Composition of Pension Funds' Investment Portfolio and its Impact on Profit
Composition of Pension Funds' Investment Portfolio and its Impact on Profit

Author(s): Mário Papík
Subject(s): National Economy, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: pension funds; assets; composition of assets; financial revenues;
Summary/Abstract: In 2004, pension reform with fundamental influence on the function of the pension system was implemented in Slovakia. After the pension system reform, each Slovak citizen can save their money in pension funds. Since January 2013, pension fund management companies have had to establish at least two pension funds, one guaranteed bond fund and at least one unguaranteed equity fund. Nowadays, pension funds own a wide range of assets. The aim of this article is to monitor the composition of financial assets and relation between pension funds’ profit and components of financial assets they own. This relation will be described by linear regression model which aims to determine significant variables affecting the profit of these funds. The underlying model data will be chosen from balance sheet and income statements of Slovakia-based pension funds, managed by six pension fund management companies, from the time period 2009 to 2014. The results of this research contribute to a better understanding of the importance of certain types of financial assets owned by pension funds, and thus help improve the legislative management of pension funds in Slovakia and their impact on macroeconomics.

• Details
• Contents