“Investment Guideline Practices on Performance of Pensions Schemes in Ghana”

Abstract

The performance of pension schemes around the globe is anchored around the investment guidelines used by trustee firms and 
agencies in the pension industry. In Ghana, investment guidelines and governance also play a significant role in the performance of pension schemes. However, while investment guidelines and governances have been postulated to increase the performance of pension schemes, their impact on performance needs to be thoroughly examined from a research point of view to ascertain their direct and actual benefits and ways to improve their performance. The research employed quantitative design to analyze research questions and hypotheses to assess relationships, analyze differences, and explain the cause-and-effect relationships between variables. The research found that Pension Schemes administered by Corporate Trustees comply very well with investment guidelines and governances. The study on the performance of pension schemes showed that pension fund assets value had high performance in the four dimensions, and the Sharpe Ratio had high performance. Moreover, return on assets showed High Performance, and Return on Investment showed High Performance. The overall performance of the pension scheme was high. Again, there was a moderately positive relationship between investment guidelines practice and the performance of pension schemes, and there was a small positive relationship between investment governance and the performance of pension schemes. Lastly, investment guidelines adherence predicts the performance of Pension Schemes administered by Corporate Trustees.