scholarly journals Polish Pension Funds Investment - is There A Place For Real Property in A Portfolio?

2010 ◽  
Vol 9 (1) ◽  
pp. 151-166
Author(s):  
Magdalena Zaleczna ◽  
Rafał Wolski
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
Capital Allocation ◽  
Portfolio Diversification ◽  
Financial Resources ◽  
Constant Flow ◽  
Real Property ◽  
Return Levels ◽  
Entire Economy

Polish Pension Funds Investment - is There A Place For Real Property in A Portfolio?The pension fund investments should be characterised by a long term, low risk and profitability, which implicates the necessity of portfolio diversification. In general, pension funds having regular long-term contributions should develop the long-term policy and its effects would be responsible for the economic position of their future beneficiaries. The ways of capital allocation are also critical in terms of the entire economy, as a constant flow of financial resources provided by pension funds stimulates the activity of its recipients. The typical assets in a pension fund's portfolio in the developed economy are stocks, bonds and real property owing to low (negative) correlation between these assets and their diversified potential. The legal investment limits imposed on the Polish pension funds exclude direct investment in real property, which is responsible - in the authors' opinion - for the lower level of diversification and hinders the risk reduction. The authors analyze the Polish pension fund portfolios focusing on risk and return levels. The aim of the study is to find the answer to the important question about the results of hypothetically added real property to the portfolios of pension funds.

Long-Term Rates of Interest in the Valuation of a Pension Fund

1976 ◽  
Vol 21 (03) ◽  
pp. 286-340 ◽  
Author(s):  
C. D. Daykin
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
Insurance Companies ◽  
Common Misconception ◽  
The Future

1. It seems to be a common misconception outside the actuarial profession that those within that illustrious body are mysteriously able to peer into their crystal balls and come up with prophetic answers about the future progress of pension funds, insurance companies and other allied matters. The appearance of an actuarial report with its air of finality and disclosure of a definite surplus, deficiency, bonus declaration or whatever it may be, only endorses the impression that the actuary is reporting on the unique and unquestionable answer to the problem in hand.

Evaluating the impact on saving of tax-favored retirement plans

2013 ◽  
Vol 13 (1) ◽  
pp. 62-87 ◽  
Author(s):  
MONICA PAIELLA ◽  
ANDREA TISENO
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
Retirement Plans ◽  
Household Saving ◽  
Pension Schemes ◽  
The Social ◽  
Recent Reform ◽  
The Impact ◽  
Retirement Wealth

AbstractThis paper exploits a recent reform of private pension schemes in Italy to identify the impact on household saving of tax-favored retirement saving plans. The reform was part of the restructuring of the social security system and was aimed at rising private long-term saving by making pension funds more attractive and convenient. We control for unobserved saver heterogeneity and a central focus is on substitution across saving instruments. We find that the pension fund legislation had a strong effect on the allocation of saving and triggered substantial substitution of non-tax-favored non-retirement wealth for tax-favored pension funds. In contrast, we find that it had little, if any effect on household saving flows. Our findings also suggest that the provision of ‘closed’ pension funds might significantly affect the decision to invest in private retirement schemes.

scholarly journals Private Pension Fund Performance and Comparison with Basic Investment Instruments in Turkey

2015 ◽  
Author(s):  
Turgut Özkan ◽  
Özge Demirkale
Keyword(s):  
Pension Fund ◽  
Fund Performance ◽  
Pension Funds ◽  
Private Pension ◽  
Portfolio Performance ◽  
Social Expectation ◽  
The Social ◽  
Retirement Funds ◽  
Additional Income

In 2001, after the preparation of legal infrastructure in Turkey, private pension fund system started to be complementary to the Social Security system. There are many expectations from the private pension fund system both socially and economically. Social expectation is to direct individuals to alternative investment instruments to provide additional income for retirement. Economic expectation is to provide long-term funding to support the economic development. Pension fund companies have the most important responsibility to meet these expectations. In this study, the profits of investment instruments and individual pension funds are compared in a long term perspective, using three basic portfolio performance measures. The term between January 2004 and September 2014 have been considered. Investment alternatives have been discussed in detail. BIST100, deposit, gold and currency basket (USD+EUR) are the investment instruments that are compared with individual pension funds. In addition, individual pension funds have been analyzed on company basis and the achievements of the pension fund companies have been revealed during the term mentioned above. According to our analysis, it has been concluded that personal retirement funds lost value considerably, especially due to inflation.

scholarly journals Pension Fund Corporate Engagement

2004 ◽  
Vol 59 (1) ◽  
pp. 142-171 ◽  
Author(s):  
Gordon L. Clark ◽  
Tessa Hebb
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
Management Decision ◽  
Responsible Investing ◽  
Global Standards ◽  
Management Decision Making ◽  
Anglo American ◽  
Investment Portfolios ◽  
The Impact

