Here are our views on the news making headlines today for Kenya:
Pension schemes benefit from large counters at NSE. Price gains by the large counters at the Nairobi Securities Exchange (NSE) have shielded pension schemes from a bearish stock market, rewarding them with an increase in the value of equity portfolios for the first quarter of the year.
Our View: According to the survey, the average equity return for all schemes over the year to March 2015 was 23.7% which was an increase compared to 18.7% at December 2014. The average fixed income performance posted a drop to 10.2 % as at March 2015 compared to 13.8% as at December 2014. Most pension funds have exposure on the large counters namely Safaricom, EABl and KCB whose shares prices have had a good rally this year and have a return of 20.84% ytd, 6.29%ytd and 6.14% ytd respectively against the NSE 20 -0.94% ytd, however this gains could be eroded in Q2 as we continue to witness low fixed income yields