Voluntary Private Pension Funds and Capital Market Development in Turkey

2020 ◽  
Author(s):  
Asli Togan Egrican ◽  
Fatih Kayhan
Keyword(s):  
Capital Market ◽  
Pension Funds ◽  
Private Pension ◽  
Market Development

scholarly journals PORTFOLIO AND BENCHMARK RETURNS OF PRIVATE PENSION FUNDS: A COMPARATIVE ANALYSIS FOR TURKEY

2020 ◽  
Vol 8 (5) ◽  
pp. 3891-3910
Author(s):  
Fatih KAYHAN ◽  
Mehmet İSLAMOĞLU ◽  
Mehmet APAN
Keyword(s):  
Capital Market ◽  
Pension Fund ◽  
Pension System ◽  
Pension Funds ◽  
Private Pension ◽  
Regulatory Structure ◽  
Portfolio Returns ◽  
Pension Fund Management ◽  
Portfolio Structure

The purpose of this study is to ascertain whether pension fund returns are in line with benchmark returns taking into account the regulatory structure in Turkey. The methodology of the study is the cumulative portfolio returns. Data is retrieved from TEFAS Platform and official web site of Capital Market Board of Turkey. Portfolio and benchmark of pension funds are compared. Only standard pension funds are covered within the scope of voluntary pension funds of Turkey. Findings are as follows; Portfolio returns and benchmark returns are in line significantly. The results are partly attributable to the regulations about pension fund management and portfolio structure. The paper also shows that in the long term, the volatility of returns decreases and returns prove to conform with the primary purpose of the private pension system.                            

scholarly journals ESTIMATION OF ASSET ACCUMULATION OF THE PROPOSED SLOVENIAN, MANDATORY-FUNDED PENSION PILLAR

2001 ◽  
Vol 51 (4) ◽  
pp. 513-539
Author(s):  
T. KERLJ ◽  
G. DOLINAR ◽  
D. MRAMOR
Keyword(s):  
Capital Market ◽  
Pension Funds ◽  
Market Development ◽  
Pension Scheme ◽  
Asset Accumulation ◽  
Independent Variables ◽  
Time Period ◽  
Future Time Period ◽  
Dynamic Simulation Model ◽  
The Impact

This paper analyses the impact of the introduction of a proposed mandatory earnings-related fully-funded pension scheme, named as the second pillar, on the accumulation of pension-funds assets and possibly on the capital market development in Slovenia. First, the dynamic simulation model is developed to estimate the accumulated pension-funds assets as a percentage of GDP in each future time period under the assumption of certainty. It is followed by the assumptions and estimates of the data used for independent variables and the results obtained by implementing the model for the period of 25 years. Relaxing the assumption of certainty, the paper proceeds with estimations of accuracy of the results with three methods. It is concluded, that the estimated level of accumulated pension-funds assets in GDP 25 years after the introduction of the reform will be approximately 40% and comparable to the level in countries with developed capital markets. Also, the accuracy of the estimate is surprisingly good. It is therefore expected that besides other effects, the introduction of this pension scheme would have an important impact on the development of the Slovenian capital market.

scholarly journals Private pension funds: passivity at active fund prices

2017 ◽  
Vol 29 (76) ◽  
pp. 148-163 ◽  
Author(s):  
Carlos Heitor Campani ◽  
Leonardo Mesquita de Brito
Keyword(s):  
Pension Funds ◽  
Private Pension ◽  
Active Management ◽  
Style Analysis ◽  
Market Segment ◽  
Management Fees ◽  
The United Kingdom ◽  
Asset Classes ◽  
The Government ◽  
Filter Analysis

ABSTRACT From 2005 to 2015, the total assets managed by open private pension funds increased more than six times in Brazil, where the Free Benefit Generating Plan (PGBL) and the Free Benefit Generating Life (VGBL) represent 90% of these assets. However, private pension institutions are characterized by the collection of high management fees, thus keeping for themselves much of the benefits offered by the government as incentive for investment in this modality. High management fees are justified only when there is active management of these funds, theoretically generating higher performance: this study indicates that this is not the case in this market segment. Similar problems have been faced in other countries, such as the United Kingdom, Denmark, and Sweden, which filed investigation concerning funds that charge high management fees for active management, while they actually provide management that may be regarded as passive. This demonstrates the scale and relevance of this issue, which has been surveyed and addressed by this study. To do this, dynamic style analysis was performed, through rolling regressions, followed by Kalman filter analysis in funds from the top-five private pension institutions in Brazil. Analyzing the exposure evolution of these funds to various asset classes and the R2 generated, passivity traces were found, mainly in composite variable income funds. Such funds are precisely those that should be more actively managed, as they charge the highest management fees. This article also demonstrates it is possible to build a passive portfolio, having a very similar style and returns without statistically significant differences, but at a lower management fee (and aligned with passive funds).

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