Influence of the COVID-19 Pandemic on the Woric of the Bulgarian Pension Market

2021 ◽  
Vol 13 (2) ◽  
Author(s):  
Yordanka Hristova ◽  
◽  
◽  
Keyword(s):  
Statistical Data ◽  
Investment Decisions ◽  
Pension Funds ◽  
Objective Necessity

The article examines the growing threat of the COVID-19 pandemic and its impact on the Bulgarian pension market. The applied investment regulatory approaches are considered an objective necessity and a prerequisite for making investment decisions in the context of a pandemic situation. The main trends of the return, realized by the pension funds for the previous and the current year, and its ratio to the alternative losses are indicated through an analysis of statistical data in the context of the first pensions granted to the insured persons of the universal pension funds.

Challenging investment decision-making in pension funds

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carl-Christian Trönnberg ◽  
Sven Hemlin
Keyword(s):  
Decision Making ◽  
Critical Incident ◽  
Pension Fund ◽  
Investment Decision ◽  
Investment Decisions ◽  
Pension Funds ◽  
Content Type ◽  
Fund Managers ◽  
Intuitive Thinking ◽  
Investment Decision Making

PurposeThe purpose of this study was to gain a better understanding of pension fund managers investment thinking when confronted with challenging investment decisions. The study focuses on the theoretical question of how dual thinking processes in experts’ investment decision-making emerge. This question has attracted interest in economic psychology but has not yet been answered. Here, it is explored in the context of pension funds.Design/methodology/approachThe sample included 22 pension fund managers. The authors explored their decision-making by applying the critical incident interview technique, which entailed collecting investment decisions that fund managers retrieved from recent memory (Flanagan, 1954). Questions concerned the investment situation, the decision-making process and the challenges and uncertainties the fund managers faced.FindingsMany of the 61 critical incidents examined concerned challenging (mostly stock) investments based on extensive analysis (e.g. reliance on external analysts for advice; analysis of massive amounts of hard company and stock market information; scrutiny of company reports and personal meetings with CEOs). However, fund managers to a high degree based their decisions on soft information judgments such as experience and qualitative judgements of teams. The authors found heuristics, intuitive thinking, biases (sunk cost effects) and social influences in investment decision-making.Research limitations/implicationsThe sample is small and not randomly selected.Practical implicationsThe authors suggest anti-bias training and better acquaintance with human forecasting limitations for pension fund managers.Originality/valuePension fund managers’ investment thinking has not previously been investigated. The authors show the types of investment situations in which analytical and intuitive thinking and biases occur.

Political Representation and Governance: Evidence from the Investment Decisions of Public Pension Funds

2018 ◽  
Vol 73 (5) ◽  
pp. 2041-2086 ◽  
Author(s):  
ALEKSANDAR ANDONOV ◽  
YAEL V. HOCHBERG ◽  
JOSHUA D. RAUH
Keyword(s):  
Political Representation ◽  
Investment Decisions ◽  
Pension Funds ◽  
Public Pension

Why Convention Dominates Pension Fund Trustee Investment Decisionmaking

1998 ◽  
Vol 30 (6) ◽  
pp. 997-1015 ◽  
Author(s):  
G L Clark
Keyword(s):  
Analogical Reasoning ◽  
Pension Fund ◽  
Investment Decisions ◽  
Urban Infrastructure ◽  
Pension Funds ◽  
Development Projects ◽  
Risk And Uncertainty ◽  
Economic Psychology ◽  
Psychological Models ◽  
Fund Investment

Pension funds may be one of the few avenues now open for financing new urban infrastructure and development projects. But convention dominates pension fund trustees' investment decisions, so it is difficult to see how the ambitions of advocates of pension fund investment can be squared with trustees' behaviour. The question is: why does convention dominate? Drawing on previously reported interviews and case studies, I propose a framework through which to understand the dominance of convention. In doing so, I identify a set of behavioural traits that structure decisions. This framework is inspired by the contributions of Kahneman and Tversky and their colleagues for understanding the economic psychology of individual decisionmaking. The paper is intended to be a realistic account of the attributes of trustee decisionmaking, recognising the ingrained and systematic nature of the identified habits, rules, and norms. The paper is also inspired by Keynes's work on risk and uncertainty. In combination, I assess the potential for investment innovation by pension fund trustees, noting the importance of analogical reasoning in extending the range of pension funds investments. The paper closes with a comparison of the proposed framework with standard treatments of decisionmaking, including reference to the robustness of psychological models of habit.

scholarly journals Alternatives to Serve the Interests of Russian Pensioners

2020 ◽  
Author(s):  
Elena Ivanovna Kulikova
Keyword(s):  
Growth Rate ◽  
Labor Market ◽  
Older People ◽  
Pension Fund ◽  
Statistical Data ◽  
Pension System ◽  
Pension Funds ◽  
Living Standards ◽  
Retirement Age ◽  
Negative Phenomena

The results of the analysis of statistical data on the Russian labor market, employment and wages, as well as the specific features of the Russian pension system, provide the basis for several important conclusions. Firstly, the living standards of the majority of Russian pensioners do not meet their needs as the Russian pension system is focused on the achievement of minimum living standards. Secondly, the regulation on the functioning of the pension system established by Russian legislation is often violated by the regulators without coordination with economic entities and citizens, participants of the pension system, which prevents future pensioners from feeling protected upon retirement. For this reason, citizens of the retirement age do not seek to retire even when they reach the retirement age. The growth rate of working pensioners (who pay taxes, including insurance deductions to the Pension Fund of Russia and private pension funds) confirms this. Thirdly, there is a need to create a socially-comfortable environment for pensioners, to counteract the psychological problems of older people their sense of “uselessness” to society. The article proposes practical measures to mitigate the negative phenomena in the pension provision of Russian citizens.

