FUND PARTICULARS FUND MANAGER’S COMMENTS The fund posted a performance of 1.79% against the 91 day benchmark return of 2.16%. Due to uncertainty on the fiscal side interest rates have been unpredictable over the last three quarters. At the end of the last quarter interest rates for the 91 day T-bill spiked to 10% but reversed at the beginning of the quarter to settle at about 8%. We anticipate that interest rates will ease further, given inflation is likely to remain contained. This is further supported by the governments’ indication to reduce domestic borrowing from KES190bn to KES102bn, hence easing pressure on the market Fund Manager: Barack Obatsa, CFA Fund Type: Kenya Money Fund Fund Start Date: 29 January 2003 Minimum Investment: KES 100,000 lump sum Initial Fee: None Annual Management Fee: Max 1% p.a. Income Distribution: Monthly Trustee & Custodian: CFC Stanbic Bank Kenya Limited Auditors: Ernst & Young Kenya TH RETURNS TO UNITHOLDERS (after all costs) AS AT 30 Average INVESTMENT AIM SEPTEMBER 2014 The primary objective of this Fund is to provide an attractive level of current income while preserving capital. The Fund may only invest in money market instruments with a maturity of less than thirteen months and the weighted average term of the portfolio may not exceed ninety days. Shilling Fund Bank Deposit Month 0.60% 0.55% Three Months 1.79% 1.65% 1 Year 7.04% 6.75% 3 Years 8.56% 7.06% INVESTMENT UNIVERSE 5 Years 7.53% 5.90% The Fund invests in high quality, short-term financing instruments and deposits providing investors with access to the wholesale money market, usually the exclusive preserve of the banking sector. This Fund is highly liquid, cost effective and safe, making it a superb alternative to bank deposits. Annualised Interest rate (KES) INVESTMENT PERFORMANCE AS AT 30TH SEPTEMBER 2014 The chart below shows the growth of KES 100,000 invested in the Shilling Fund vs. the growth of KES 100,000 invested in a typical bank deposit over various periods. 109,000 AA Kenya Shilling Fund Kenya Bank Deposit 108,000 The Fund aims to outperform regular fixed deposits and call accounts over time. WHO SHOULD INVEST? The Fund is suitable for conservative investors seeking an investment avenue for short-term savings. The time horizon for this Fund is typically less than for other unit trusts and is usually of a short to medium-term nature. 107,000 106,000 RISK PROFILE 105,000 This is a low risk fund. 104,000 Lower risk 103,000 102,000 Money Market, e.g. African Alliance Kenya Shilling Fund 101,000 100,000 1 Year 3 Years Income Higher risk RISK Fixed Income, e.g. African Alliance Kenya Fixed Income Fund Balanced, e.g. African Alliance Kenya Managed Fund OBJECTIVE Equity, e.g. African Alliance Kenya Equity Fund Capital Growth CONTACT DETAILS African Alliance Kenya Investment Bank Limited Fourth Floor, Kenya-Re Towers, off Ragati Road, Upper Hill, Nairobi PO Box 27639 Nairobi 00506 Telephone: +254 20 277 7000 Facsimile: +254 20 271 0247 Email: [email protected] Website: www.africanalliance.com REGULATORY CFC Stanbic Bank Kenya Limited is the Fund’s independent trustee and custodian. It is responsible for settlement, custodial services and monitoring compliance with the Fund’s trust deed and mandate. The Fund is the first registered and approved money unit trust fund with the Capital markets Authority and as such is subject to The Capital Markets (Collective Investment Schemes) Regulations 2001. Statutory disclosure and general terms and conditions: Unit trusts are generally medium to long term investments. The value of units may go down as well as up and past performance is no indication of future growth. All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. We endeavour to provide accurate and timely information but we make no representation or warranty, express or implied, with respect to the correctness, completeness of the information and opinions. We do not undertake to update, modify or amend the information on a accuracy or frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion is provided for information purposes only.