Abstract:
his study focused on the analysis of factors influencing pension fund managers
’
investment
decisions. The objectiv
es of the study were to identify investment options available to pension
fund managers, identify factors that are considered by fund managers when making investment
decisions and identify challenges faced by fund managers in making investment decisions. Th
ree
representatives from each of the twelve registered fund managers completed the study
questionnaire. The questionnaire was administered through the drop and pick later method
.
Data
was analyzed using SPSS (Statistical Package
for
Social Sciences) and su
mmarized using
descriptive statistics such as mean, stan
dard deviation, frequencies
, percentages
.
The s
tudy found
out that
returns, investment risks and trends in interest rates were the most important factors
affect
ing
pension
managers’
investment decisio
ns
.
Decision
-
making
preferences, investment
portfolio, past performance and legal framework
were rated as less important
.
C
onsistency and
return maximization in the rate of returns (sustainable long term returns), prevailing economic
and political situatio
ns
-
inflation, global markets which determines key indicators like interest
rates/ exchange and risk profile of the scheme investment (risk assessment of the board of trustees)
in that order are
also
important
qualitative
factors in decision making for pens
ion fund
investment. The research also found out that few investment avenues/ vehicles, bureaucracy
in
consultations with trustees and unpredictable/ turbulent
and dynamic
market situations in that
order are the major challenges facing fund managers invest
ing pension funds. The researcher
identified a
need for a portfolio that will give higher returns. There is also need to
harmonize
all
regulations relating to pensions in order to create efficiency and avoid confusion.
The research
also recommends
that
RB
A benchmark
s
with the world best in order to help the sector to achieve
growth.
The
promo
tion of retirement funds and
regulat
ory functions should be separated to avoid
conflict of interest in the two roles
.
