REGAL REPORT WEALTH NEWS
14 TH ISSUE: 2ND REPORT 2017
Let’s help you start your wealth journey today!!!
When you think, "I need to organize my finances", you're probably just referring to updating your budget and arranging your bills. However, you can take this a step further by organizing your financial, insurance and tax records, as well as other documents related to your financial security, such as wills and property deeds. Organizing these financial records will help you protect your security and that of your family. Let us help you create the ultimate financial journey to help sustain your family for generations to come.
CONTACT US TODAY!!! LET US BEGIN YOUR FINANCIAL JOURNEY TOGETHER Regal Africa Group 4th Floor Top Plaza, Kindaruma Rd, Nairobi, Kenya P.O. Box 40187, Nairobi 00100 Tel: +254 0714 009 065 www.regalafrica.co.ke info@regalafrica.co.ke
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Word from the C.E.O Money Market Analysis Equity Market Analysis Bond Market Analysis Balanced Funds Analysis Fixed Income Analysis
Report Created BY: D.Gaitha Creative Studio www.dgaitha.com
WORDS FROM C.E.O Regal Africa would like to introduce you to the best short term investment solution. We recommend that our clients should set up a money market fund, so as to start saving for a rainy day. This savings funds should typically cover 3-6 months of your monthly expenses, which will be a good cushion to have just incase something happens to you or your loved ones. A money market fund is probably one of the best places to keep your emergency fund, not only are your funds liquid (you can withdraw and get the funds in your bank account in 2-4 days depending on the fund manager) The money market funds are also not accessible through an ATM like a savings account, therefore the chances of using the funds for impulse buying is reduced. The best thing about the money market fund, is that even though it is liquid, it gives you a much higher return that regular savings accounts and is more flexible and most likely has better interest than a fixed income account at your bank. Another benefit, is that you do not have to pay back interest if you plan to withdraw your funds unlike in the case of a Sacco. Money market funds are suitable for customers whose investment horizon is short term (1-12 months) or if you are a very conservative investor and you would like to have your funds in an investment vehicle that guarantees that you do not lose your principal investment. BENEFITS Security: The Money Market fund has capital guarantee and the funds are held in custody by a licensed custodian bank and are thus separated from the fund manager who manages the investments. Efficiency: Quick and easy access to funds when needed. Interest: Interest is compounded and is calculated on a daily basis and statements sent to you monthly. Flexibility: The period to invest is not fixed or contractual. Top ups: Investor can top up anytime as they wish and we recommend 10% contribution monthly if you are a salaried employee and for those who are self employed, we recommend you to invest at least 10% of your compensation. Professional managed: The professional money managers are able to negotiate better terms than you and they are then able to transfer the better returns to the unit holders of the money market fund. Performance: Historically the money market funds have performed better than banks short term savings offerings. Once you are ready to start investing, you can speak to one of our Personal Finance Advisors and we will guide you on the process to start investing. We look forward to guiding you on your wealth journey. Warm Regards
Wambui Gaitha
Founder and CEO of Regal Africa
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Q2 2017 MONEY MARKET ANALYSIS The money market remained relatively stable during the quarter with the only concern to investors being the level of inflation which continued to inch upwards to close the quarter at () compared to 10.28% as at the end of Q1’17. Treasury bill yields continued to inch downwards gradually as increased liquidity in the money markets continued to push interest rates downwards. The Central Bank of Kenya also maintained its low interest rate stance by maintaining the CBR at 10% despite inflation maintaining above the Central Bank target, noting that increasing the rate would pose a risk to economic growth. The yield on the 91, 182 and 364 day T-bills declined to 8.310%, 10.314% and 10.868% from 8.719%, 10.525% and 10.914% as the end of Q1’2017 respectively.
Money Market Funds’ Return in Q2 2017 The graph below shows money market funds return for the 5 best performing funds in Q2’2017
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Money Market Funds Return for the past 6 months. The graph below shows money market funds return for the 5 best performing funds in the past 6 months.
Money Market Funds Return for the past 12 months. The graph below shows money market funds return for the 5 best performing funds in the past 12 months.
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Based on the analysis on money market annual average returns, the top 5 funds which offer the best return has remained unchanged over the review period indicating that they offer consistently good returns based on the market conditions.
