Recomendaciones para la modificación del régimen de pensiones obligatorias de Colombia

Alejandro Reveiz, Carlos León, Juan Mario Laserna () and Ivonne Martínez ()

Revista ESPE - Ensayos sobre Política Económica, 2008, vol. 26, issue 56, No 56, 78-113

Abstract: This essay evaluates the regulation related with Colombian Compulsory Pension Funds’ (FPO) portfolio management. Based on authors’ previous research and the analysis herein presented, it is concluded that applicable FPO’s regime requires certain modifications. Main modifications would consist of: i) easing FPO’s investments regime, since it limits managers’ ability to reach superior risk return combinations with greater diversification benefits; ii) to adopt a multifund scheme, which would allow managers to offer portfolios that replicate beneficiary’s risk profile, and iii) to reform manager’s minimum required return and remuneration mechanisms, insofar they foster inefficient investment strategies. The authors consider these modifications key in order to align beneficiary’s and administrators’ economic incentives, resulting in a more efficient pension system.

Keywords: Pension Funds Regulation; Efficient Frontiers; Multifunds; Benchmark (search for similar items in EconPapers)
JEL-codes: G11 G18 G23 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://doi.org/10.32468/Espe.5603

Related works:
Journal Article: Recomendaciones para la modificación del régimen de pensiones obligatorias de Colombia (2008)
Working Paper: Recomendaciones para la modificación del régimen de pensiones obligatorias de Colombia (2008)
Working Paper: Recomendaciones para la modificación del régimen de pensiones obligatorias de Colombia (2008)
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