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This study focused on the analysis of factors influencing pension fund managers investment decisions. The objectives 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. Three 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 summarized using descriptive statistics such as mean, standard deviation, frequencies, percentages. The study found out that returns, investment risks and trends in interest rates were the most important factors affecting pension managers investment decisions. Decision-making preferences, investment portfolio, past performance and legal framework were rated as less important. Consistency and return maximization in the rate of returns (sustainable long term returns), prevailing economic and political situations-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 pension 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 investing 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 RBA benchmarks with the world best in order to help the sector to achieve growth. The promotion of retirement funds and regulatory functions should be separated to avoid conflict of interest in the two roles.
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