majorly due to an increase in the Food and Non-alcoholic index which rose by 1.77% between March and April 2020 (11.58% year-on-year).

Short-term interest rates as indicated by the 91-Day, 182-Day and 364-Day Treasury bill rates showed mixed movement in the month. The 91-Day rate fell by 0.028 percentage points to close the month at 7.212%. The 182-Day gained 0.003 percentage points, closing the month at 8.121% while the 364-Day rate increased by 0.065 percentage points to close April 2020 at 9.110%, from 9.045% at the end March.

Fixed Income market interest rates declined in the month shedding 0.02 percentage points on average in April. The 2-year rate lost 0.06 percentage points to close at 10.35% while the 5-year rate closed April 2020 at 11.23%, from 11.26% at the end of March 2020. The 10-year rate shed 0.07 percentage points to close April at 12.19% while the 15 year rate gained 0.03 percentage points to close the month at 12.77%. At the long end of the curve, the 20-year rate declined to close the month at 13.08%, from 13.24% at the end of March 2020.

Equities recovered in the month. The Nairobi All-Share Index (NASI) gained 5.9% (-16.1% YTD) in April to close at 139.69 points from 131.92 points in March and the NSE-20 share index declined by 0.41% (-26.23% YTD) in April 2020 to close the month at 1,958.07 points, from 1,966.12 points in March 2020.

Imarika Fund Performance

Return for the month was 1.04% implying an annualized return of 13.41% p.a.

Outlook and Strategy

We adopt a strategy that is geared towards achieving return that is sustainable in the long-run. We achieve this by taking guided investment decisions. Through a well-diversified portfolio and balanced asset allocation, we are able to preserve capital, manage risks and drive portfolio returns. With carefully selected and diversified securities, we can maximize risk-adjusted returns and ensure market beating returns.