Upgrading Investment Regulations in Second Pillar Pension Systems :  A Proposal for Colombia

Castaneda, Pablo; Rudolph, Heinz P.

dc.creator	Castaneda, Pablo
dc.creator	Rudolph, Heinz P.
dc.date	2012-03-19T18:04:14Z
dc.date	2012-03-19T18:04:14Z
dc.date	2011-08-01
dc.date.accessioned	2023-02-17T20:58:50Z
dc.date.available	2023-02-17T20:58:50Z
dc.identifier	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
dc.identifier	http://hdl.handle.net/10986/3537
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244501
dc.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.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5775
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ASSET CLASS
dc.subject	ASSET CLASSES
dc.subject	ASSET MANAGEMENT
dc.subject	ASSET PORTFOLIO
dc.subject	ASSET PRICE
dc.subject	ASSET PRICES
dc.subject	BANK DEPOSITS
dc.subject	BANKING CRISES
dc.subject	BENEFICIARIES
dc.subject	BOND INSTRUMENTS
dc.subject	BOND YIELD
dc.subject	BOND YIELD CURVE
dc.subject	BROKERAGE
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL MARKET
dc.subject	CAPITALIZATION
dc.subject	CIVIL CODE
dc.subject	CIVIL CODES
dc.subject	COMMON LAW
dc.subject	COMPETITIVE FRAMEWORKS
dc.subject	COMPETITIVE MARKETS
dc.subject	CONFLICTS OF INTEREST
dc.subject	CONFLICTS OF INTERESTS
dc.subject	CONSUMPTION SMOOTHING
dc.subject	CORPORATE BOND
dc.subject	CREDIT RISK
dc.subject	CURRENCY RISK
dc.subject	DECLINE IN INVESTMENTS
dc.subject	DEPOSITS
dc.subject	DERIVATIVES
dc.subject	DEVELOPING COUNTRIES
dc.subject	DIVERSIFIED PORTFOLIO
dc.subject	DIVERSIFIED PORTFOLIOS
dc.subject	DOMESTIC CAPITAL
dc.subject	DOMESTIC CAPITAL MARKET
dc.subject	DOMESTIC EQUITIES
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	EMERGING ECONOMIES
dc.subject	EMERGING MARKET
dc.subject	EMERGING MARKETS
dc.subject	EQUITIES
dc.subject	EQUITY INDEX
dc.subject	EQUITY INSTRUMENTS
dc.subject	EQUITY INVESTMENT
dc.subject	EQUITY INVESTMENTS
dc.subject	EQUITY RETURNS
dc.subject	EQUITY VALUE
dc.subject	EXCHANGE RATE
dc.subject	FAIR VALUATION
dc.subject	FIDUCIARY RESPONSIBILITY
dc.subject	FINANCIAL ASSETS
dc.subject	FINANCIAL INFRASTRUCTURE
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL MARKETS
dc.subject	FIXED INCOME
dc.subject	FIXED INCOME MARKETS
dc.subject	FIXED INCOME PORTFOLIO
dc.subject	FOREIGN CURRENCY
dc.subject	FOREIGN EQUITIES
dc.subject	FOREIGN EQUITY
dc.subject	FREE ASSET
dc.subject	FREE ASSETS
dc.subject	FUND MANAGEMENT
dc.subject	FUND MANAGER
dc.subject	FUND MANAGERS
dc.subject	FUTURES
dc.subject	FUTURES MARKET
dc.subject	FUTURES MARKETS
dc.subject	GLOBAL CAPITAL
dc.subject	GLOBAL CAPITAL MARKETS
dc.subject	GLOBAL MARKETS
dc.subject	GOVERNMENT BOND
dc.subject	GOVERNMENT BONDS
dc.subject	GOVERNMENT SECURITIES
dc.subject	HEDGES
dc.subject	HIGH YIELD BONDS
dc.subject	HOLDING
dc.subject	HUMAN CAPITAL
dc.subject	ILLIQUID MARKETS
dc.subject	INCOME INSTRUMENTS
dc.subject	INCOME LEVEL
dc.subject	INDEXED BOND
dc.subject	INDEXED BONDS
dc.subject	INDIVIDUAL INVESTOR
dc.subject	INFLATION
dc.subject	INFLATION RISKS
dc.subject	INSTITUTIONAL INVESTOR
dc.subject	INSTITUTIONAL INVESTORS
dc.subject	INSTRUMENT
dc.subject	INSURANCE
dc.subject	INSURANCE COMPANY
dc.subject	INTEREST RATE
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL DIVERSIFICATION
dc.subject	INTERNATIONAL MARKET
dc.subject	INTERNATIONAL MARKETS
dc.subject	INVESTING
dc.subject	INVESTMENT ALTERNATIVES
dc.subject	INVESTMENT DECISION
dc.subject	INVESTMENT DECISIONS
dc.subject	INVESTMENT FUND
