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Private pension systems : cross-country investment performance

Author

Listed:
  • Musalem, Alberto R.
  • Pasquini, Ricardo
Abstract
This study investigates the performance of private pensions systems across countries a topic which has yet to be adequately addressed in the literature. Specifically, this study examines the relationship between pension fund performance (as captured by gross real rates of return and the three year standard deviation of those returns) and the structure of a country's private pension industry and the design of its pension schemes. A database covering 27 countries over the period 1990-2007 was created for this research. The study's key findings include: (i) higher returns are associated with size (systems with more assets under management tend to generate higher returns), type (occupational schemes tend to generate higher returns than do personal pension schemes and closed schemes tend to generate higher returns than do open schemes), and number (systems with multiple funds tend to generate higher returns than those with a single fund); and (ii) lower volatility in pension system returns is associated with older systems, voluntary (rather than mandatory) systems, systems with restrictions on foreign investing, and systems with minimum return guarantees.

Suggested Citation

  • Musalem, Alberto R. & Pasquini, Ricardo, 2012. "Private pension systems : cross-country investment performance," Social Protection Discussion Papers and Notes 68937, The World Bank.
    • Handle: RePEc:wbk:hdnspu:68937
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    References listed on IDEAS

    as
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    10. Gary Burtless, 2007. "International Investment for Retirement Savers: Historical Evidence on Risk and Returns," Working Papers, Center for Retirement Research at Boston College wp2007-05, Center for Retirement Research, revised Feb 2007.
    11. Djankov, Simeon & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2008. "The law and economics of self-dealing," Journal of Financial Economics, Elsevier, vol. 88(3), pages 430-465, June.
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    Cited by:

    1. Senderski, Marcin, 2014. "Assessing the strictness of portfolio-related regulation of pension funds: Rethinking the definition of prudent," MPRA Paper 56610, University Library of Munich, Germany.
    2. Danielyan, Vladimir & Polterovich, Victor, 2021. "Пенсионные Реформы И Теневой Сектор: Моделирование Поведения Доходных Групп [Pension reforms and the informal sector: modeling of income groups behavior]," MPRA Paper 110676, University Library of Munich, Germany.
    3. Rafal Chomik & John Piggott, 2015. "Population Ageing and Social Security in Asia," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(2), pages 199-222, July.
    4. Orkun ÇELİK & Deniz ERER & Elif ERER, 2018. "2008 Küresel Krizinin Bireysel Emeklilik Fonları Oynaklığı Üzerindeki Etkisi: Türkiye Örneği," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(35).
    5. Cerutti, Paula & Fruttero, Anna & Grosh, Margaret & Kostenbaum, Silvana & Oliveri, Maria Laura & Rodriguez-Alas, Claudia & Strokova, Victoria, 2014. "Social assistance and labor market programs in Latin America : methodology and key findings from the social protection database," Social Protection Discussion Papers and Notes 88769, The World Bank.
    6. Ling-Ni Boon & Marie Brière & Carole Gresse & Bas J. M. Werker, 2013. "Regulatory Environment and Pension Investment Performance," Post-Print hal-01492619, HAL.
    7. Domelen, Julie van, 2012. "Togo : towards a national social protection policy and strategy," Social Protection Discussion Papers and Notes 89000, The World Bank.
    8. repec:dau:papers:123456789/13629 is not listed on IDEAS
    9. Robalino, David A. & Weber, Michael, 2013. "Designing and implementing unemployment benefit systems in middle and low income countries : key choices between insurance and savings accounts," Social Protection Discussion Papers and Notes 90348, The World Bank.

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    Keywords

    Debt Markets; Emerging Markets; Mutual Funds; Economic Theory&Research; Currencies and Exchange Rates;
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