In this study, the performance of the Rennies Provident Fund's management
strategy is reviewed. The study aims to determine whether the Fund's
management strategy created or destroyed shareholder value over the past 17-
year period of its existence up to and including the 2004 financial year.
First, the Rennies Provident Fund's performance is reviewed against its internally
set performance objective of returning CPI (consumer price index) + 3% to its
members. Secondly, the Fund's performance is compared to that of similar
pension funds. Thirdly, the performance objective that the Fund has set itself is
critiqued against the performance objectives of other pension funds. Finally, the
value-based performance measurement approach is applied to the fund to
determine whether shareholder value has been created or destroyed in absolute
money terms during the 2003 financial year.
This study finds that the Rennies Provident Fund has on average achieved the
required internally set benchmark of returning CPI + 3% over the 17-year period
of its existence. However, when the performance of the Fund is compared to
available data for similar funds over a 12-year period, this study finds that the
Rennies Provident Fund performed poorly. Further, this study also finds that in
absolute monetary terms, the Rennies Provident Fund destroyed shareholder
value over the 17-year review period. / Thesis (MBA)-University of KwaZulu-Natal, 2007.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ukzn/oai:http://researchspace.ukzn.ac.za:10413/1250 |
| Date | January 2007 |
| Contributors | Fouche, Sean. |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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