The funding risk borne by sponsors of defined benefit pension funds and the residual risk borne by members of defined contribution pension funds have necessitated focus on the investment strategies employed by pension funds. Trustees, managers and regulators of occupational retirement benefits schemes are struggling to find ways of addressing these challenges, as investment strategies contribute to the retirement benefits of their members. There is therefore a need to gain a better understanding of the features, internal to the retirement benefits schemes, which influence their investment strategies. Using data from 206 occupational retirement benefits schemes in Kenya, this study sought to determine the influence of five schemes' internal features on investment strategies. The features are; fund value, average age of members, scheme design, risk tolerance, and strategic asset allocation to equity. The study employed explanatory research design and used templates to collect quantitative and qualitative data of the study variables from scheme administrators. The results of the study were validated using focus group discussions with industry experts. The study used correlation and regression analysis to test the relationship and the influence between the independent and the dependent variables. The study found a positive and strong association between the retirement benefits schemes size and investment in risky assets, while regression analysis confirmed that size influenced investment in risky assets. Large retirement benefits schemes in the study invested 22% of their total assets in risky assets, compared to 14% by small schemes.
NGUGI, W (2021). The Influence Of Internal Scheme Features On The Investment Strategies Of Occupational Retirement Benefits Schemes In Kenya. Afribary. Retrieved from https://track.afribary.com/works/the-influence-of-internal-scheme-features-on-the-investment-strategies-of-occupational-retirement-benefits-schemes-in-kenya
NGUGI, WILSON "The Influence Of Internal Scheme Features On The Investment Strategies Of Occupational Retirement Benefits Schemes In Kenya" Afribary. Afribary, 11 May. 2021, https://track.afribary.com/works/the-influence-of-internal-scheme-features-on-the-investment-strategies-of-occupational-retirement-benefits-schemes-in-kenya. Accessed 08 Oct. 2024.
NGUGI, WILSON . "The Influence Of Internal Scheme Features On The Investment Strategies Of Occupational Retirement Benefits Schemes In Kenya". Afribary, Afribary, 11 May. 2021. Web. 08 Oct. 2024. < https://track.afribary.com/works/the-influence-of-internal-scheme-features-on-the-investment-strategies-of-occupational-retirement-benefits-schemes-in-kenya >.
NGUGI, WILSON . "The Influence Of Internal Scheme Features On The Investment Strategies Of Occupational Retirement Benefits Schemes In Kenya" Afribary (2021). Accessed October 08, 2024. https://track.afribary.com/works/the-influence-of-internal-scheme-features-on-the-investment-strategies-of-occupational-retirement-benefits-schemes-in-kenya