During the second quarter of 2020, the DB Fund recorded a return of 2.01%, compared to the overall benchmark and industry weighted average performance of 2.19% and 3.6% respectively. The increase in performance from Quarter 1 2020 to Quarter 2 2020 was attributed to the slight recovery in the equity market. At the end of the quarter, the assets under management stood at KShs. 18.54 Billion up from KShs. 18.45 Billion in March 2020.

Outlook

The Kenyan economic growth is expected to remain subdued due to the shattered investors’ confidence and heightened measures taken against Covid-19. The World Bank and the International Monetary Fund have projected a growth of less than 1% owing to adverse impact on horticulture, construction, tourism and manufacturing sectors. At the global level, the economy is expected to contract sharply by –3 percent in 2020, much worse than what was experienced in the 2008–09 financial crisis. However, should the Covid-19 pandemic fade in the second half of the financial year and imposed containment efforts gradually unwound, the global economy could expand by 5.8 percent as economic activity normalizes.