Upgrading Investment Regulations in Second Pillar Pension Systems : A Proposal for Colombia
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...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110823090344 http://hdl.handle.net/10986/3537 |
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okr-10986-3537 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET PORTFOLIO ASSET PRICE ASSET PRICES BANK DEPOSITS BANKING CRISES BENEFICIARIES BOND INSTRUMENTS BOND YIELD BOND YIELD CURVE BROKERAGE CAPITAL FLOWS CAPITAL MARKET CAPITALIZATION CIVIL CODE CIVIL CODES COMMON LAW COMPETITIVE FRAMEWORKS COMPETITIVE MARKETS CONFLICTS OF INTEREST CONFLICTS OF INTERESTS CONSUMPTION SMOOTHING CORPORATE BOND CREDIT RISK CURRENCY RISK DECLINE IN INVESTMENTS DEPOSITS DERIVATIVES DEVELOPING COUNTRIES DIVERSIFIED PORTFOLIO DIVERSIFIED PORTFOLIOS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC EQUITIES ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKETS EQUITIES EQUITY INDEX EQUITY INSTRUMENTS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY RETURNS EQUITY VALUE EXCHANGE RATE FAIR VALUATION FIDUCIARY RESPONSIBILITY FINANCIAL ASSETS FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTIONS FINANCIAL MARKETS FIXED INCOME FIXED INCOME MARKETS FIXED INCOME PORTFOLIO FOREIGN CURRENCY FOREIGN EQUITIES FOREIGN EQUITY FREE ASSET FREE ASSETS FUND MANAGEMENT FUND MANAGER FUND MANAGERS FUTURES FUTURES MARKET FUTURES MARKETS GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL MARKETS GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT SECURITIES HEDGES HIGH YIELD BONDS HOLDING HUMAN CAPITAL ILLIQUID MARKETS INCOME INSTRUMENTS INCOME LEVEL INDEXED BOND INDEXED BONDS INDIVIDUAL INVESTOR INFLATION INFLATION RISKS INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANY INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DIVERSIFICATION INTERNATIONAL MARKET INTERNATIONAL MARKETS INVESTING INVESTMENT ALTERNATIVES INVESTMENT DECISION INVESTMENT DECISIONS INVESTMENT FUND INVESTMENT GUIDELINES INVESTMENT HORIZON INVESTMENT HORIZONS INVESTMENT IN STOCKS INVESTMENT OPPORTUNITIES INVESTMENT OPPORTUNITY INVESTMENT POLICY INVESTMENT PORTFOLIO INVESTMENT PORTFOLIOS INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT RESTRICTIONS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTMENTS IN EQUITIES ISSUANCE JUDICIAL COURTS LIABILITY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIQUID ASSETS LIQUIDATION LIQUIDITY LIQUIDITY PREMIUM LIQUIDITY RATIO LIQUIDITY RISK LOCAL INVESTORS LOCAL MARKET LOCAL MARKETS LONG-TERM INTEREST LONG-TERM INTEREST RATES LONG-TERM INVESTMENT LONG-TERM INVESTOR LONG-TERM INVESTORS MANDATORY PENSION FUND MARKET COMPETITION MARKET CONDITIONS MARKET DEVELOPMENT MARKET INDICES MARKET PLAYERS MARKET RISK MARKET RISKS MARKET SHARE MARKET STRUCTURE MINORITY SHAREHOLDERS MORTGAGE MORTGAGE BONDS MUTUAL FUNDS OPTIMAL INVESTMENT OPTIONS MARKET PENSION PENSION FUND PENSION FUND INVESTMENT PENSION FUND INVESTMENTS PENSION FUNDS PENSION REFORMS PENSION SYSTEM PENSION SYSTEMS PENSIONS PORTFOLIO PORTFOLIO ALLOCATIONS PORTFOLIO INVESTMENT PORTFOLIO MANAGEMENT PORTFOLIO QUALITY PORTFOLIO RISK PUBLIC DEBT PUBLIC FUNDS PURCHASING POWER RATES OF RETURN