Money Market Outlook for Q3’ 2017 From the CBK’s actions, short-term interest rates are expected to remain within their current level with some little room to ease further despite inflation remaining a serious concern. We urge investors to invest their cash holdings through money market funds as they are expected to offer the best possible return for any cash investments when compared to other stand-alone cash investments.
Q2 2017 EQUITY MARKET ANALYSIS The equities market reversed the negative trend observed in the first quarter of the year to close the second quarter in the positive region. The NSE 20 Share and All Share Index were up by 15.9% and 17.2% respectively during the quarter. On a year-to-date basis, the NSE 20 and All Share Index were up 13.2% and 14.7% respectively as renewed interest by local institutional investors pushed up share prices. Turnover was up by 21% when compared to Q1’2017 to close at USD 433.3m. However, foreign investors turned net sellers with USD 21.62m worth of outflows compared to USD 16.67m of net inflows in Q1’2017.
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ISSUE. 2 QUATER REPORT 2017
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The table below shows the 10 best performing stocks at the NSE in Q2’2017;
Standard Group Ltd Crown Paints Kenya Ltd Sasini Ltd KenGen Co. Ltd Diamond Trust Bank Kenya Ltd KCB Group Ltd E.A.Portland Cement Co. Ltd NIC Bank Ltd The Co-opera�ve Bank of Kenya Ltd
30/06/2017 39.25 72.50 26.50 7.95 160.00 37.75 30.75 33.50 16.95
31/12/2016 16.50 42.50 19.20 5.80 118.00 28.75 23.50 26.00 13.20
Q2’2017 Return 137.88% 70.59% 38.02% 37.07% 35.59% 31.30% 30.85% 28.85% 28.41%
The table below shows the 10 best performing stocks at the NSE in Q2’2017;
Liberty Kenya Holdings Ltd Kenya Airways Ltd Mumias Sugar Co. Ltd ARM Cement Plc Home Afrika Ltd Nairobi Business Ventures Ltd Car & General (K) Ltd Housing Finance Group Ltd Deacons (East Africa) Plc Uchumi Supermarket Ltd
30/06/2017 11.40 5.05 1.10 20.50 0.95 6.20 21.00 10.45 3.60 2.15
31/12/2017 13.15 5.85 1.30 25.50 1.20 7.90 27.00 14.00 6.05 3.95
Q2’2017 Return -13.31% -13.68% -15.38% -19.61% -20.83% -21.52% -22.22% -25.36% -40.50% -45.57%
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ISSUE. 2 QUATER REPORT 2017
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EQUITIES FUNDS ANALYSIS Q2’2017 The graph below shows the return of the 5 best performing equity funds in Q2’2017
EQUITIES FUND 6 MONTHS ANALYSIS The graph below shows equities funds return for 5 of the best performing funds in the past 6 months.
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ISSUE. 2 QUATER REPORT 2017
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EQUITIES FUNDS 12 MONTHS ANALYSIS The graph below shows equities funds return for 5 of the best performing funds in the past 12 months.
The equity funds of Apollo , CBA Capital, Nabo Africa and Amana Capital are the most consistent in terms of performance over the review period. Apollo’s equity fund outperforms the other funds by a huge margin due to the fact that it was launched in 2016 when the market was in a bear and an uptick in share prices in 2017 has seen it greatly benefit.
Stock Market Q3’2017 Outlook We expect to see reduced momentum in the stock market in Q3’2017 due to the August General elections as investors wait on the outcome. Investors with a long time horizon have an opportunity to increase their investment in shares as the market still remains discounted and indications show that we may be out of the TH previous two year bear run.
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ISSUE. 2 QUATER REPORT 2017
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Q2’2017 BOND MARKET ANALYSIS Secondary bond market reduced slightly by 9.9% year-to-date following renewed sentiment in the stock market with turnover standing KES 236.9bn from 262.8bn. Yields as indicated by the yield curve have been on a downward trend as the CBK actions and increased liquidity levels pushed interest rates down. The FTSE Government Bond index which tracks the performance of government bonds listed at the Nairobi Securities Exchange was up by 3.2% year-to-date.
The graph below shows bond funds return for the past 3 months.
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ISSUE. 2 QUATER REPORT 2017
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BOND FUND 6 MONTH ANALYSIS The graph below shows bond funds return for the past 6 months.
BOND FUND 12 MONTH ANALYSIS The graph below shows bond funds return for the past 12 months.
