Articles
Kenya Fixed Income Fund Performance Update – February 14, 2025
Latest Rankings: Top 10 Fixed Income Funds in Kenya
The latest update on Fixed Income Funds in Kenya shows little change in performance, with most funds maintaining their previous positions. Below is a look at the top-performing Fixed Income Funds based on Effective Annual Rate (EAR):
| # | Fixed Income Fund | Effective Annual Rate (%) |
|---|---|---|
| 1 | Gulfcap Fixed Income Fund | 15.55% |
| 2 | Hifadhi Fixed Income Fund | 14.80% |
| 3 | Kuza Fixed Income Fund | 14.78% |
| 4 | Etica Fixed Income Fund | 14.57% |
| 5 | Madison Fixed Income Fund | 14.20% |
| 6 | Zimele Fixed Income Fund | 13.87% |
| 7 | Nabo Africa Fixed Income Fund | 13.63% |
| 8 | Britam 12 Months Fixed Income Fund | 13.63% |
| 9 | Britam Bond Plus Fund | 13.58% |
| 10 | Britam 6 Months Fixed Income Fund | 13.44% |
Key Observations:
📌 Minimal Changes in Performance: The top 10 fixed income funds have seen only slight shifts in yields, with most funds maintaining stable returns. The average yield for the top 10 funds stands at 14.21%, showing resilience in the market.
📌 Fixed Income Funds vs. Money Market Funds:
Interestingly, the average yield of the top 10 Fixed Income Funds (14.21%) is now closely aligned with that of the top 10 Money Market Funds (14.89%) as of February 14. Typically, MMFs are known for their high liquidity and short-term investment nature, while Fixed Income Funds target medium to long-term debt instruments. The convergence in returns could indicate either:
✔️ A more competitive fixed income investment environment.
✔️ MMFs maintaining relatively strong returns in the current market conditions.
📌 Hifadhi Fixed Income Fund enters the top rankings: Hifadhi now holds the second position at 14.80%, overtaking Etica and Kuza, which had ranked higher in previous updates.
📌 Gulfcap Maintains Leadership: Gulfcap Fixed Income Fund continues to lead the pack at 15.55%, unchanged from the previous rankings.
💡 Investor Takeaway:
- Diversification is Key: With returns on Fixed Income Funds and MMFs showing similarities, investors should carefully evaluate their risk appetite and liquidity needs before choosing between the two.
- Stable Yields Indicate Market Consistency: The minimal shifts in performance suggest a steady fixed income environment, making these funds an attractive option for conservative investors.
🔗 Stay updated with more market insights by following us on LinkedIn.