REAL INTEREST REAL INTEREST RATES REGULATORY AUTHORITY REGULATORY FRAMEWORK REINVESTMENT REINVESTMENT RISK REINVESTMENT RISKS RESERVE RETURN RETURN ON ASSETS RETURNS RISK AVERSION RISK MANAGEMENT RISK PROFILE RISK PROFILES RISKY ASSET RISKY ASSETS SECURITIES SECURITIES MARKETS SHAREHOLDER SHAREHOLDERS SHORT-TERM ASSET SHORT-TERM ASSETS SHORT-TERM BOND SHORT-TERM CAPITAL SHORT-TERM INSTRUMENTS SHORT-TERM TREASURY BILL SHORT-TERM TREASURY BILLS SINGLE ASSET SOVEREIGN BONDS SOVEREIGN DEBT SOVEREIGN DEFAULT STOCK MARKET STOCK RETURN STOCK RETURNS STOCKS SUPERVISORY AUTHORITY TAX TRADING TRANSACTION TRANSPARENCY TREASURY UNDERDEVELOPED CAPITAL MARKETS UNDERLYING ASSET VALUATION |
| spellingShingle |
ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET PORTFOLIO ASSET PRICE ASSET PRICES BANK DEPOSITS BANKING CRISES BENEFICIARIES BOND INSTRUMENTS BOND YIELD BOND YIELD CURVE BROKERAGE CAPITAL FLOWS CAPITAL MARKET CAPITALIZATION CIVIL CODE CIVIL CODES COMMON LAW COMPETITIVE FRAMEWORKS COMPETITIVE MARKETS CONFLICTS OF INTEREST CONFLICTS OF INTERESTS CONSUMPTION SMOOTHING CORPORATE BOND CREDIT RISK CURRENCY RISK DECLINE IN INVESTMENTS DEPOSITS DERIVATIVES DEVELOPING COUNTRIES DIVERSIFIED PORTFOLIO DIVERSIFIED PORTFOLIOS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC EQUITIES ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKETS EQUITIES EQUITY INDEX EQUITY INSTRUMENTS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY RETURNS EQUITY VALUE EXCHANGE RATE FAIR VALUATION FIDUCIARY RESPONSIBILITY FINANCIAL ASSETS FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTIONS FINANCIAL MARKETS FIXED INCOME FIXED INCOME MARKETS FIXED INCOME PORTFOLIO FOREIGN CURRENCY FOREIGN EQUITIES FOREIGN EQUITY FREE ASSET FREE ASSETS FUND MANAGEMENT FUND MANAGER FUND MANAGERS FUTURES FUTURES MARKET FUTURES MARKETS GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL MARKETS GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT SECURITIES HEDGES HIGH YIELD BONDS HOLDING HUMAN CAPITAL ILLIQUID MARKETS INCOME INSTRUMENTS INCOME LEVEL INDEXED BOND INDEXED BONDS INDIVIDUAL INVESTOR INFLATION INFLATION RISKS INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANY INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DIVERSIFICATION INTERNATIONAL MARKET INTERNATIONAL MARKETS INVESTING INVESTMENT ALTERNATIVES INVESTMENT DECISION INVESTMENT DECISIONS INVESTMENT FUND INVESTMENT GUIDELINES INVESTMENT HORIZON INVESTMENT HORIZONS INVESTMENT IN STOCKS INVESTMENT OPPORTUNITIES INVESTMENT OPPORTUNITY INVESTMENT POLICY INVESTMENT PORTFOLIO INVESTMENT PORTFOLIOS INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT RESTRICTIONS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTMENTS IN EQUITIES ISSUANCE JUDICIAL COURTS LIABILITY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIQUID ASSETS LIQUIDATION LIQUIDITY LIQUIDITY PREMIUM LIQUIDITY RATIO LIQUIDITY RISK LOCAL INVESTORS LOCAL MARKET LOCAL MARKETS LONG-TERM INTEREST LONG-TERM INTEREST RATES LONG-TERM INVESTMENT LONG-TERM INVESTOR LONG-TERM INVESTORS MANDATORY PENSION FUND MARKET COMPETITION MARKET CONDITIONS MARKET DEVELOPMENT MARKET INDICES MARKET PLAYERS MARKET RISK MARKET RISKS MARKET SHARE MARKET STRUCTURE MINORITY