Pension fund capitalism is a new, albeit evolving, stage of Anglo-American capital market development. It is marked by the ability of pension funds to aggregate the widely disbursed ownership of beneficiaries and therefore act as single entities with a unified voice. Pension funds within their investment portfolios are increasingly using this voice to engage companies. Such corporate engagement in its broadest definition is the use of one’s ownership position to influence company management decision making. Corporate engagement brings together four distinct underlying currents: first, the increased use of passive index funds; second, the corporate governance movement; third, the growing impact of socially responsible investing; and, finally, the impact of new global standards. At its best corporate engagement offers a long-term view of value that both promotes higher corporate, social and environmental standards and adds share value, thus providing long-term benefits to future pension beneficiaries.

scholarly journals PORTFOLIO AND BENCHMARK RETURNS OF PRIVATE PENSION FUNDS: A COMPARATIVE ANALYSIS FOR TURKEY

2020 ◽  
Vol 8 (5) ◽  
pp. 3891-3910
Author(s):  
Fatih KAYHAN ◽  
Mehmet İSLAMOĞLU ◽  
Mehmet APAN
Keyword(s):  
Capital Market ◽  
Pension Fund ◽  
Pension System ◽  
Pension Funds ◽  
Private Pension ◽  
Regulatory Structure ◽  
Portfolio Returns ◽  
Pension Fund Management ◽  
Portfolio Structure

The purpose of this study is to ascertain whether pension fund returns are in line with benchmark returns taking into account the regulatory structure in Turkey. The methodology of the study is the cumulative portfolio returns. Data is retrieved from TEFAS Platform and official web site of Capital Market Board of Turkey. Portfolio and benchmark of pension funds are compared. Only standard pension funds are covered within the scope of voluntary pension funds of Turkey. Findings are as follows; Portfolio returns and benchmark returns are in line significantly. The results are partly attributable to the regulations about pension fund management and portfolio structure. The paper also shows that in the long term, the volatility of returns decreases and returns prove to conform with the primary purpose of the private pension system.                            

scholarly journals Pension Funds, the Requirement of Providing the Minimum Guaranteed Return and Excessive Legislative Restrictions of Pension Fund Investments

2012 ◽  
Vol 7 (2) ◽  
pp. 7-22 ◽  
Author(s):  
Tanja Markovič Hribernik ◽  
Igor Jakopanec
Keyword(s):  
Stress Testing ◽  
Pension Fund ◽  
Pension Funds ◽  
Risk Measurement ◽  
Portfolio Diversification ◽  
Financial Risks ◽  
Management Process ◽  
Risk Management Process ◽  
Testing Practices

Abstract To reduce the exposure of the pension fund's members to financial risks, legislation in Slovenia and some other countries promises a so-called minimum guaranteed return and at the same time hinders the portfolio diversification process of pension funds. We intend to demonstrate in this article, on a case study basis and using a combination of empirical data from two Slovenian pension funds and a hypothetical one, that by precisely matching the investments' characteristics to the characteristics of the pension fund's liabilities, some important financial risks can be mitigated, while others can even be hedged entirely. We also intend to demonstrate that with the implementation of a proper policy of risk measurement and management, complemented with stress testing practices, excessive legislative restrictions for investments are no longer necessary. Some restrictions can even hinder portfolio diversification and the risk management process.

scholarly journals Propuesta de un Modelo Alternativo para Mejorar la Rentabilidad de los Fondos Captados por el Régimen Obligatorio de Pensiones Complementarias de Costa Rica (A proposal for an alternate model to increase the profitability of supplementary pension)

2013 ◽  
Vol 7 (1) ◽  
pp. 9
Author(s):  
Carla Marchena Segura ◽  
Rebeca Marín Alvarado
Keyword(s):  
Costa Rica ◽  
Pension Fund ◽  
Pension System ◽  
Pension Funds ◽  
Costa Rican ◽  
Portfolio Diversification ◽  
Variable Rate ◽  
Investment Portfolio ◽  
Alternate Model

