Upgrading The Investment Policy Framework Of Public Pension Funds

Author : Dimitri Vittas
Publisher : World Bank Publications
Page : 68 pages
File Size : 48,8 Mb
Release : 2008
Category : Alternative asset
ISBN : 8210379456XXX

Get Book

Upgrading the Investment Policy Framework of Public Pension Funds by Dimitri Vittas Pdf

Abstract: Public pension funds have the potential to benefit from low operating costs because they enjoy economies of scale and avoid large marketing costs. But this important advantage has in most countries been dissipated by poor investment performance. The latter has been attributed to a weak governance structure, lack of independence from government interference, and a low level of transparency and public accountability. Recent years have witnessed the creation of new public pension funds in several countries, and the modernization of existing ones in others, with special emphasis placed on upgrading their investment policy framework and strengthening their governance structure. This paper focuses on the experience of four new public pension funds that have been created in Norway, Canada, Ireland and New Zealand. The paper discusses the safeguards that have been introduced to ensure their independence and their insulation from political pressures. It also reviews their performance and their evolving investment strategies. All four funds started with the romantic idea of operating as 'managers of managers' and focusing on external passive management but their strategies have progressively evolved to embrace internal active management and significant investments in alternative asset classes. The paper draws lessons for other countries that wish to modernize their public pension funds.

Author : Dimitri Vittas,Gregorio Impavido,Ronan O'Connor
Publisher : Unknown
Page : 128 pages
File Size : 45,5 Mb
Release : 2012
Category : Electronic
ISBN : OCLC:931669121

Get Book

Upgrading the Investment Policy Framework of Public Pension Funds by Dimitri Vittas,Gregorio Impavido,Ronan O'Connor Pdf

Public pension funds have the potential to benefit from low operating costs because they enjoy economies of scale and avoid large marketing costs. But this important advantage has in most countries been dissipated by poor investment performance. The latter has been attributed to a weak governance structure, lack of independence from government interference, and a low level of transparency and public accountability. Recent years have witnessed the creation of new public pension funds in several countries, and the modernization of existing ones in others, with special emphasis placed on upgrading their investment policy framework and strengthening their governance structure. This paper focuses on the experience of four new public pension funds that have been created in Norway, Canada, Ireland and New Zealand. The paper discusses the safeguards that have been introduced to ensure their independence and their insulation from political pressures. It also reviews their performance and their evolving investment strategies. All four funds started with the romantic idea of operating as 'managers of managers' and focusing on external passive management but their strategies have progressively evolved to embrace internal active management and significant investments in alternative asset classes. The paper draws lessons for other countries that wish to modernize their public pension funds.

Author : Sudhir Rajkumar,Mark C. Dorfman
Publisher : World Bank Publications
Page : 364 pages
File Size : 44,9 Mb
Release : 2011
Category : Social Science
ISBN : 9780821384701

Get Book

Governance and Investment of Public Pension Assets by Sudhir Rajkumar,Mark C. Dorfman Pdf

And key messages -- Key principles of governance and investment management -- Governance of public pension assets -- Governance structures and accountabilities -- Qualification, selection, and operation of governing bodies -- Operational policies and procedures -- Managing fiscal pressures in defined-benefit schemes -- Policy responses to turbulent financial markets -- Investment of public pension assets -- Defining the investment policy framework for public pension funds -- Managing risk for different cohorts in defined-contribution schemes -- An asset-liability approach to strategic asset allocation for pension funds -- In-house investment versus outsourcing to external investment managers -- International investments and managing the resulting currency risk -- Alternative asset classes and new investment themes.

Author : Mr.Udaibir S. Das,Mr.Adnan Mazarei,Han van der Hoorn
Publisher : International Monetary Fund
Page : 330 pages
File Size : 46,6 Mb
Release : 2010-12-09
Category : Business & Economics
ISBN : 9781589069275

Get Book

Economics of Sovereign Wealth Funds by Mr.Udaibir S. Das,Mr.Adnan Mazarei,Han van der Hoorn Pdf

The book covers a wide range of topics of relevance to policymakers in countries that have sovereign wealth funds (SWFs) and those that receive SWF investments. Renowned experts in the field have contributed chapters. The book is organized around four themes: (1) the role and macrofinancial linkages of SWFs, (2) institutional factors, (3) investment approaches and financial markets, and (4) the postcrisis outlook. The book also discusses the challenges facing sovereign wealth funds in the coming years, from an inside perspective on countries, including Canada, Chile, China, Norway, Russia, and New Zealand. Economics of Sovereign Wealth Funds will contribute to a further understanding of the nature, strategies and behavior of SWFs and the environment in which they operate, as their importance is likely to grow in the coming years.

