This research report was prepared by the Research Department of Old Mutual Securities Limited. Old Mutual Securities Limited is a securities trading company licensed by the Capital Markets Authority (Kenya) for the purpose of facilitating trade on the Nairobi Securities Exchange.

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
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