Click here for search results
Upgrading investment regulations in second pillar pension systems : a proposal for Colombia, Volume 1
 
Author:Castaneda, Pablo; Rudolph, Heinz P.; Country:Colombia;
Date Stored:2011/08/23Document Date:2011/08/01
Document Type:Policy Research Working PaperSubTopics:Financial Literacy; Emerging Markets; Debt Markets; Mutual Funds; Investment and Investment Climate
Language:EnglishRegion:Latin America & Caribbean
Report Number:WPS5775Collection Title:Policy Research working paper ; no. WPS 5775
Volume No:1  

Summary: The passivity of the demand for pension products is one of the striking features of mandatory pension systems. Consequently, the provision of multiple investment alternatives to households (multifund schemes) does not ensure that contributions are invested efficiently. In addition, despite the theoretical findings that short term return maximization is not conductive to long-term return maximization, the regulatory framework of pension fund management companies puts excessive emphasis on short-term maximization. Therefore, it is not obvious that typical regulatory framework of pension funds is conductive to optimal pensions. By establishing a set of default options on investment portfolios, this paper proposes a mechanism to align the incentives of the pension fund management companies with the long-term objectives of the contributors. The paper provides a methodology, which is subsequently applied to Colombia.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 52 pagesOfficial version*3.64 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/80QE7N09O0