Fund Size and Performance of Unit Trust Funds in Kenya
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Date
2021
Authors
Nthimba, Anderson Namu
Jagongo, Ambrose
Wamugo, Lucy
Journal Title
Journal ISSN
Volume Title
Publisher
Science Publishing Group
Abstract
When investors take part in any investment, the main objective is to increase their wealth. This is achieved when
share prices increase. The performance of unit trusts in Kenya has however been poor compared to the counterparts in the rest
of the world. The poor performance is a discouragement to individual and corporate investors in addition to affecting the
realisation of financial stability according to the Kenya vision 2030. Empirical literature from developed and emerging markets
posits that fund size explain the performance of unit trust funds. This study therefore investigated the effects of fund size on the
performance of unit trust funds in Kenya. The study adopted an explanatory research design and positivism philosophy. The
target population was 16 unit trust firms in Kenya as at the end of the year 2017. The study used a census approach. Secondary
data was collected from the audited financial statement of respective unit trusts for the period 2005 to 2017 using a data
collection schedule. The study established that fund size has significant positive effect on performance in all funds. The study
concluded that increase in fund size increases performance. The study recommends that capital market authority should
monitor performance of unit trusts constantly and in addition develop merger policies to encourage small unit trust to merge in
order to take advantage of economies of scale
Description
An Article Published in Journal of Finance and Accounting
Keywords
Fund Size, Unit Trust Funds, Performance, Unit Trust Funds Performance
Citation
Anderson Namu Nthimba, Ambrose Jagongo, Lucy Wamugo. Fund Size and Performance of Unit Trust Funds in Kenya. Journal of Finance and Accounting. Vol. 9, No. 1, 2021, pp. 8-15. doi: 10.11648/j.jfa.20210901.12