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The purpose of this paper is to examine the change in pension fund board diversity after self-regulation was introduced, and investigate which pension fund characteristics influence compliance with self-regulation. In addition, the authors analyze whether compliance might be achieved by tokenism.

The authors hand-collect pension fund and pension fund board data of the largest (by assets) 200 pension funds in the Netherlands. The authors compare descriptive statistics on board diversity, perform statistical tests on these, and perform non-linear regression techniques to investigate which pension fund characteristics influence compliance.

The findings are fourfold. First, over the past three years, pension fund boards have only marginally improved on gender and age diversity. In April 2014, still more than 35 percent of the funds had no women on the board, and an overwhelming 60 percent had no members below 40 years of age. This indicates that self-regulation in the pension fund industry so far has not been effective for the industry as a whole. Second, the authors find that pension funds that have larger boards are more likely to have at least one woman on the board or at least one member below 40 years of age. Third, boards of pension funds with more assets are less likely to have young board members. Fourth, boards with at least one female have a higher probability of also having at least one member below 40 years, which is suggestive of tokenism.

Based on Hirschman’s (1970) theory of voice and exit, the authors expect that pension fund boards would be more diverse than corporate boards. However, the authors find that this is not the case. Second, given the importance of generational value transfers in pension fund policy decisions, the authors expect that age is a more important diversity characteristic than gender for pension fund boards in the Netherlands. Again, the data does not support this prediction.

Consistent with the literature on diversity in corporate boards, the authors find that diverse boards are on average larger. This suggests that, all other things equal, small boards might want to reconsider whether increasing their size would lead to more diversity and hence to more voice for participants that cannot exit the pension scheme. If larger funds hesitate to include young members because of their lack of relevant skills, then the authors would recommend setting up a platform to educate young candidates and prepare them for board membership. Forced independent auditor verification, as in the UK, might be a fruitful action the regulator could enforce on pension funds going forward. However, if that also does not lead to a significant improvement, compulsory diversity quota might be the only option left for policy makers.

This paper contributes to the literature in at least three ways. First, the authors analyze whether self-regulation on diversity in pension fund boards has been effective. Second, the authors determine which pension fund characteristics are associated with more board diversity. Third, the authors shed light on tokenism in pension fund board composition: Diversity might be obtained through installing diversity tokens, which are individuals who have multiple diversity characteristics.

The purpose of this paper is to investigate the main predictors of university students’ intention to invest in a pension fund: an understanding of how young people perceive retirement planning is relevant for its policy implications.

The authors apply the theory of planned behaviour (TPB) proposed by Ajzen (1985) which explains how human behaviour is guided, and provides a framework to explore the underlying beliefs that affect one’s behaviours.

The evidence on a sample of Italian university students highlights that the TPB predictors, pension knowledge, money management and the highest level of financial literacy, positively influence their intention to invest in a pension fund.

Although the authors are aware of the limitations of the analysis (limited to a specific country and to a specific financial product), the authors believe that the study has the merit of offering a number of ideas for further research. In fact, there are few contributions in the literature that identify the intention of young people to save for retirement. The study sheds light on this important issue. However, because it is limited to Italian university students, its findings cannot be generalised.

The study can be used by regulators, financial educators, counsellors and public institutions to increase the propensity of young people to plan for their future and guide them towards attitudes and behaviours most likely to increase their savings for retirement.

The evidence suggests that regulators, institutions and educators should improve the information that is provided to families first and to the younger generations – at school, for instance – about the functioning of the pension system. The survey’s findings emphasise that university students are generally unaware of the many reforms to the system while believing that their state pensions will be sufficient to maintain a retirement standard of living that is the same as the standard of living achieved during their working lives.

In the authors’ knowledge, there are not studies that focus on the youngs’ intention to invest in a pension fund. The authors believe that millennials are the most hitted by the Fornero’s reform and understand which predictors affect this intention can allow to drive the decision in investing in these important financial tools.

This paper surveys the social security system in several Latin American countries. Specifically, the cases of Bolivia and Brazil are documented in order to determine if the Chilean model is a viable one in the Latin America and Caribbean region. An institutional approach suggests that while there has been a marked interest in tailoring pension funds a la Chile, policy makers of the region must be aware of the similarities and differences in the politico‐social‐economic environment. The macroeconomic transformation undertaken in Chile was a unique one obeying to specific conditions of time and process. It is indicated, however, that even in the case of developed nations, some features of the Chilean model may be very appealing as well.

Pension funds are rapidly acquiring voting control of UK quoted companies. Who, if anybody, should have the legal right to use the votes attached to pension fund shareholdings — pension fund managers, employees, employee representatives, members of the TUC, members of the Government, civil servants, or perhaps members of a stakeholders' council? This article sketches a few scenarios.

This paper aims to investigate private pension fund investor sentiment against fund performance and cost in an environment of frequent regulatory changes. The analyses are conducted in a low return, high-cost private pension fund market environment, which makes it easier to observe the relationship between investor sentiment to return and cost.

This paper conducts fixed effect, random effect and random effect within between effect panel data analyses of all Turkish private pension funds from 2011 to 2019. This paper conducts the analyses using aggregate data and subsets based on fund characteristics and pre-post regulation periods.

