Economies of scale and scope in Australian superannuation (pension) funds

Helen Higgs; Andrew C Worthington

doi:10.1057/pm.2012.29

ECONOMIES OF SCALE AND MERGER EFFICIENCIES IN THE CHILEAN PENSION FUNDS MARKET

Journal of Competition Law & Economics ◽

10.1093/joclec/nht021 ◽

2013 ◽

Vol 10 (1) ◽

pp. 137-159

Author(s):

C. Agostini ◽

E. Saavedra ◽

M. Willington

Keyword(s):

Economies Of Scale ◽

Pension Funds

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Operating costs of pension funds: the impact of scale, governance, and plan design

Journal of Pension Economics and Finance ◽

10.1017/s1474747207002995 ◽

2007 ◽

Vol 8 (1) ◽

pp. 63-89 ◽

Cited By ~ 66

Author(s):

JACOB A. BIKKER ◽

JAN DE DREU

Keyword(s):

Economies Of Scale ◽

Pension Plan ◽

Pension Funds ◽

Operating Costs ◽

Defined Benefit ◽

Defined Contribution ◽

Defined Benefit Plans ◽

Plan Design ◽

Using Data ◽

The Impact

AbstractAdministrative and investment costs per participant appear to vary widely across pension funds. These costs are important because they reduce the rate of return on the investments of pension funds and consequently raise the cost of retirement security. This article examines the impact of determinants of these costs, such as the size, governance, pension plan design and outsourcing decisions, using data on all Dutch pension funds across the 1992–2004 period, including more than 10,000 observations. We find that economies of scale dominate the strong dispersion in both administrative and investment costs across pension funds. Industry-wide pension funds are significantly more efficient than company funds and other funds. The operating costs of pension funds' defined contribution plans are lower than those of defined benefit plans. Higher shares of pensioners make funds more costly, whereas the reverse is true when relatively many participants are inactive.

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Pension Funds: Administrative and Investment Cost

SHS Web of Conferences ◽

10.1051/shsconf/202111502006 ◽

2021 ◽

Vol 115 ◽

pp. 02006

Author(s):

Jan Pokorný ◽

Pavlína Hejduková

Keyword(s):

Economies Of Scale ◽

Pension Fund ◽

Empirical Studies ◽

Pension Funds ◽

Literary Research ◽

Investment Cost ◽

Analysis And Synthesis ◽

Main Determinants ◽

Definition Of ◽

High Share

The pension funds show us the alternative to the unfunded systems. This is the reason for long-terming attention. Disadvantages of funds financing include problems as indexation, inflation, or administrative and investment costs, which are decreasing the future profit for pensionary and efficiency of pension funds. This study aims to describe and analyse the administrative and investment costs and the determinants that affect these costs. The method of literary research and search of professional studies focused on empirical analysis of administrative and investment costs is used. Furthermore, the method of analysis and synthesis is used. The result of this study is an indication of the content and significance of costs and the definition of the main determinants influencing these costs. A prerequisite for the quality functioning of pension funds is the organization of the labor market and a high share of active participants. Determinants that increase costs include the number of participants in pension funds and total assets, the guarantee of income by the pension fund, and some investment instruments. Based on a search of empirical studies, the existence of economies of scale was confirmed. The limit of the study is the comparison of several countries where different legislation operates.

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FACTORS OF THE EFFICIENCY OF MANAGING PORTFOLIO PENSION RESERVES OF NON-STATE PENSION FUNDS

Scientific Bulletin: finance, banking, investment. ◽

10.37279/2312-5330-2020-3-22-30 ◽

2021 ◽

pp. 22-30

Author(s):

Natalya Vladimirovna Ogorelkova ◽

Irina Mikhaylovna Reutova

Keyword(s):

Economies Of Scale ◽

Statistical Data ◽

Investment Strategy ◽

Pension Funds ◽

Econometric Models ◽

Factors Influencing ◽

Insured Person ◽

Investment Portfolios ◽

State Pension ◽

State Pension Funds

The article is devoted to the consideration of approaches and assessment of the efficiency of management of investment portfolios of non-state pension funds. This article is a logical continuation of the previously conducted research on assessing the effectiveness of pension savings management and contains an analysis of the effectiveness of the second component of investment portfolios of non-state pension funds (NPF) — pension reserves. The article examines the factors influencing the efficiency of managing the portfolios of pension reserves of non-state pension funds on the basis of statistical data on 28 NPFs for 2013–2018. The factors chosen were the volumes and growth rates of the funds attracted from pension reserves, the share of pension reserves in the economies of scale of non-state pension funds, the presence of risk strategies (the share of shares and investment units), and the amount of remuneration of management companies. The aim of the study is to assess the influence of the selected factors on the efficiency of managing the portfolio of pension reserves of NPFs based on the construction of econometric models. The construction of one-factor and multi-factor econometric models confirms the absence of dependence of the effectiveness of portfolios of pension reserves of APFs, determined by the Sharpe ratio, on the size of attracted pension reserves per one insured person; from the share occupied by NPFs in the non-state pension market, as well as from remuneration to management companies paid by non-state pension funds. The influence of the chosen investment strategy and the growth rate of pension reserves on the efficiency of managing pension reserves of NPFs is revealed.

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