Abstract: This study sought to examine the effect of retirement funds characteristics on the financial performance of pension schemes in Kenya. Specifically, the study sought to establish the relationship between asset allocation, fund size, fund design plans and the social coverage span. The relationship was proposed to be moderated by the retirement benefits act regulations. This study used a descriptive study design. The population comprised of all the 1342 registered pension schemes and a census was conducted to select schemes that have been consisted for the last ten years. 45 schemes were selected which had consistent data for the past 10years. Secondary data used which was sourced from the Retirement Benefit Authority and the company’s websites and the results presented using SPSS version 24. The study findings were presented in tables for easy interpretation. The results showed that asset allocation, fund size, and fund design plans had a positive impact on the performance of the pension schemes. However, social coverage span had a non-significant effect on the performance of pension scheme. The results also showed regulations had a significant moderation effect on the relationship between asset allocation, fund size, and fund design plans and performance of pension schemes. However, it had a negative effect on relationship between social coverage span and performance of pension schemes. The study recommended pension schemes should efficiently invest their assets, adopt the use of defined contributory plans, and increase the value of their funds as a way of increasing their returns.
Keywords: Asset Allocation, Fund Size, Fund Design Plans, Social Coverage Span, Regulations and Performance.
Title: RETIREMENT FUND CHARACTERISTICS AND PERFORMANCE OF SELECTED PENSION SCHEMES IN KENYA
Author: Nelly Winny Nyanchama Ondieki, John Mungai, Joseph Theuri
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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