Author : United States. Congress. House. Committee on Financial Services. Subcommittee on Domestic and International Monetary Policy, Trade, and Technology
Publisher : Unknown
Page : 168 pages
File Size : 46,5 Mb
Release : 2008
Category : Business & Economics
ISBN : PSU:000063523584

Get Book

Foreign Government Investment in the U.S. Economy and Financial Sector by United States. Congress. House. Committee on Financial Services. Subcommittee on Domestic and International Monetary Policy, Trade, and Technology Pdf

Author : Kees Koedijk,Alfred Slager,Jaap van Dam
Publisher : John Wiley & Sons
Page : 328 pages
File Size : 50,6 Mb
Release : 2019-04-08
Category : Business & Economics
ISBN : 9781119437659

Get Book

Achieving Investment Excellence by Kees Koedijk,Alfred Slager,Jaap van Dam Pdf

Crucial methods, tactics and tools for successful pension fund management Achieving Investment Excellence offers trustees and asset managers a comprehensive handbook for improving the quality of their investments. With a stated goal of substantially and sustainably improving annual returns, this book clarifies and demystifies important concepts surrounding trustee duties and responsibilities, investment strategies, analysis, evaluation and much more. Low interest rates are making the high cost of future pension payouts fraught with tension, even as the time and knowledge required to manage these funds appropriately increases — it is no wonder that pensions are increasingly seen as a financial liability. Now more than ever, it is critical that trustees understand exactly what contributes to investment success — and what detracts from it. This book details the roles, the tools and the strategies that make pension funds pay off. Understand the role of pension funds and the fiduciary duty of trustees Learn the tools and kills you need to build profound and lasting investment excellence Analyse, diagnose and improve investment quality of funds using concrete tools and instruments Study illustrative examples that demonstrate critical implementation and execution advice Packed with expert insight, crucial tools and real-life examples, this book is an important resource for those tasked with governing these. Achieving Investment Excellence provides the expert insight, clear guidance and key wisdom you need to manage these funds successfully.

Author : Dimitri Vittas
Publisher : World Bank Publications
Page : 23 pages
File Size : 54,9 Mb
Release : 2008
Category : Debt Markets
ISBN : 8210379456XXX

Get Book

A Short Note on the Atp Fund of Denmark by Dimitri Vittas Pdf

Abstract: The Danish ATP (Arbejdmarkedets TillaegsPension or Labor Market Supplementary Pension) fund is a public pension fund that was created in 1964 to complement the universal pension benefit that is financed from general tax revenues and is paid to all old-age residents. When it was created, participation in ATP was compulsory on most working people. But over the last decade or so compulsory coverage has been expanded to most recipients of transfer income. Contribution amounts are set in absolute terms, but are low relative to earnings (less than 1 percent of average earnings). ATP has benefited from scale economies and compulsory worker participation and has been able to operate with high efficiency and low costs. Its investment performance has been uneven over the years, reflecting the applied investment policies and rules as well as prevailing financial conditions. In recent years, it has been a leader among Danish pension institutions in adopting innovative investment policies and has enjoyed an enviable record of high investment returns and low operating costs. In addition, it has long offered deferred group annuities with guaranteed benefits and periodic bonuses (with profits policies). However, ATP also suffers from several weaknesses and shortcomings. It has a cumbersome governance structure, rooted in labor market relations and the role of social partners, while its group annuities have been based on rather 'idiosyncratic' risk-sharing arrangements. Nevertheless, it took the lead in using long-dated interest-rate swaps in euro markets and recently created a department that specializes in hedging its pension liabilities. And it is in the process of adopting a new plan for guaranteed benefits that aims to enhance the management of both investment and longevity risks.

Author : Gregorio Impavido,Ian Tower
Publisher : International Monetary Fund
Page : 58 pages
File Size : 54,6 Mb
Release : 2009-07
Category : Business & Economics
ISBN : IND:30000111481895

Get Book

How the Financial Crisis Affects Pensions and Insurance and Why the Impacts Matter by Gregorio Impavido,Ian Tower Pdf

We use a calibrated multi-sector DSGE model to analyze the likely impact of oil windfalls on the Ghanaian economy, under alternative fiscal and monetary policy responses. We distinguish between the short-run impact, associated with demand-related pressures, and the medium run impact on competitiveness and growth. The impact on inflation and the real exchange rate could be moderate, especially if the fiscal authorities smooth oil-related spending or increase public spending's import content. However, a policy mix that results in both a fiscal expansion and the simultaneous accumulation of the foreign currency proceeds from oil as international reserves to offset the real appreciation would raise demand pressures and crowd-out the private sector. In the medium term, the negative impact on competitiveness resulting from "Dutch Disease" effects could be small, provided public spending increases the stock of productive public capital. These findings highlight the role of different policy responses, and their interaction, for the macroeconomic impact of oil proceeds.