dc.subject	INVESTMENT GUIDELINES
dc.subject	INVESTMENT HORIZON
dc.subject	INVESTMENT HORIZONS
dc.subject	INVESTMENT IN STOCKS
dc.subject	INVESTMENT OPPORTUNITIES
dc.subject	INVESTMENT OPPORTUNITY
dc.subject	INVESTMENT POLICY
dc.subject	INVESTMENT PORTFOLIO
dc.subject	INVESTMENT PORTFOLIOS
dc.subject	INVESTMENT REGULATION
dc.subject	INVESTMENT REGULATIONS
dc.subject	INVESTMENT RESTRICTIONS
dc.subject	INVESTMENT STRATEGIES
dc.subject	INVESTMENT STRATEGY
dc.subject	INVESTMENTS IN EQUITIES
dc.subject	ISSUANCE
dc.subject	JUDICIAL COURTS
dc.subject	LIABILITY
dc.subject	LIFE INSURANCE
dc.subject	LIFE INSURANCE COMPANIES
dc.subject	LIFE INSURANCE COMPANY
dc.subject	LIQUID ASSETS
dc.subject	LIQUIDATION
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY PREMIUM
dc.subject	LIQUIDITY RATIO
dc.subject	LIQUIDITY RISK
dc.subject	LOCAL INVESTORS
dc.subject	LOCAL MARKET
dc.subject	LOCAL MARKETS
dc.subject	LONG-TERM INTEREST
dc.subject	LONG-TERM INTEREST RATES
dc.subject	LONG-TERM INVESTMENT
dc.subject	LONG-TERM INVESTOR
dc.subject	LONG-TERM INVESTORS
dc.subject	MANDATORY PENSION FUND
dc.subject	MARKET COMPETITION
dc.subject	MARKET CONDITIONS
dc.subject	MARKET DEVELOPMENT
dc.subject	MARKET INDICES
dc.subject	MARKET PLAYERS
dc.subject	MARKET RISK
dc.subject	MARKET RISKS
dc.subject	MARKET SHARE
dc.subject	MARKET STRUCTURE
dc.subject	MINORITY SHAREHOLDERS
dc.subject	MORTGAGE
dc.subject	MORTGAGE BONDS
dc.subject	MUTUAL FUNDS
dc.subject	OPTIMAL INVESTMENT
dc.subject	OPTIONS MARKET
dc.subject	PENSION
dc.subject	PENSION FUND
dc.subject	PENSION FUND INVESTMENT
dc.subject	PENSION FUND INVESTMENTS
dc.subject	PENSION FUNDS
dc.subject	PENSION REFORMS
dc.subject	PENSION SYSTEM
dc.subject	PENSION SYSTEMS
dc.subject	PENSIONS
dc.subject	PORTFOLIO
dc.subject	PORTFOLIO ALLOCATIONS
dc.subject	PORTFOLIO INVESTMENT
dc.subject	PORTFOLIO MANAGEMENT
dc.subject	PORTFOLIO QUALITY
dc.subject	PORTFOLIO RISK
dc.subject	PUBLIC DEBT
dc.subject	PUBLIC FUNDS
dc.subject	PURCHASING POWER
dc.subject	RATES OF RETURN
dc.subject	REAL INTEREST
dc.subject	REAL INTEREST RATES
dc.subject	REGULATORY AUTHORITY
dc.subject	REGULATORY FRAMEWORK
dc.subject	REINVESTMENT
dc.subject	REINVESTMENT RISK
dc.subject	REINVESTMENT RISKS
dc.subject	RESERVE
dc.subject	RETURN
dc.subject	RETURN ON ASSETS
dc.subject	RETURNS
dc.subject	RISK AVERSION
dc.subject	RISK MANAGEMENT
dc.subject	RISK PROFILE
dc.subject	RISK PROFILES
dc.subject	RISKY ASSET
dc.subject	RISKY ASSETS
dc.subject	SECURITIES
dc.subject	SECURITIES MARKETS
dc.subject	SHAREHOLDER
dc.subject	SHAREHOLDERS
dc.subject	SHORT-TERM ASSET
dc.subject	SHORT-TERM ASSETS
dc.subject	SHORT-TERM BOND
dc.subject	SHORT-TERM CAPITAL
dc.subject	SHORT-TERM INSTRUMENTS
dc.subject	SHORT-TERM TREASURY BILL
dc.subject	SHORT-TERM TREASURY BILLS
dc.subject	SINGLE ASSET
dc.subject	SOVEREIGN BONDS
dc.subject	SOVEREIGN DEBT
dc.subject	SOVEREIGN DEFAULT
dc.subject	STOCK MARKET
dc.subject	STOCK RETURN
dc.subject	STOCK RETURNS
dc.subject	STOCKS
dc.subject	SUPERVISORY AUTHORITY
dc.subject	TAX
dc.subject	TRADING
dc.subject	TRANSACTION
dc.subject	TRANSPARENCY
dc.subject	TREASURY
dc.subject	UNDERDEVELOPED CAPITAL MARKETS
dc.subject	UNDERLYING ASSET
dc.subject	VALUATION
dc.title	Upgrading Investment Regulations in Second Pillar Pension Systems : A Proposal for Colombia
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Latin America & Caribbean
dc.coverage	Latin America & Caribbean
dc.coverage	South America
dc.coverage	America
dc.coverage	Colombia