Publication:
The Relevance of Index Funds for Pension Investment in Equities

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dc.contributor.authorShah, Ajay
dc.contributor.authorFernandes, Kshama
dc.date.accessioned2014-08-27T18:42:46Z
dc.date.available2014-08-27T18:42:46Z
dc.date.issued2000-11
dc.description.abstractThe rise of index funds over the past 25 years has been a remarkable phenomenon. The traditional rationale for the success of index funds is market efficiency, net of transaction costs. The authors also focus on the role of agency conflicts between fund managers and investors, which are hard to resolve, given the low power of statistical tests of performance. Most of the empirical evidence about the superiority of index funds comes from the United States. The authors discuss issues associated with the application of index funds in developing countries, as well as policy issues in the financial sector that affect the enabling market infrastructure for index funds. They also apply these ideas to thinking about the relevance of index funds for pension investment. The equity premium provides powerful motivation for equity investment by pension funds. Index funds make it possible to sidestep the complexities of forming contracts and monitoring institutions to govern fund managers. In developing countries that seek to use index funds in pension investment, there are avenues through which policymakers can make index funds more viable. In many countries there are significant avenues for improving construction of the market index as well as market mechanisms used in the equity market.en
dc.identifierhttp://documents.worldbank.org/curated/en/2000/11/729385/relevance-index-funds-pension-investment-equities
dc.identifier.doi10.1596/1813-9450-2494
dc.identifier.urihttps://hdl.handle.net/10986/19773
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2494
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectASSETS
dc.subjectAUCTIONS
dc.subjectBENCHMARK
dc.subjectBONDS
dc.subjectCOLLATERAL
dc.subjectCONTESTABILITY
dc.subjectCUSTODY
dc.subjectDEALERS
dc.subjectDERIVATIVES
dc.subjectDIMINISHING RETURNS
dc.subjectDIVIDENDS
dc.subjectECONOMICS
dc.subjectEMERGING MARKETS
dc.subjectEXPENDITURES
dc.subjectFINANCIAL SECTOR
dc.subjectGDP
dc.subjectINDEXATION
dc.subjectLIQUIDITY
dc.subjectMARKET FLUCTUATIONS
dc.subjectMARKET RETURNS
dc.subjectMERGERS
dc.subjectMUTUAL FUND
dc.subjectNEGATIVE EXTERNALITIES
dc.subjectPENSION FUNDS
dc.subjectPORTFOLIO
dc.subjectPRICE FLUCTUATIONS
dc.subjectPURCHASES
dc.subjectREINVESTMENT
dc.subjectSHAREHOLDERS
dc.subjectSPREAD
dc.subjectSTOCKS
dc.subjectTRANSACTIONS COSTS
dc.subjectTURNOVER
dc.subjectWEALTH
dc.titleThe Relevance of Index Funds for Pension Investment in Equitiesen
dspace.entity.typePublication
okr.crossref.titleThe Relevance of Index Funds for Pension Investment in Equities
okr.date.disclosure2000-11-30
okr.date.doiregistration2025-04-10T09:17:24.897712Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2000/11/729385/relevance-index-funds-pension-investment-equities
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid301931468741355224
okr.identifier.doi10.1596/1813-9450-2494
okr.identifier.externaldocumentum000094946_00121302021466
okr.identifier.internaldocumentum729385
okr.identifier.reportWPS2494
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/12/22/000094946_00121302021466/Rendered/PDF/multi_page.pdfen
okr.sectorCapital Markets Development
okr.sectorFinance
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicAgricultural Knowledge and Information Systems
okr.topicPayment Systems and Infrastructure
okr.topicInternational Economics and Trade::Access to Markets
okr.unitFinance, Development Research Group
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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