0 money that employees of a company pay regularly to be invested to provide them with a pension when they are older --
1 a supply of money that many people pay into, which is invested in order to provide them with a pension --
2 an amount of money, collected from regular payments made by people who work, which is invested in order to pay pensions to people when they retire: --
The complexity of the charge structure means that, in general, charges are poorly understood by the average pension fund member.
This is surely the reality experienced by many in pension fund management.
If it accepted that the asset allocation of a pension fund should match the liabilities, the derivation of the entire efficiency frontier is unnecessary.
These countries provide a large number of studies which evaluate the effectiveness of pension fund activism.
This is most obvious when considering pension fund investment management functions, but can be extended to consider any issue involving judgement about beneficiaries' welfare.
At best, the pension fund may aim to hold the minimum-variance portfolio regarding mismatch risk.
In effect, we test whether owing to better resource allocation, incentives etc., pension fund growth makes the capital stock more productive.
In order for a pension fund to realize further cost economies, these factors would thus primarily need to be influenced.
