INFLUENCE OF PENSION FUND MANAGEMENT PRACTICES ON INVESTMENT PERFORMANCE OF INDIVIDUAL PENSION SCHEMES IN KENYA
Abstract
This study intended to investigate the influence of pension fund management practices on investment performance of individual pension schemes in Kenya. The study employed explanatory survey research design and targeted 108 respondents which comprised of fund managers/fund administrators, actuaries/ fund scheme advisors and auditors from 36 individual pension schemes in Kenya; from where a census method was used to select all the 108 respondents. Primary data was collected by means of self-administered structured questionnaires. Data collected from the field was coded, cleaned, tabulated and analyzed using both descriptive and inferential statistics with the aid of specialized Statistical Package for Social Sciences (SPSS) version 24 software. Both descriptive and inferential statistics showed that all the study’s independent variables (financing management practice, investment management practice, financial control practice, asset base management practice) significantly influence investment performance of individual pension schemes in Kenya. The study concluded that one; well implemented financing management practices such as prudent financing approaches, cost management tactics, capital administration significantly influence investment performance of individual pension schemes; two, asset base management practices significantly influence investment performance of individual pension schemes in Kenya; only if mean asset base and its investment yield are well intertwined. The study recommended that one, fund and administrative managers of individual pension schemes should have prudent financial control practices while factoring in administrative costs in pension schemes so as to guarantee their significant influence on investment performance; two, fund and administrative managers of individual pension schemes should ensure effective utilization of mean asset base and investment yields so as to realize their significant contribution to investment performance.
Key Words: Fund Management, Investment Management, Financial Control, Asset Base Management
CITATION: Odira, L. A., Miroga, J. & Otinga, H. N. (2020). Influence of pension fund management practices on investment performance of individual pension schemes in Kenya. The Strategic Journal of Business & Change Management, 7(2), 296 – 310.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i2.1630
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