Publication: Private Pension Systems : Cross-Country Investment Performance
Date
2012-05
ISSN
Published
2012-05
Author(s)
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.
Citation
“Musalem, Alberto R.; Pasquini, Ricardo. 2012. Private Pension Systems : Cross-Country Investment Performance. Social Protection and Labor Discussion Paper;No. 1214. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/1ab33355-e524-5d0b-a78a-5d5d5f7a929b License: CC BY 3.0 IGO.”