When regulations provide compensation and improve market efficiency in a pension fund market, investor focus shifted from performance to cost. Investors allocated assets with respect to return realization when adequately compensated for risk or had favorable cost contract clauses. Consequently, investors in pension funds with lower expected returns and no special fee reduction clauses tended to adopt the strategy of cost minimization.

The overlap of regulatory change periods could complicate the ability to distinguish the impact of any one specific change. The findings therefore cannot be generalized to differently structured markets.

Regulatory changes could lead to a switch of investor objectives. When regulatory changes compensate investors and increase market efficiency, investors objective could switch from performance to cost.

This study investigates investor sentiment in a relatively young private pension fund market, in which the relevant regulatory body ambitiously implements frequent changes in regulation. The selected market is unique in the sense that it has negative real returns and high costs, which make investor focus to return and cost more readily apparent.

The Changing Pattern of Share Ownership. As indicated elsewhere in these pages, one of the most important economic developments of recent years has been the changing pattern of share ownership in UK quoted companies. Ownership of equities gives the holder the legal right to vote at company annual general meetings on such matters as the appointment and removal of directors. When a group of investors owns enough shares to control the board of directors then that group can clearly exert a powerful influence over managerial decision‐making. This is now the case in the United Kingdom with respect to a major group of investors. The combined equity holdings of institutional investors — pension funds, insurance companies, investment trust companies and unit trusts — amounted to 51 per cent of all UK quoted equities at the end of 1980. These financial institutions thus controlled more than half the voting power in British industrial and commercial enterprises, and they continue to acquire a further two per cent of all UK quoted equities each year. This gives considerable power to institutional portfolio managers. It could be suggested that this power, particularly in the case of pension funds which form the largest and fastest growing sector, should be vested in those who contribute the savings which finance the growth of institutional equity holdings, that is employees or their elected representatives.

The asset allocation decision for a pension portfolio needs to consider several, sometimes conflicting, aspects. Most pension managers use models and processes that are developed for the traditional asset classes for analyzing this problem. The purpose of this paper is to investigate how real estate is included in this process, for what purpose and how the real estate portfolio is constructed.

Seven individuals responsible for the asset allocation process were interviewed, and their responses were analyzed with regards to organizational options and their real estate strategy.

It was found that real estate is held for three different purposes, risk diversification, inflation hedging/liability matching and return enhancement and that the allocation has increased over time. The allocation strategy has evolved at least in part in conjuncture with the organizational structure set in place to overcome real estate market frictions.

The interviews were geographically limited to pension funds domiciled in Sweden and Finland.

It is concluded that the organizational capabilities of the pension fund of handling real estate is an important consideration for the ensuing real estate portfolio.

The originality of this paper lies in that it is based on interviews with individuals who are responsible for the asset allocation decision at large pension funds. The findings of the paper identify areas of interest for future research.

This paper analyses whether the active management and the fundamentals of the pension fund allow products that beat their peers to be identified in terms of risk-adjusted performance.

The sample is composed of all the pension funds active in the period 2000 to 2017 investing in the Eurozone. What this means is that a greater similarity is guaranteed in terms of benchmark, assets available for investment and currency. All the data have been retrieved from the Morningstar Direct database.

The paper reveals that the degree of concentration and value for money are important determinants of performance. In this sense, the strategies of investing in concentrated portfolios that differ from the benchmark and with undervalued assets in terms of price earnings ratio (PER)-return on assets (ROA) achieve better results.

This is one of the few papers that shows the effect of active management and value investing strategies’ on the performance of pension funds.

本文旨在分析、我們能否根據退休基金的積極管理及其基本原理, 找到就風險調整表現而言之最優勝產品.

我們的樣本包括於2000年至2017年期間活躍於歐元區內投資活動的所有退休基金。這意味著、樣本確保了相關之退休基金就基準、可供投資的資產及貨幣而言、均擁有較大的相似性。所有數據均從晨星基金資料庫檢索得來的。.

本文顯示、集中程度和價值比率是決定表現的重要因素。在這個意義上說，如投資在與基準不同的及附有就本益比 – 資產收益率 (PER - ROA) 而言被低估的資產的那些集中投資組合上, 這會是效果較佳的策略.

探討積極管理和價值投資策略如何影響退休基金表現的學術研究為數不多, 本文乃屬這類研究。.

This paper aims to investigate whether idiosyncratic volatility is priced in returns of equity funds while controlling for fund size and return momentum.

Following Fama and French (1993), an idiosyncratic volatility mimicking factor and a fund-size factor are constructed. The pricing ability of this idiosyncratic volatility mimicking factor is investigated in the context of Carhart (1997).

Idiosyncratic volatility is an important pricing factor even when controlling for fund size and momentum. In addition, idiosyncratic volatility is strongly and positively associated with the momentum effect. Further, when controlling for the association between the momentum effect and idiosyncratic volatility, the explanatory power of the momentum factor almost disappears, which suggests the pricing of idiosyncratic volatility mediates momentum and returns.

These findings imply that both the idiosyncratic volatility factor and the fund-size factor should not be ignored by fund managers when evaluating the performance of the equity funds.