October 2024 Market Wrap-up Report

Macroscopic Capital Flows & Domestic Liquidity

During October 2024, domestic Money Market Fund (MMF) yields entered a distinct contractionary path. The overall market-wide average daily effective rate declined to 14.21% p.a. compared to the 14.48% p.a. performance benchmark printed during the close of September. This compression is directly linked to structural drops in sovereign Treasury Bill (T-bill) returns, which act as the primary underlying asset class driving domestic liquidity portfolios.

Fixed Income & Money Markets (KES Performances)

Despite broader sector shifts, select top-tier institutions maintained high active daily distributions. The leading investment operations for October 2024 featured notable performances across the local currency landscape:

• Lofty Corban & Cytonn MMFs: Tied for the premier position, printing a competitive gross daily return of 16.64% p.a. (netting 14.15% after local withholding taxes).
• Etica Money Market Fund: Followed closely in the upper echelon with an effective daily rate of 15.95% p.a. (yielding 13.56% net of tax).
• Arvocap & Kuza MMFs: Maintained active distribution brackets at 15.78% p.a. and 15.73% p.a. respectively.

Dollar-Denominated Portfolio Performance (USD)

For conservative currency-diversified reserves, cross-border asset indices printed a separate cumulative benchmark average of 5.75% p.a. across domestic USD currency funds. Leading active structures include:

• Kuza MMF USD: Secured the highest position for the month with a gross yield of 6.79% p.a.
• Etica MMF USD: Captured the second spot by posting a stable asset distribution framework of 6.72% p.a.
• Dry Associates & Lofty Corban USD: Delivered audited tracking pools closing at 6.22% p.a. and 6.20% p.a. respectively.

Long-Term Fixed Income Distributions

For structures built beyond short-term operational capital, traditional Fixed Income allocations maintained higher structural yields to match longer maturity durations. The Kuza Fixed Income Fund outperformed peers at 14.96% p.a., followed closely by Madison at 14.70% p.a., and Etica Capital's fixed instrument wrapper at 14.62% p.a.