Pension Funds, Capital Markets, and the Power of Diversification

The potential for pension funds to contribute to capital markets and thereby economic growth has been argued on a theoretical basis and demonstrated empirically. However, reforms fostering the development of funded pension systems have not had the...

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Main Authors:	Stewart, Fiona, Despalins, Romain, Remizova, Inna
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	INVESTMENT DECISIONS CAPITAL MARKETS DIVERSIFICATION PENSION FUNDS ASSET ALLOCATION REGULATION PORTFOLIO
Online Access:	http://documents.worldbank.org/curated/en/217121499259303193/Pension-funds-capital-markets-and-the-power-of-diversification http://hdl.handle.net/10986/27639

id	okr-10986-27639
recordtype	oai_dc
spelling	okr-10986-276392021-06-08T14:42:47Z Pension Funds, Capital Markets, and the Power of Diversification Stewart, Fiona Despalins, Romain Remizova, Inna INVESTMENT DECISIONS CAPITAL MARKETS DIVERSIFICATION PENSION FUNDS ASSET ALLOCATION REGULATION PORTFOLIO The potential for pension funds to contribute to capital markets and thereby economic growth has been argued on a theoretical basis and demonstrated empirically. However, reforms fostering the development of funded pension systems have not had the economic impact hoped for in some countries. Pension fund portfolios in some cases have remained highly exposed to shorter-term assets, such as bank deposits and shorter-term government bonds. This, in turn, has led to relatively low investment returns, thereby potentially affecting income adequacy in retirement. This paper looks at the potential regulatory hurdles to long-term investment by pension funds, while also proposing international diversification and the creation of domestic investment opportunities to help portfolio diversification and ultimately improve the delivery of secure, adequate pensions. 2017-07-19T17:04:52Z 2017-07-19T17:04:52Z 2017-07 Working Paper http://documents.worldbank.org/curated/en/217121499259303193/Pension-funds-capital-markets-and-the-power-of-diversification http://hdl.handle.net/10986/27639 English en_US Policy Research Working Paper;No. 8136 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	INVESTMENT DECISIONS CAPITAL MARKETS DIVERSIFICATION PENSION FUNDS ASSET ALLOCATION REGULATION PORTFOLIO
spellingShingle	INVESTMENT DECISIONS CAPITAL MARKETS DIVERSIFICATION PENSION FUNDS ASSET ALLOCATION REGULATION PORTFOLIO Stewart, Fiona Despalins, Romain Remizova, Inna Pension Funds, Capital Markets, and the Power of Diversification
relation	Policy Research Working Paper;No. 8136
description	The potential for pension funds to contribute to capital markets and thereby economic growth has been argued on a theoretical basis and demonstrated empirically. However, reforms fostering the development of funded pension systems have not had the economic impact hoped for in some countries. Pension fund portfolios in some cases have remained highly exposed to shorter-term assets, such as bank deposits and shorter-term government bonds. This, in turn, has led to relatively low investment returns, thereby potentially affecting income adequacy in retirement. This paper looks at the potential regulatory hurdles to long-term investment by pension funds, while also proposing international diversification and the creation of domestic investment opportunities to help portfolio diversification and ultimately improve the delivery of secure, adequate pensions.
format	Working Paper
author	Stewart, Fiona Despalins, Romain Remizova, Inna
author_facet	Stewart, Fiona Despalins, Romain Remizova, Inna
author_sort	Stewart, Fiona
title	Pension Funds, Capital Markets, and the Power of Diversification
title_short	Pension Funds, Capital Markets, and the Power of Diversification
title_full	Pension Funds, Capital Markets, and the Power of Diversification
title_fullStr	Pension Funds, Capital Markets, and the Power of Diversification
title_full_unstemmed	Pension Funds, Capital Markets, and the Power of Diversification
title_sort	pension funds, capital markets, and the power of diversification
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/217121499259303193/Pension-funds-capital-markets-and-the-power-of-diversification http://hdl.handle.net/10986/27639
_version_	1764465616805167104

Pension Funds, Capital Markets, and the Power of Diversification

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