| dc.description.abstract | Much of the previous research into the evaluation of asset allocation by fund managers and the
financial performance of unit trusts mechanism has concentrated generally on developed
countries. Not much known local study has focused on the evaluation of asset allocation by fund managers and the financial performance of unit trusts in Kenya. This study therefore sought to fill the existing research gap by carrying out a survey study on the evaluation of asset allocation by fund managers and the financial performance of unit trusts in Kenya. The main purpose of the study was to investigate into the evaluation of asset allocation by fund managers and the financial performance of unit trusts in Kenya.
This research was conducted through a survey study. The target population of this study was the unit trusts that consisted of equity-based funds and schemes that deal with stocks traded in Kenya. This restriction limited the number of funds available for evaluation, but provided a well focused comparison of funds that were popular among investors. This paper utilized secondary data. Data on financial performance of unit trusts including net asset value and dividend paid by unit trusts was collected from offices of respective unit trusts schemes. Data on estimate of dividend received on the market portfolio, and the 20 share index was collected from the Nairobi Stock Exchange. Data on market interest rates, interbank allocation rates and free rates was collected from the Central Bank of Kenya. The NSE 20 share index was used in estimating the performance of unit trust. Data on asset allocation will be collected from the annual reports for the period 2005-2009.
From the findings, the study established that for unit trusts available to Kenyan investors, asset
allocation can explain a significant amount of the difference in returns across time and hence a
primary determinant of return performance for these trusts. The study also found out that asset
allocation by fund managers and the financial performance of unit trusts in Kenya are better
resolved for performance to be effective in a very great extent. The study further established that
asset allocation by fund managers and the financial performance of unit trusts in Kenya is a
comprehensive important measurement and mitigation method used for various organizations
hence much important if effectively implemented and utilized. This study therefore recommends that in order to avoid many impediments, the unit trust managers should make sure that its strategies are sufficient to enable administration and management of credit with management prudence and giving them advice promptly. | en |
