The Determinants of Performance of Unit Trusts in Kenya
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Date
2011-10Author
Kasanga, Julius M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This study aimed at identifying and evaluating the determinants of performance of unit
trusts in Kenya. Unit trusts mean any scheme or arrangements in the nature of a trust in
pursuance where members of the public are invited to acquire an interest or undivided
share (units of investment) in groups of specified securities and to participate
proportionately in the income or profit.
The study focused on registered unit trusts categorized as money market funds and equity
funds as at 31st December 2010 mainly due to fact that this were the predominant
category of funds representing the extreme ends of the investment spectrum.
In the analysis and evaluation of the determinants of performance, forecasting ability and
market timing and security selection ability of the fund managers as determinants of
performance of the equity and money market sub-categories of funds was analyzed using
the Jensen Alpha modified model.
The findings of the study shows that forecasting ability, market timing ability as well as
security selection techniques were critical determinants of performance for unit trusts.
The equity fund managers possessed both forecasting ability and security selection ability
however, they lacked market timing ability. Money market fund managers lacked
forecasting ability, security selection ability as well as market timing ability despite the
factors having key influence on their performance.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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