The Effect of Investment Management on Organization Financial Growth: A Case Study of Pension Schemes in Lusaka, Zambia

This study examined the effect of investment management on organizational financial growth among pension schemes in Lusaka, Zambia, focusing on asset value, revenue growth, and profitability growth. A descriptive research design was employed, involving 30 respondents selected through simple random sampling. Primary data were collected using a structured questionnaire and analyzed using Megastat. The results demonstrated significant asset growth, with 56.7% of respondents reporting growth above 20%, 23.3% reporting growth between 11% and 20%, and 20.0% reporting growth between 5% and 10%. Furthermore, all respondents agreed that investment risk management enhanced asset preservation, with 90% rating the influence of investment strategies on asset growth as high or very high. However, regression analysis indicated that total asset value and pension scheme type did not significantly predict perceptions of investment strategy impact on asset growth (r²=.066, F (2,27)=.96, p=0.3966). Regarding revenue growth, 76.7% reported investment income contributing more than 25% of total revenue, 93.4% rated investment decisions effective or very effective, and 93.3% reported increased investment revenue. A chi-square test confirmed a significant association between asset value and investment decision effectiveness (χ²(6)=18.48, p=0.0051). Profitability also improved, with 96.7% reporting increased net profitability, while all respondents agreed that investment management increased Return on Investment (ROI) and cost control enhanced profitability. ANOVA showed that pension scheme type significantly predicted ROI improvement (r²=0.208, F (1,28)=7.36, p=0.0113, b=-0.600). The study concluded that investment management positively contributes to revenue and profitability growth; the study recommends stronger diversification, risk management, performance monitoring, cost control, and strategic financial resource allocation.