Fund Managers and Their Investors

2017 ◽  
Author(s):  
Diane-Laure Arjaliès ◽  
Philip Grant ◽  
Iain Hardie ◽  
Donald MacKenzie ◽  
Ekaterina Svetlova
Keyword(s):  
Institutional Investors ◽  
Investment Decisions ◽  
Pension Funds ◽  
Principal Agent ◽  
Fixed Income ◽  
Fund Manager ◽  
Fund Managers ◽  
Time Horizons ◽  
Principal Agent Problem ◽  
Retail Investors

Chapter 3 examines the mechanisms through which clients impact fund managers’ practices and vice versa. The discussion encompasses fixed income investment as well as investment in shares. In both fixed income and shares, clients can include both institutional investors (such as pension funds) and retail investors (i.e. private individuals, though often guided by financial advisers). Their reasons for investment vary, leading to different time-horizons on their decisions, different ways of measuring performance, and different forms of interaction with the rest of the investment chain. They often rely on various types of advisers: investment consultants, independent financial advisers, and fund-rating companies. Variations of those kinds among the clients influence fund managers’ investment decisions, whether intentionally or not. Thus, the chapter suggests that the client–fund manager relationship is not a simple principal–agent problem, but a multi-faceted, contextually dependent, malleable matter.

Evolution of Nongovernmental Pension Funds in Russia

Upravlenie ◽  
2015 ◽  
Vol 3 (4) ◽  
pp. 32-40 ◽  
Author(s):  
Талыкова ◽  
A. Talykova
Keyword(s):  
Performance Indicators ◽  
Statistical Data ◽  
Pension Funds ◽  
Insurance Market ◽  
Pension Insurance ◽  
Rate Of Increase ◽  
The Russian Federation ◽  
Private Management ◽  
Further Development ◽  
Pension Payments

In this paper the author considers the dynamics and trends of nongovernmental pension funds (NPF) evolution in Russia in recent years. Statistical data on the NPF number, which is steadily declining, have been demonstrated; possible causes of this trend have been identified. The author has presented viewpoints of the financial and social blocks of the RF Government on pension savings preservation and pension reform continuation. The current situation in the corporatization of nongovernmental pension funds and their integration into the pension savings safeguard insurance system has been analyzed in this paper. The data for 2012-2015 on values of the nongovernmental pension funds’ pension savings and pension reserves, number of insured persons and participants involved in the NPF, average total account values on mandatory pension insurance (MPI) and nongovernmental pension provision (NPP), pension payments values, number of pensioners. Comparative data for MPI and NPP market evolution (key figures, rate of increase) have been presented. The presence of private management companies on MPI market has been analyzed; the pension savings values in nongovernmental pension funds, private management companies and Pension fund of the Russian Federation have been compared; reserves for the further development of NPF on the mandatory pension insurance market have been revealed. On the results of performance indicators analysis a list of the largest 13 NPF in terms of pension reserves (these are the funds which each has collected on its accounts more than 1 % of all pension reserves on the market) has been composed. A similar list has been composed in terms of pension savings — a list of the largest 20 NPF, which each has collected on its accounts more than 1 % of all NPF’s pension reserves. The funds indicators from these lists have been compared with the data from all other NPF, regularities differences in NPP and MPI lists have been revealed. Based on identified trends the author makes forecasts on the nongovernmental pension funds development in each presence segment.

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

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.

scholarly journals Does performance persistence exist in mutual and pension funds? Evidence from Turkey

2021 ◽  
Vol 18 (4) ◽  
pp. 326-339
Author(s):  
Tayfun Ozkan ◽  
Hakki Ozturk
Keyword(s):  
Performance Analysis ◽  
Human Resource ◽  
Investment Decisions ◽  
Pension Funds ◽  
Performance Persistence ◽  
Fund Management ◽  
Empirical Results ◽  
Fund Managers ◽  
Human Resource Policies ◽  
Persistence Rate

The objective of this study is to investigate the performance persistence of Turkish mutual and pension funds. 310 mutual and 259 pension funds were analyzed between the period of 2010–2019 in order to determine if there is an evidence of performance persistence. In this study, a persistence rate is developed, and the skill ratio is used to crosscheck the results of the persistence rate. Furthermore, six different risk-adjusted return measures, such as Sharpe, Treynor, Information, Jensen’s alpha, Sortino, and Omega ratios are calculated to analyze whether funds also exhibit superior risk-adjusted returns. The results indicate that only 2% of funds demonstrate persistence above 50%, and 15 out of 20 fund categories do not have any funds that show persistence in 10 years. Most of the persistent funds have positive skill ratios, and it is observed that the persistence rate is effective. However, it cannot be stated that there is performance persistence in the Turkish fund management industry, since performance persistence is not evident for various fund types, so investors do not need to invest in the best funds of the previous year. Additionally, the empirical results associated with risk-adjusted performance analysis indicate that persistent funds also do not generally yield higher risk-adjusted returns. The lack of persistence in funds’ performance is a significant result for investors in their investment decisions, for fund managers in their human resource policies and bonus schemes, and for regulators in their policy decisions.

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