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Bond funds over the review period have been under pressure as only two funds have sustained a positive return to their clients over the 12 months period.
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Q2 2017 BALANCED FUNDS ANALYSIS The graph below shows balanced funds return for 5 of the best performing funds in Q2’2017
BALANCED FUND 6 MONTH ANALYSIS The graph below shows balanced funds return for 5 of the best performing funds in the past 6 months.
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BALANCED FUND 12 MONTH ANALYSIS The graph below shows balanced funds return for the past 12 months.
Balanced funds over the period have relatively outperformed other specific asset class funds. Funds belonging to Apollo, Nabo Africa, Sanlam and Zimele have been rewarding their clients with the best returns when compared to the other balanced funds available to investors.
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Q2’2017 FIXED INCOME FUNDS ANALYSIS FIXED INCOME FUND Q2’2017 ANALYSIS The graph below shows fixed income funds return for Q2’2017.
Regal Africa is proud to partner with Sanlam in order to make your Financial lives better
TRUST
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EMPOWERMENT
regal africa Creating Wealth REGAL REPORT 14
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EXPAND YOUR INVESTMENT PORTFOLIO Are you looking to invest Part of your income this year or do you have a lump-sum saved up to start investing ? Regal Africa would like to work with you to acheive your goals. We will facilitate the best investment vehicle that is specific to your needs, having factored in the investment amount, risk tolerance and time horizon. We provide an array of investments options and each of them is concluded upon evaluation of the three mentioned factors. Investments are a means to help you secure a better future, so start investing wisely TODAY.
CONTACT US TODAY!! LET US GET YOU STARTED... Tel: +254 0714 009 065 www.regalafrica.co.ke info@regalafrica.co.ke AGRIBUSINESS
REAL ESTATE
STOCK MARKET Regal Africa Group 4th Floor Top Plaza, Kindaruma Rd, Nairobi, Kenya
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P.O. Box 40187, Nairobi 00100
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coming soon ... regal africa online academy
regal africa ONLINE ACADEMY
“Equip yourself with financial knowledge that will enrich you and your family”
Regal Africa is proud to partner with Green Pot Enterprises
Let’s build wealth and safeguard the enviroment through Agribusiness ...
regal africa Creating Wealth
INVEST IN YOUR EMPLOYEES FINANCIAL HEALTH.
FINANCIAL WELLNESS PROGRAM FOR YOUR EMPLOYEES We offer financial wellness programs to corporates as part of their employees benefits program (Regal@work). This group presentation ensures that all your employees have the basic financial knowledge to make the best financial decisions and have a positive effect on the company and its bottom line. We also offer group events i.e. workshops and seminars to individuals, entrepreneurs and professionals.
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ARE YOU IN A CHAMA AND WOULD LIKE TO GROW INTO AN INVESTMENT GROUP?
Regal Africa presents to you “The Regal Chama ” that offers an array of Investment Opportunities for your Investment Group. Investment Options: Professionally managed investments Real Estate Agribusiness Talk to us today and find out how we can make your chama the next BIG THING #RegalChama. Regal Africa Financial Services Ltd. 4th Floor Top Plaza, Kindaruma Rd, Nairobi, Kenya P.O. Box 40187, Nairobi 00100 Tel: +254 0714 009 065 www.regalafrica.co.ke info@regalafrica.co.ke
regal africa FINANCIAL SERVICES
introducing regal law
We would like to introduce to practicing lawyers �RegalLaw� the financial advisory service for lawyers. We will discuss about our Treasury Management service for funds entrusted to your law firm and our Corporate Wealth Planning services covering your business and personal financial plans.
Regal Africa Group 4th Floor Top Plaza, Kindaruma Rd, Nairobi, Kenya P.O. Box 40187, Nairobi 00100 Tel: +254 0714 009 065
www.regalafrica.co.ke info@regalafrica.co.ke
regal africa pg 19 W E A LT H M A N A G E M E N T
WE ARE THE BEST IN CUSTOMIZING A WEALTH MANAGEMENT PLAN TAILORED FOR YOU
Regal Africa Wealth Management provides financial planning , wealth advice to individuals, families, family offices and businesses. We offer a high touch, high quality and customized service. We believe that finding the right wealth adviser is critical to attaining your lifetime financial plan. Our aim is to help our clients to make the right financial decisions to attain their financial and investment goals as we assist them to plan, grow and manage their wealth.