SHAREHOLDERS MORTGAGE MORTGAGE BONDS MUTUAL FUNDS OPTIMAL INVESTMENT OPTIONS MARKET PENSION PENSION FUND PENSION FUND INVESTMENT PENSION FUND INVESTMENTS PENSION FUNDS PENSION REFORMS PENSION SYSTEM PENSION SYSTEMS PENSIONS PORTFOLIO PORTFOLIO ALLOCATIONS PORTFOLIO INVESTMENT PORTFOLIO MANAGEMENT PORTFOLIO QUALITY PORTFOLIO RISK PUBLIC DEBT PUBLIC FUNDS PURCHASING POWER RATES OF RETURN REAL INTEREST REAL INTEREST RATES REGULATORY AUTHORITY REGULATORY FRAMEWORK REINVESTMENT REINVESTMENT RISK REINVESTMENT RISKS RESERVE RETURN RETURN ON ASSETS RETURNS RISK AVERSION RISK MANAGEMENT RISK PROFILE RISK PROFILES RISKY ASSET RISKY ASSETS SECURITIES SECURITIES MARKETS SHAREHOLDER SHAREHOLDERS SHORT-TERM ASSET SHORT-TERM ASSETS SHORT-TERM BOND SHORT-TERM CAPITAL SHORT-TERM INSTRUMENTS SHORT-TERM TREASURY BILL SHORT-TERM TREASURY BILLS SINGLE ASSET SOVEREIGN BONDS SOVEREIGN DEBT SOVEREIGN DEFAULT STOCK MARKET STOCK RETURN STOCK RETURNS STOCKS SUPERVISORY AUTHORITY TAX TRADING TRANSACTION TRANSPARENCY TREASURY UNDERDEVELOPED CAPITAL MARKETS UNDERLYING ASSET VALUATION Castaneda, Pablo Rudolph, Heinz P. Upgrading Investment Regulations in Second Pillar Pension Systems : A Proposal for Colombia |
| geographic_facet |
Latin America & Caribbean Latin America & Caribbean South America America Colombia |
| relation |
Policy Research working paper ; no. WPS 5775 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Castaneda, Pablo Rudolph, Heinz P. |
| author_facet |
Castaneda, Pablo Rudolph, Heinz P. |
| author_sort |
Castaneda, Pablo |
| title |
Upgrading Investment Regulations in Second Pillar Pension Systems : A Proposal for Colombia |
| title_short |
Upgrading Investment Regulations in Second Pillar Pension Systems : A Proposal for Colombia |
| title_full |
Upgrading Investment Regulations in Second Pillar Pension Systems : A Proposal for Colombia |
| title_fullStr |
Upgrading Investment Regulations in Second Pillar Pension Systems : A Proposal for Colombia |
| title_full_unstemmed |
Upgrading Investment Regulations in Second Pillar Pension Systems : A Proposal for Colombia |
| title_sort |
upgrading investment regulations in second pillar pension systems : a proposal for colombia |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110823090344 http://hdl.handle.net/10986/3537 |
| _version_ |
1764387162300612608 |
| spelling |
okr-10986-35372021-04-23T14:02:10Z Upgrading Investment Regulations in Second Pillar Pension Systems : A Proposal for Colombia Castaneda, Pablo Rudolph, Heinz P. ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET PORTFOLIO ASSET PRICE ASSET PRICES BANK DEPOSITS BANKING CRISES BENEFICIARIES BOND INSTRUMENTS BOND YIELD BOND YIELD CURVE BROKERAGE CAPITAL FLOWS CAPITAL MARKET CAPITALIZATION CIVIL CODE CIVIL CODES COMMON LAW COMPETITIVE FRAMEWORKS COMPETITIVE MARKETS CONFLICTS OF INTEREST CONFLICTS OF INTERESTS CONSUMPTION SMOOTHING CORPORATE BOND CREDIT RISK CURRENCY RISK DECLINE IN INVESTMENTS DEPOSITS DERIVATIVES DEVELOPING COUNTRIES DIVERSIFIED PORTFOLIO DIVERSIFIED PORTFOLIOS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC EQUITIES ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKETS EQUITIES EQUITY INDEX EQUITY