Author : The World Bank
Publisher : World Bank Publications
Page : 370 pages
File Size : 46,7 Mb
Release : 2011-09-21
Category : Business & Economics
ISBN : 9780821388563

Get Book

Financial Access and Stability by The World Bank Pdf

The countries of the Middle East and North Africa (MENA) have been recovering from the global financial crisis, but the recent political turmoil has interrupted the pace of credit and output recovery in many countries. The political turmoil in the MENA region reveals deep-seated frustrations and a sense of political, social, and economic exclusion, especially among the youth. The relatively weak growth performance reflects a combination of insufficient reforms and weak reform implementation, including financial sector reforms. The structural weaknesses of financial sectors imply that access to finance may remain restricted even with a full recovery of credit activity. Therefore, the region s countries face an ambitious reform agenda to revert two decades of relatively poor performance of output and employment growth. Financial development should be a central component of the region s growth agenda. This study reviews the region s financial systems, the severity of the limitations on access to finance, and the main factors behind such limitations. It goes on to provide a road map for expanding access and preserving financial stability.

Author : The World Bank
Publisher : World Bank Publications
Page : 208 pages
File Size : 44,5 Mb
Release : 2015-08-31
Category : Business & Economics
ISBN : 9781464804717

Get Book

Global Financial Development Report 2015/2016 by The World Bank Pdf

Global Financial Development Report 2015/2016 focuses on the ability of financial systems to sustainably extend the maturity of financial contracts for private agents. The challenges of extending the maturity structure of finance are often considered to be at the core of effective, sustainable financial development. Sustainably extending long-term finance may contribute to the objectives of higher growth and welfare, shared prosperity and stability in two ways: by reducing rollover risks for borrowers, thereby lengthening the horizon of investments; and by increasing the availability of long-term financial instruments, thereby allowing households to address their lifecycle challenges. The aim of the report is to contribute to the global policy debate on long-term finance. It builds upon findings from recent and ongoing research, lessons from operational work, as well as on inputs from financial sector professionals and researchers both within and outside the World Bank Group. Benefitting from new worldwide datasets and information on financial development, it will provide a broad and balanced review of the evidence and distill pragmatic lessons on long-term finance and related policies. This report, the third in the Global Financial Development Report series, follows the second issue on Financial Inclusion and the inaugural issue, Rethinking the Role of the State in Finance. The Global Financial Development Report 2015/2016 will be accompanied by a website worldbank.org/financialdevelopment containing extensive datasets, research papers, and other background materials as well as interactive features.

Author : Roberto Rezende Rocha,Dimitri Vittas,Heinz P. Rudolph
Publisher : World Bank Publications
Page : 376 pages
File Size : 48,6 Mb
Release : 2011
Category : Business & Economics
ISBN : 9780821385746

Get Book

Annuities and Other Retirement Products by Roberto Rezende Rocha,Dimitri Vittas,Heinz P. Rudolph Pdf

In the 1990s many emerging economies in Central Europe and Latin America initiated their pension reforms. While most analysis to date has focused on the accumulation phase, there are a number of lessons to be shared as countries start to prepare the retirement options for their contributors, with this book addressing these issues from a public policy perspective.

Author : K. Koedijk,A. Slager
Publisher : Springer
Page : 187 pages
File Size : 43,6 Mb
Release : 2010-12-08
Category : Business & Economics
ISBN : 9780230307575

Get Book

Investment Beliefs by K. Koedijk,A. Slager Pdf

Having the right investment beliefs and putting them into practice is key to delivering the right results. Decision makers in the investment industry should worry less about the stocks and products they pick for their clients and more about getting the big picture right; developing investment beliefs are instrumental in making the right choices.

Author : Michael Orszag, John Evans, John Piggott
Publisher : Edward Elgar Publishing
Page : 284 pages
File Size : 42,7 Mb
Release : 2008-06-30
Category : Business & Economics
ISBN : 9781781007662

Get Book

Pension fund governance by Michael Orszag, John Evans, John Piggott Pdf

'This collection of essays on a rapidly developing topic is a valuable addition to the field and the editors must be congratulated on beginning to bring the area to the attention of thinkers and government (not necessarily the same thing), who are charged with dealing with the challenge of controlling private pension provision.' - Robin Ellison, Pensions

Author : David Hess,Gregorio Impavido
Publisher : World Bank Publications
Page : 40 pages
File Size : 44,5 Mb
Release : 2003
Category : Corporate governance
ISBN : 8210379456XXX

Get Book

Governance of Public Pension Funds by David Hess,Gregorio Impavido Pdf

An understanding of corporate governance theory can promote the adoption of appropriate governance tools to limit agency problems in public pension fund management. The absence of a market for corporate control hinders the translation of lessons from the private sector corporate world to public pension governance. The establishment of a fit, and proper governing body for public pension funds, thus may be even more important than the maintenance of a comparable body for private sector corporations. In particular, behavioral controls should be carefully designed.

Author : OECD
Publisher : OECD Publishing
Page : 240 pages
File Size : 54,5 Mb
Release : 2013-12-06
Category : Electronic
ISBN : 9789264202276

Get Book

OECD Investment Policy Reviews: Jordan 2013 by OECD Pdf

This report presents the results of OECD's comprehensive review of Jordan's investment policy.