Pension fund investments and the valuation of liabilities under conditional indexation
AbstractThis paper reviews the investment policy of collective pension plans. We focus on funds with a collective Defined Contribution character. We suggest two reasons to invest in equities: the lack of a well-developed market in index-linked bonds, and deliberate deviations from the Defined Benefit nature of the plan. Furthermore, this paper assesses the value of limited or conditional indexation options found in many plans.
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Bibliographic InfoArticle provided by Elsevier in its journal Insurance: Mathematics and Economics.
Volume (Year): 42 (2008)
Issue (Month): 1 (February)
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Web page: http://www.elsevier.com/locate/inca/505554
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