INSTRUMENTS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY RETURNS EQUITY VALUE EXCHANGE RATE FAIR VALUATION FIDUCIARY RESPONSIBILITY FINANCIAL ASSETS FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTIONS FINANCIAL MARKETS FIXED INCOME FIXED INCOME MARKETS FIXED INCOME PORTFOLIO FOREIGN CURRENCY FOREIGN EQUITIES FOREIGN EQUITY FREE ASSET FREE ASSETS FUND MANAGEMENT FUND MANAGER FUND MANAGERS FUTURES FUTURES MARKET FUTURES MARKETS GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL MARKETS GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT SECURITIES HEDGES HIGH YIELD BONDS HOLDING HUMAN CAPITAL ILLIQUID MARKETS INCOME INSTRUMENTS INCOME LEVEL INDEXED BOND INDEXED BONDS INDIVIDUAL INVESTOR INFLATION INFLATION RISKS INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANY INTEREST RATE INTERNATIONAL BANK INTERNATIONAL DIVERSIFICATION INTERNATIONAL MARKET INTERNATIONAL MARKETS INVESTING INVESTMENT ALTERNATIVES INVESTMENT DECISION INVESTMENT DECISIONS INVESTMENT FUND INVESTMENT GUIDELINES INVESTMENT HORIZON INVESTMENT HORIZONS INVESTMENT IN STOCKS INVESTMENT OPPORTUNITIES INVESTMENT OPPORTUNITY INVESTMENT POLICY INVESTMENT PORTFOLIO INVESTMENT PORTFOLIOS INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT RESTRICTIONS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTMENTS IN EQUITIES ISSUANCE JUDICIAL COURTS LIABILITY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIQUID ASSETS LIQUIDATION LIQUIDITY LIQUIDITY PREMIUM LIQUIDITY RATIO LIQUIDITY RISK LOCAL INVESTORS LOCAL MARKET LOCAL MARKETS LONG-TERM INTEREST LONG-TERM INTEREST RATES LONG-TERM INVESTMENT LONG-TERM INVESTOR LONG-TERM INVESTORS MANDATORY PENSION FUND MARKET COMPETITION MARKET CONDITIONS MARKET DEVELOPMENT MARKET INDICES MARKET PLAYERS MARKET RISK MARKET RISKS MARKET SHARE MARKET STRUCTURE MINORITY SHAREHOLDERS MORTGAGE MORTGAGE BONDS MUTUAL FUNDS OPTIMAL INVESTMENT OPTIONS MARKET PENSION PENSION FUND PENSION FUND INVESTMENT PENSION FUND INVESTMENTS PENSION FUNDS PENSION REFORMS PENSION SYSTEM PENSION SYSTEMS PENSIONS PORTFOLIO PORTFOLIO ALLOCATIONS PORTFOLIO INVESTMENT PORTFOLIO MANAGEMENT PORTFOLIO QUALITY PORTFOLIO RISK PUBLIC DEBT PUBLIC FUNDS PURCHASING POWER RATES OF RETURN REAL INTEREST REAL INTEREST RATES REGULATORY AUTHORITY REGULATORY FRAMEWORK REINVESTMENT REINVESTMENT RISK REINVESTMENT RISKS RESERVE RETURN RETURN ON ASSETS RETURNS RISK AVERSION RISK MANAGEMENT RISK PROFILE RISK PROFILES RISKY ASSET RISKY ASSETS SECURITIES SECURITIES MARKETS SHAREHOLDER SHAREHOLDERS SHORT-TERM ASSET SHORT-TERM ASSETS SHORT-TERM BOND SHORT-TERM CAPITAL SHORT-TERM INSTRUMENTS SHORT-TERM TREASURY BILL SHORT-TERM TREASURY BILLS SINGLE ASSET SOVEREIGN BONDS SOVEREIGN DEBT SOVEREIGN DEFAULT STOCK MARKET STOCK RETURN STOCK RETURNS STOCKS SUPERVISORY AUTHORITY TAX TRADING TRANSACTION TRANSPARENCY TREASURY UNDERDEVELOPED CAPITAL MARKETS UNDERLYING ASSET VALUATION 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. 2012-03-19T18:04:14Z 2012-03-19T18:04:14Z 2011-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110823090344 http://hdl.handle.net/10986/3537 English Policy Research working paper ; no. WPS 5775 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean South America America Colombia |