Pension Reform, Investment Restrictions and Capital Markets

Jorge Roldos

No 2004/004, IMF Policy Discussion Papers from International Monetary Fund

Abstract: Pension reform in several emerging market countries has been associated with rapid growth in assets under management and a positive impact on the development of local securities markets. However, limitations on such development may lead to asset price distortions, bubbles, and concentration of risks. Regulatory limits on pension fund investments are assessed in light of these risks and developments in modern portfolio theory. A gradual but decisive loosening of restrictions on equity and foreign investments is recommended. Changes in these regulations ought to be coordinated with measures designed to foster the development of local securities markets as well as with macroeconomic policies.

Keywords: PDP; emerging market; market; asset; portfolio; bond market; capital market; Pension fund regulation; asset allocation; capital market development; institutional investor; pension funds; market participant; a number of emerging market economies; portfolio restriction; Pension spending; Emerging and frontier financial markets; Securities markets; Stock markets; Stocks; Global (search for similar items in EconPapers)
Pages: 32
Date: 2004-09-01
References: Add references at CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=17662 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfpdp:2004/004

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Policy Discussion Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().