| Title: | Are excessive legislative restrictions of pension fundʼs investments required to ensure these fundsʼ operational stability and minimum guaranted return? |
|---|
| Authors: | ID Markovič-Hribernik, Tanja (Author)
ID Jakopanec, Igor (Author) |
|---|
| Files: |  Analele_Universităţii_Constantin_Brâncuşi_din_Târgu_Jiu_Seria_Economie_2013_Markovic-Hribernik,_Jakopanec_Are_excessive_legislative.pdf (871,43 KB)
MD5: 3263B7AA7546C7A293F0D20C7FC34A30
PID: 20.500.12556/dkum/4eb7f14a-1c4a-42b3-9a03-5dab942f7fdd
 http://www.utgjiu.ro/revista/ec/pdf/2013-01/5_Tanja Markovic Hribernik.pdf
|
|---|
| Language: | English |
|---|
| Work type: | Scientific work |
|---|
| Typology: | 1.01 - Original Scientific Article |
|---|
| Organization: | EPF - Faculty of Business and Economics
|
|---|
| Abstract: | In this paper, it is investigated whether government, when promises pension fundʼs members a so-called minimum guaranteed return, to reduce the exposure of members to financial risks , should at the same time hinders portfolio diversification process of pension funds. We provide a detailed analysis of the connection between the requirements for providing a minimum guaranteed return and managing financial risks on the one hand and the investment structure of pension funds on the other. We intend to demonstrate with an illustrative case, using the simulation technique and a combination of actual data and some hypothetical one, that by precisely matching the investments' characteristics to the characteristics of the pension fund's liabilities, some important financial risks can even be hedged entirely. We also intend to demonstrate that with the implementation of a proper policy of risk measurement and management, complemented with stress testing practices, excessive legislative restrictions for investments are no longer necessary. At the very least, governments should avoid implementing legislation that hinders the portfolio diversification process and therefore makes pension fund risk management more difficult. |
|---|
| Keywords: | pension funds, financial risks, minimum guaranteed return, asset-liability management |
|---|
| Publication status: | Published |
|---|
| Publication version: | Version of Record |
|---|
| Year of publishing: | 2013 |
|---|
| Number of pages: | str. 38-51 |
|---|
| Numbering: | 2013, št. 1 |
|---|
| PID: | 20.500.12556/DKUM-66743  |
|---|
| ISSN: | 1844-7007 |
|---|
| UDC: | 336.763.268 |
|---|
| ISSN on article: | 1844-7007 |
|---|
| COBISS.SI-ID: | 11387420 |
|---|
| NUK URN: | URN:SI:UM:DK:IHAYZFNG |
|---|
| Publication date in DKUM: | 07.07.2017 |
|---|
| Views: | 1115 |
|---|
| Downloads: | 110 |
|---|
| Metadata: |    |
|---|
| Categories: | Misc.
|
|---|
|
:
|
Copy citation |
|---|
| | | | Average score: | (0 votes) |
|---|
| Your score: | Voting is allowed only for logged in users. |
|---|
| Share: |  |
|---|
Hover the mouse pointer over a document title to show the abstract or click
on the title to get all document metadata. |
