Unit trust investors brace for lean returns on low T-bill rates

Unit trust investors are bracing for a leaner 2016 compared to last year as returns on money market funds dipped further into the single-digit rate in the third quarter due to lower interest rates on government securities.

The average weighted return for money market funds in Kenya based on assets under management has dropped to 8.26 per cent from 9.1 per cent at the end of June and 13.1 per cent in January, calculations by Kestrel Capital show.