Empirical investigation into the portfolio performance measures used by pension funds Managers and the challenges they face in portfolio management in Kenya

Abstract

The research involves an investigation into portfolio performance measures used by pension fund managers registered under Retirement Benefits Authority (RBA). It also sought information on the most prevalent challenges faced by these managers in portfolio management. The response is obtained using a questionnaire from the pension fund and investment managers of the registered fund managers in Kenya. The results show that most investment managers are aware of the portfolio performance measures yet only one of the nine respondents use the measures in pension fund portfolio management. The research also indicates that the biggest challenges faced by the pension fund managers are associated with measurement of risk of portfolio returns and finding a suitable benchmark with which to compare the funds performance.