“Is a pension fund's investment yield influenced by the size of the fund's assets?”

1 ABSTRACTThe question is occasionally asked whether the investment yield achieved on the assets of a pension fund in South Africa is liable to be influenced, adversely or otherwise, by the size of the fund's assets.Statistical tests conducted overseas have tended to suggest that there is no noticeable correlation between size and yield. Nevertheless it seemed that an investigation could with advantage be carried out on the basis of South African conditions, to establish whether any different result would emerge here.This paper sets out the results of such an investigation. They point to the same general conclusions as those arrived at overseas, but in the process certain pertinent questions arise.