<p>El presente trabajo de investigación plantea unapropuesta de un modelo alternativo para mejorar larentabilidad de los fondos captados por el RégimenObligatorio de Pensiones Complementarias de CostaRica, a partir del modelo de Multifondos implementadoen Chile y Colombia, para un manejo más eficiente delas inversiones de los Fondos de Pensiones. El modelode Multifondos propuesto consiste en un conjuntode tres fondos de pensiones, los cuales se diferencianen cuanto a sus límites de inversión en renta variable.La ley y reglamentos en relación con el ROP, permitenadoptar el modelo Multifondos, ya que las modificacionesa realizar son a nivel de funcionamiento operativode la administración de las cuentas individuales y delas inversiones, para lo cual sería necesario modificarúnicamente el Reglamento. Los Multifondos puedenayudar a resolver las deficiencias del Régimen Obligatoriode Pensiones Complementarias vigente, principalmente enmateria de diversificación de los portafolios de inversión.</p><p> </p><p><strong>ABSTRACT</strong></p><p>This study proposes an alternate model to increasethe profitability of supplementary pension funds gatheredby the Costa Rican mandatory pension system based onthe multiple funds model applied in Chile and Colombia,for a better and efficient way to manage the investmentsof Pension Funds. The proposed multiple funds modelis comprised by three pension funds, differentiatedonly by their variable rate investing limits. The rulesand regulations of the Mandatory Pension System(MPS) allow the adoption of a multiple funds model,as the modifications to be done for the management ofindividual accounts and investments are at the operationallevel, requiring only a modification of the regulations.Multiple funds can help clear out current deficiencies ofthe Supplementary Pension Fund Mandatory System,mainly regarding investment portfolio diversification.</p>

scholarly journals Problems of application of the provisions of the law on the prohibition of withdrawal of assets of public pension funds located in liquidated banks

2020 ◽  
pp. 286-291
Author(s):  
Oleh Oliinyk
Keyword(s):  
Pension Fund ◽  
Pension System ◽  
Pension Funds ◽  
Private Pension ◽  
Practical Application ◽  
Long Term Storage ◽  
The Law ◽  
Legal Mechanism ◽  
Term Storage

The article analyzes the current legislation of Ukraine on private pension funds provision and liquidation of banks. In particular,the inability of a private pension fund to be the owner of pension assets, which are accumulated in it, identified and described by thestatutory guarantees of preservation of pension assets, is analyzed and substantiated. The practice of application of the specified provisionsof the law by courts is analyzed. The problem of practical application of the guarantees of preservation of pension assets definedby the law is revealed and the general ways of the decision of this problem are offered.Today Ukraine is preparing for the practical introduction of the second level of the pension system – mandatory pension accumulation,which should ensure the long-term accumulation, investment and safekeeping of pension assets of future retirees. Thus thereliability of the functioning of all levels of the pension system of Ukraine requires reliable long-term storage of pension assets. In particular,there is the issue of protecting the safety of pension assets during the bankruptcy of custodian banks of pension assets.The current legislation of Ukraine contains norms that guarantee the preservation of pension assets. But in practice there arewidespread cases of non-return of pension assets to private pension funds from liquidated banks. Therefore, there is an urgent need toidentify the source of this problem and suggest ways to solve it. Ukrainian legislation needs to be improved in terms of establishing a clear legal mechanism and normatively setting deadlinesfor the Fund to return deposits of individuals to private pension funds of pension assets owned by insured individuals participating insuch funds, and accumulated and accounted for in such funds.

scholarly journals Otwarte Fundusze Emerytalne — przegląd istotnych zmian ustawodawstwa w latach 1999–2019

2019 ◽  
Vol 28 ◽  
pp. 313-336
Author(s):  
Adam Andrzej Koronkiewicz
Keyword(s):  
Pension Fund ◽  
Pension System ◽  
Comparative Method ◽  
Pension Funds ◽  
Legal Analysis ◽  
Legal Text ◽  
The Subject ◽  
Legislative Changes

Tematyka niniejszego artykułu skupia się na wyodrębnieniu i opisaniu istotnych zmian ustawodawstwa dotyczącego funkcjonowania Otwartych Funduszy Emerytalnych OFE jako instytucji realizujących zadania kapitałowego filaru polskiego systemu emerytalnego. Celem opracowania jest ocena, czy poszczególne nowelizacje były zmianami paradygmatycznymi czy parametrycznymi, czy miały ograniczający wpływ na funkcjonowanie OFE oraz czy można je zakwalifikować do długofalowego procesu wygaszania rynku tych instytucji. W artykule zastosowano dogmatycznoprawną analizę tekstu prawnego, zarówno obowiązujących aktów prawnych, jak i ich historycznych wersji, przy wykorzystaniu metody porównawczej. Phasing-out of the Open Pension Fund market — revision of the legislative changes over the years 1999–2019This article focuses on the subject of the separation and description of significant changes in legal acts that are the basis for the activity of Open Pension Funds OFEs as institutions that perform the tasks of the capital pillar in the Polish pension system. The aim of the study is to assess whether individual amendments were structural or parametric changes, whether they had a limiting effect on the activity of open pension funds and whether they could be qualified for the long-term phasing-out process of the market of these institutions. The article uses dogmatic legal analysis of the legal text, both legal acts in force and their historical versions using the comparative method.

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