The Fund recorded a performance of-0.77% down from 1.9% in quarter two 2018, the decline was primarily driven by poor performance in the equity market which represent 13.0% of the total assets. In the same period the Fund recorded an 1.9% decrease in total asset under management in the third quarter of 2018 to close at Kshs. 19.04 billion from Kshs. 19.40 billion in quarter two 2018.
A summary of the asset growth and portfolio movement is shown below;
Kenya’s economic growth is expected to maintain the same momentum seen in the first half of 2018 given the low base effect of 2017. This should be primarily driven by strong performance in agriculture, tourism and manufacturing. Hence, the 2018/19 fiscal year could see government achieve its 6.2% growth target despite the low credit growth. Finally, food inflation is likely to remain contained due to the sufficient long rains in the March-May season that resulted in adequate crop yields. Private sector credit growth remains subdued and this may keep core inflation in check.