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Evaluation of second pillar pension funds’ supply and investment strategies in Baltics

The Journal of Business Economics and Management

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Field Value
 
Title Evaluation of second pillar pension funds’ supply and investment strategies in Baltics
 
Creator Medaiskis, Teodoras
Gudaitis, Tadas
 
Subject second pillar pension fund
pension funds’ supply
pension funds grouping
pension accumulation company
investment risk
investment strategy
investment performance
 
Description Pension accumulation companies in Baltics are allowed to offer any number of second pillar pension funds with different investment strategies. Funds are traditionally categorized by maximum limit of investments in equities. It shall help participants to choose the fund according to their risk aversion and age. However, no scientific research has been conducted to assess correctness of such a breakdown and to estimate the differences (if they exist) of pension funds assigned to distinct groups. The results show that there are limitations to the supply side of second pillar pension funds and to participants’ possibilities to select appropriate investment strategies over life-cycle. The findings from statistical analysis suggest that used classification of pension funds is not necessarily meaningful. Even if two funds belong to different categories, this does not mean that their investment strategies and results will differ significantly. It raises the need for stricter rules for setting pension funds’ investment strategies and linkage to age of participants in order to increase compatibility between supply of funds and participants’ needs over life-cycle.
 
Publisher VGTU Press Technika
 
Date 2017-12-20
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier https://journals.vgtu.lt/index.php/JBEM/article/view/1149
10.3846/16111699.2017.1381145
 
Source Journal of Business Economics and Management; Vol 18 No 6 (2017); 1174-1192
2029-4433
1611-1699
 
Language eng
 
Relation https://journals.vgtu.lt/index.php/JBEM/article/view/1149/892
 
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