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Evidence of active management of private voluntary pension funds in Colombia: a perfomance analysis using proxy ETFS

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Listed:
  • EDGARDO CAYÓN FALLÓN
  • TOMÁS RICARDO DI SANTO ROJAS
  • CAMILO RONCANCIO PENA

Abstract

The purpose of this study is to find evidence that shows that either activemanagement of private pension funds in Colombia actually adds value tothe investors or, on the contrary, investors would achieve better results ifthey invested in passively managed products such as, for example, an ETF(Exchange Trade Fund). After conducting a review of data available from 30different private pension funds in Colombia and 30 ETFs that had similarinvestment goals to these portfolios, our findings reveal that, using commonperformance indicators, a Colombian investor would have a better ROI byinvesting in passively managed products (ETFs) than in portfolios currentlyoffered by voluntary pension funds in Colombia.

Suggested Citation

  • Edgardo Cayón Fallón & Tomás Ricardo Di Santo Rojas & Camilo Roncancio Pena, 2010. "Evidence of active management of private voluntary pension funds in Colombia: a perfomance analysis using proxy ETFS," Estudios Gerenciales, Universidad Icesi, June.
    • Handle: RePEc:col:000129:008388
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    References listed on IDEAS

    as
    1. William F. Sharpe, 1965. "Mutual Fund Performance," The Journal of Business, University of Chicago Press, vol. 39, pages 119-119.
    2. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
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    More about this item

    Keywords

    Portfolio performance; active management; voluntary pension market inColombia;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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