Regal Africa Group 4th Floor Top Plaza, Kindaruma Rd, Nairobi, Kenya P.O. Box 40187, Nairobi 00100 Tel: +254 0714 009 065
www.regalafrica.co.ke info@regalafrica.co.ke
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what is your plan to build your business? contact us today !!
BiasharaPlan goal is to help SME’s to access finances, this will ensure growth and sustainability of the business venture. SME’s should Plan, Manage, Analyzes their businesses for success. We work with highly scalable businesses to plan for and achieve growth. This always requires a customized approach – we tailor our work based on individual business requirements in order to achieve the best results in the most cost effective way. Practically speaking, we help businesses identify, answer and solve difficult questions and engage for the long-term, helping to implement solutions. Business Advisory Services Accounting Outsourcing Employee Financial Benefits Programs BiasharaList Platform Regal Africa Group 4th Floor Top Plaza, Kindaruma Rd, Nairobi, Kenya P.O. Box 40187, Nairobi 00100 Tel: +254 0714 009 065
www.regalafrica.co.ke info@regalafrica.co.ke
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WELCOME TO THE BESPOKE REAL ESTATE SERVICE EXPERIENCE
Gami Global Properties is part of the Gami Global Investments Limited Group and is a company that offers Real Estate services in East Africa from its head office in Nairobi, Kenya. We focus on finding great opportunities in the Real Estate industry and we have demonstrated experience in advising clients on real estate opportunities, which requires practical experience and an intimate knowledge of what works in East Africa
Address: 4th Floor Top Plaza, Kindaruma Road P.O. Box 40187 -00100, Nairobi, Kenya Phone: +254 0795 502 877 Email: info@gamiglobal.com www.gamiglobal.com
GAMI GLOBAL pg 22 PROPERTIES
OUR TRANSACTION ADVISORY SERVICES ARE UNMATCHED
Regal Africa Advisory is a corporate finance boutique firm that offers transaction advisory services in East Africa. We are an independent firm with a network of investors, lending institutions and other partners, which helps us provide the most optimal cost of capital for our clients. We ensure that our financial recommendations are based on the best options in the market. We are an independent and globally connected advisory firm , we are able to provide comprehensive strategic and advisory solutions to our clients. Our ability to deliver the best solutions is based on our highly experienced team and our global networks and partners. We specialize in bespoke creative approaches to clients needs as each project assignment is unique. Our approach is solutions focused and a customer centric way of doing business. Mergers & Acquisitions Capital Raising Corporate Restructuring
Regal Africa Group 4th Floor Top Plaza, Kindaruma Rd, Nairobi, Kenya P.O. Box 40187, Nairobi 00100 Tel: +254 0714 009 065
www.regalafrica.co.ke info@regalafrica.co.ke
regal africa ADVISORY
OUR MANAGEMENT CONSULTING APPROACH IS SOLUTION FOCUSED.
We work with highly scalable businesses to plan for and achieve growth. This always requires a customized approach – we tailor our work based on individual business requirements in order to achieve the best results in the most cost effective way. Practically speaking, we help businesses identify, answer and solve difficult questions and engage for the long-term, helping to implement solutions. Company Strategy & Innovation Company Restructuring Business Succession Planning Executive Training
Regal Africa Group 4th Floor Top Plaza, Kindaruma Rd, Nairobi, Kenya P.O. Box 40187, Nairobi 00100 Tel: +254 0714 009 065
www.regalafrica.co.ke info@regalafrica.co.ke
regal africa C O N S U LT I N G G R O U P
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Disclaimer: The views expressed in this publication, are those of the writers where particulars are not warranted - as the facts may change from time to time . The information and numbers stated and analyzed , are received from public information found in the daily newspapers. This publication is meant for general information only , and is not a warranty , representation or solicitation for any product that may be on offer. Readers are thereby advised in all circumstances , to seek the advice of an independent financial advisor or contact the Regal Africa team to advise them on the suitability of any financial product for their investment purposes.
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WE CARE . . . WE UNDERSTAND . . . WE ARE HERE TO GUIDE YOU . . .
regal africa Creating Wealth
Regal Africa Group 4th Floor Top Plaza, Kindaruma Rd, Nairobi, Kenya P.O. Box 40187, Nairobi 00100 Tel: +254 0714 009 065 www.regalafrica.co.ke info@regalafrica.co.ke