Performance of Pension Funds

The risk and the rate of return offered to companies and workers that are relative to those obtained from pay-as-you-go schemes comprise the crucial test for the economic efficiency associated with funded pension schemes. These elements depend largely on the funds' asset allocation that further influences the general behaviour of capital markets. This chapter analyses the relative levels of benefits brought about by these funds as well as their administrative costs and contributions. While it examines the determinants and the various aspects of their portfolio behaviour, it also looks into the how overall risks and returns are affected, as well as how fund management affects both fund costs and behaviour.