Pension versus Participating Funds

Penzijní versus účastnické fondy

Petr Musílek

Český finanční a účetní časopis, 2012, vol. 2012, issue 3, 6-17

Abstract: The aim of this paper is not only to explain the role of pension funds on the global capital markets, but also to evaluate how effectively the pension funds manage entrusted retirement savings. Owing to population ageing and the debt problems of the most developed countries, as well as maturing of existing pay-as-you-go systems, there is a widespread trend in the OECD countries towards capitalized pension funds in the modern retirement system. Particular attention will be paid to the performance of pension funds in the Czech supplementary pension insurance system, which is characterized by the existence of unusual zero yield guarantee. However, the zero yield guarantee causes excessively conservative behavior of portfolio managers, which leads to negative real rates of return. The solution of institutional mistake is to eliminate the zero yield guarantee and create a new segment in the 3rd pillar in the form of participating funds.

Keywords: Pension funds; Pension funds performance; Supplementary pension insurance; Zero yield guarantee; Participating funds; Penzijní fondy; Výkonnost penzijních fondů; Garance nulového výnosu; Účastnické fondy (search for similar items in EconPapers)
JEL-codes: G23 (search for similar items in EconPapers)
Date: 2012
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://cfuc.vse.cz/doi/10.18267/j.cfuc.14.html (text/html)
http://cfuc.vse.cz/doi/10.18267/j.cfuc.14.pdf (application/pdf)
free of charge

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:prg:jnlcfu:v:2012:y:2012:i:3:id:14:p:6-17

Ordering information: This journal article can be ordered from
Český finanční a účetní časopis, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://cfuc.vse.cz

DOI: 10.18267/j.cfuc.14

Access Statistics for this article

Český finanční a účetní časopis is currently edited by Karel Brůna

More articles in Český finanční a účetní časopis from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().