On Saturday 27th April 2019, Cytonn Investments held their Q1’2019 Market Outlook and company updates event at The Alma, Ruaka. The quarterly forums provide extensive insights into Cytonn’s outlook on the macroeconomic and operating environment as well as to update clients and investors on market performance and latest developments in their various investment products.
Caleb Mugendi, Assistant Head of Investments at Cytonn Asset Managers
While giving remarks on Q1’2019 economic review, Caleb Mugendi, Assistant Head of Investments at Cytonn Asset Managers, mentioned that Kenya’s economic growth was robust in 2018, growing at 6.3% and macroeconomic conditions remained positive in the first quarter of 2019. “Our outlook for Kenya’s macroeconomic environment is positive supported by expectations for strong economic growth at between 5.7%-5.9%, a stable currency, inflation rates within the government’s target, and stable interest rates in 2019. This conducive operating environment should support investments in the Equities market and Private Equity activity, where we have a positive outlook in both asset classes, owing to the attractive valuations,” said Caleb.
Key highlights regarding the progress of the various live Real Estate projects such as The Amara Ridge, which is 100% complete and The Alma, which is 90% sold also formed a major part of the event. From the outlook, real estate will continue to exhibit strong growth in 2019 driven by private sector investments and government plans to build 500,000 new homes in the next 5 years.
Sheila Nthenya, Risk and Compliance Analyst speaking at the event
Sheila Nthenya, Risk and Compliance analyst gave an overview of the company’s risk outlook. She noted, “As Risk and Compliance, we tirelessly work to continually identify and manage risks associated with our business areas, to better understand the risk-reward balance, reduce the risks to acceptable levels and maintain a system of risk management.”
Grace Weru, Chief Financial Officer at Cytonn Asset Managers addressing clients
Speaking at the event, Grace Weru, Chief Financial Officer at Cytonn Asset Managers, mentioned that apart from the traditional ‘smart’ way of investing in Real Estate which was through brick and mortar, investors can opt for the alternative structured products depending on the investors’ investment needs, risk/return profile, time horizon and liquidity needs.
Clients follow the event proceedings
Edwin H. Dande, Chief Executive Officer Cytonn Investments, while sharing the CEO remarks assured clients that the company remains focused on execution of its medium term strategy and would continue to be open and respond to any business concerns.
Clients and prospects present also got the opportunity to tour The Alma and the ready show houses to inspect the progress of the project. Early buyers in The Alma have achieved up to 55% capital appreciation.