DETERMINANTS INFLUENCING PENSION FUND INVESTMENT PERFORMANCE IN KENYA

Authors

  • Anthony Kyanesa Mutula Jomo Kenyatta University of Agriculture and Technology
  • Dr. Assumptah Kagiri Jomo Kenyatta University of Agriculture and Technology

DOI:

https://doi.org/10.47941/ijf.227
Abstract views: 1115
PDF downloads: 623

Keywords:

determinants, pension fund investment, performance

Abstract

Purpose: The purpose of the study was to investigate the determinants influencing pension fund investment performance in Kenya.

Methodology: The study employed a descriptive research design. The study target population was all the 33 registered pension funds in Kenya, and the sample size was 66 senior employees involved in decision making. The study adopted a census approach and therefore data was collected from all the 33 registered pension funds. A questionnaire was used to collect primary data from the selected respondents. The data collected was analyzed using the statistical package for social sciences (SPSS) version 23.0. The software was used to produce frequencies, descriptive and inferential statistics which was used to derive generalizations and conclusions regarding the population. Multiple linear regression model was used to measure the relationship between the independent variables and the dependent variable. The study findings were presented using figures and tables.

Results: The study findings revealed a positive and significant relationship between diversification decisions, management competency, investment strategies, regulation compliance and investment performance of pension funds in Kenya.

Unique contribution to theory, practice and policy: The study recommended that the management of pension funds should establish a strong organization structure and policy implementation, which will enhance their portfolio composition; the firms should have highly competent management; should incorporate investment literacy and capability programs in their organizations; and should continue adhering to the set regulations.

Downloads

Download data is not yet available.

Author Biographies

Anthony Kyanesa Mutula, Jomo Kenyatta University of Agriculture and Technology

Post Graduate Student

Dr. Assumptah Kagiri, Jomo Kenyatta University of Agriculture and Technology

Lecturer

References

Alliance Global Investor (2007). Global Pension Fund Statistics. http://www.pensionfundsonline.co.iik/pdfs/countryoverview.pdf

Asher, M.G. (2008), ‘The financial crisis and its implications for pension funds in South-East Asia’, presentation’, presented at EDI/World Bank conference, Hangzhou, China, April 1998.

Bodie (2005). The growth in actively managed mutual funds. The Journal of Finance, 47(3)

Davis, E. (2010). Pension Funds, Financial Intermediation and the New Financial Landscape. The Pensions Institute, Discussion Paper No. P1-0010.

Eijffinger, S. & Shi, Z. (2007) EU Pension Fund Regulation: Why, Where and How to Continue. EU Pension Regulation

EBRI. (2007). Retirement Income Statistics. Employee Benefits Research Institute.

Kakwani, N., Sun, H. & Hinz, R. (2006). Old-Age Poverty and Social Pensions in Kenya, International Poverty Center.

Kamwaro, E.K. (2013). The Impact of Investment Portfolio Choice on Financial Performance of Investment Companies in Kenya, Unpublished MBA Thesis, University of Nairobi

Kigen, A. K. (2016). Effect of Fund Size on the financial performance of Pension Funds in Kenya (Doctoral dissertation, KCA University).

Kimeu, F. M. (2015). The Effect of Portfolio Composition on the Financial Performance of Investment Companies Listed In Nairobi Securities Exchange.

Muriuki, M. (2010). Factors Affecting SACCO Performance in Meru South District: A Case of Tharaka Nithi Teachers SACCO. Unpublished MBA Project, University of Nairobi.

Ngetich, C. (2012). Determinants of the growth of individual pension schemes in Kenya. Unpublished MBA Project, University of Nairobi.

Odundo, E. (2008) Supervision of Pensions. Kenyan Experience. Paper presented at Pension Supervision Workshop. Dakar. February 8.

Osano, B. O. (2013). The Effect of Investment Strategies on Financial Performance of Investment Funds in Kenya. Unpublished Thesis (University of Nairobi 2013)

Owino, S. A. (2015). The Effect of Management Competence, Competition and Working Environment on Performance of Public Service Vehicle SACCOS in Nairobi County (Doctoral dissertation, Doctoral Dissertation, University of Nairobi).

Yermo, J. (2008). Survey of Investment Regulation of Pension Funds. OECD Publishing.

RBA. (2009), Report on Retirees' and Pensioners' Survey

Scott, W.R (2004). Institutional Theory. In Encyclopedia of Social Theory, George Ritzer,ed. Thousand Oaks. CA. Sage Pp 408-14

Downloads

Published

2018-05-14

How to Cite

Mutula, A. K., & Kagiri, D. A. (2018). DETERMINANTS INFLUENCING PENSION FUND INVESTMENT PERFORMANCE IN KENYA. International Journal of Finance, 3(1), 14–36. https://doi.org/10.47941/ijf.227

Issue

Section

Articles