Statutory Disclaimer: The value of units may go down as well as up and past performance is not necessarily a guide to the

future. There are no guarantees on the clients capital as the

performance of units in the fund is determined by changes in the value of underlying investments hence value of your unit trust investment.
Economy: Data indicate that economic performance in Q3 2012 expanded
by 4.7% compared to 4.0% recorded in Q3 2011 primarily due to strong
performances of the Agriculture and Forestry, Fishing, Manufacturing,
Transport and Communication industries. Whilst the improved performance
specifically slowing inflation, stabilizing exchange rate and lower interest
rates stand to provide impetus for continued recovery in Q1 2013, we are of
the view that their still remains economic fragility in terms of the prospects of
higher global oil and food prices, worsening Euro zone crisis, volatile
exchange rate, widening current account deficit and political uncertainty. The
outcome of the forthcoming elections at this stage remains uncertain as
concerns arise over the process. In 2013, we are of the view that economic
growth will be influenced by a mix of both domestic & external factors. We
maintain our forecast of a 4.00%-4.50% full year GDP growth rate for 2012.
Interest Rates: Interest rates maintained the downward trend during the
period with exception of the 91 day T-bill. The 91 day T-bill improved to
8.138% from 8.093% as at September 2012. The 182 day T-bill declined to
8.100% from 9.888% as at September 2012. The Central bank continued to
remain active in the market sustaining its tight monetary policy stance with a
bid to contain inflation and stabilize the local currency. During the period
under review, the Central bank lowered the Central Bank Rate to 11%. We
expect interest rates to soften informed by improved liquidity conditions,
lower inflation expectations and sustained monetary policy easing.
Equity Market: The market maintained its steady equities price
appreciation for the ended quarter. Market participation was higher than Q3
2012 where the NSE 20 index grew by 4.05% for Q4 2012 while market
capitalization stood at 1,272.00 billion. Foreign investors contributed approxi-
mately over 50% of the NSE turnover during the quarter. Increased activity
was partly supported by lower money market yields which made equities
more attractive. Increased global risk aversion, modest local GDP growth
projections, political uncertainty and higher interest rates pose a risk to the
equity market. That said, going forward, we are of the view that lower
valuations, resilient corporate earnings and stronger fundamentals of listed
firms are likely to support vibrancy at the bourse.
Inflation: Inflation rate stood at 3.20% in December 2012 down from 5.35%
in September 2012 on the back of downward pressure emanated from Food
and Transport inflation. Favorable base effects and a stable exchange rate
also served to positively shape inflation. In the absence of any additional
shocks, we expect a further moderation in inflation in the coming months. A
stable exchange rate, lower food and fuel prices and prudent monetary
policy will aid to keep inflation in check. We expect inflation to remain in the
single digit levels for the first half of 2013.
Key Features
CIC ASSET MANAGEMENT LTD
CIC Balanced Fund
Fund Performance
FACT SHEET DECEMBER 2012
Who should invest?
Investors who:
Typically ready to invest over the medium to
long-term.
Hold large cash balances but need extra
returns at moderate risk.
Seek to benefit from a well-diversified port-
folio of market instruments.
Asset Allocation
Fund Manager: CIC Asset Management Ltd.
Launch Date: Jun-11
Risk Profile: Moderate
Trustee: Kenya Commercial Bank
Custodian: Co-op Custodial Services
Auditors: Deloitte & Touche
Registration Fee: Kshs 1,000.00
Minimum Investment: Kshs 10,000.00
Minimum Additional
Investment:
Kshs 2,000.00
Initial Fee: 4.50%
Annual Management Fee: 2.00%
Distribution: Quarterly
Fund Commentary
Top Holdings