| dc.description.abstract | This study sought to study relationship between trustee compensation and financial
performance of retirement benefit schemes in Kenya, over time, during a study period
of between 2011 through 2014. The board of trustees is the key decision makers
pertaining to investment benefit scheme fund. They make investment decisions and
invest the schemes funds in an array of investment vehicles ranging from property,
government securities, quoted shares, unquoted shares, corporate bonds, offshore
investments, guaranteed funds among many others and declare income rate at the
close of specific period, usually per annum. The study adopted a descriptive survey
research design with a sample size of 89 retirement benefit schemes, data secondary
in nature, was drawn from the RBA. Systems analysis involved averaging returns and
fund value across the 5 years for each schemes’ fund and calculating the average rate
of return by dividing the results respectively. The study conducted inferential analysis
using pearson correlation coefficient, ANOVA and regression analysis. ANOVA was
used to test the hypothesis of the means among independent (trustee compensation)
and dependent variables (financial performance). Correlation coefficient was used to
test the relationship and the strength of association between the variables and
regression analysis (coefficient of determination) was used to measure how well the
regression line represents the data. The study found evidence of a positive relationship
between trustee compensation and financial performance of retirement benefit
schemes in Kenya in that as the value of trustee compensation increases, financial
performance increases as well. However this study propose further studies on this area
especially for the schemes that hop trustees; also suggest including the cost factor in
the analysis. Also look at other factors that affect returns and not only the excess
market return, the size factor and the book to market factor. Future studies should be
conducted to assess effectives of investment undertaken by the pension schemes and
if such investments have positive impact on the financial status of the members of the
scheme. | en_US |
