IDEAS home Printed from https://ideas.repec.org/a/spt/apfiba/v16y2026i4f16_4_4.html

Strategic Asset Allocation, Risk, and Long-Term Performance of a Pension Fund: Evidence from Kosovo

Author

Listed:
  • Klesta Qehaja

Abstract

This study examines the Kosovo Pension Savings Trust (KPST) as a long-term institutional investor operating within an emerging financial system. The paper analyzes the institutional framework, governance structure, and investment philosophy of the fund, and evaluates its evolution in terms of asset growth, contributor accumulation, and structural transformation. Particular attention is given to long-term investment outcomes, including portfolio performance, stability, and resilience during periods of market stress. The analysis further investigates institutional constraints, regulatory influences, and strategic asset allocation discipline, highlighting how governance and risk tolerance shape investment behavior. Beyond portfolio performance, the study evaluates the broader economic role of the pension fund, including its contribution to capital market development, international diversification, and long-term savings transformation. The findings suggest that strong governance, disciplined strategic allocation, and long-term investment orientation are key determinants of institutional performance and financial stability in emerging economies. JEL classification numbers: G11, G23, E22, O16.

Suggested Citation

  • Klesta Qehaja, 2026. "Strategic Asset Allocation, Risk, and Long-Term Performance of a Pension Fund: Evidence from Kosovo," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 16(4), pages 1-4.
    • Handle: RePEc:spt:apfiba:v:16:y:2026:i:4:f:16_4_4
    as

    Download full text from publisher

    File URL: http://www.scienpress.com/Upload/JAFB%2fVol%2016_4_4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
    2. Gordon L Clark & Roger Urwin, 2008. "Best-practice pension fund governance," Journal of Asset Management, Palgrave Macmillan, vol. 9(1), pages 2-21, May.
    3. D Blake & B N Lehmann & A Timmermann, 2002. "Performance clustering and incentives in the UK pension fund industry," Journal of Asset Management, Palgrave Macmillan, vol. 3(2), pages 173-194, September.
    4. Campbell, John Y. & Viceira, Luis M., 2002. "Strategic Asset Allocation: Portfolio Choice for Long-Term Investors," OUP Catalogue, Oxford University Press, number 9780198296942.
    5. Fiona Stewart & Juan Yermo, 2009. "Pension fund governance: Challenges and potential solutions," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2008(2), pages 1-42.
    6. 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.
    7. Bruce N. Lehmann & Allan Timmermann, 2002. "(UBS Pensions Series 3) Performance Clustering and Incentives in the UK Pension Fund Industry," FMG Discussion Papers dp425, Financial Markets Group.
    8. Bodie, Zvi, 1990. "Pensions as Retirement Income Insurance," Journal of Economic Literature, American Economic Association, vol. 28(1), pages 28-49, March.
    9. Uran RADONIQI & Abdylmenaf BEXHETI, 2023. "Fiscal Sustainability – A Review on Pension System," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 14-20.
    10. Barr, Nicholas & Diamond, Peter, 2008. "Reforming Pensions: Principles and Policy Choices," OUP Catalogue, Oxford University Press, number 9780195311303.
    11. Ymer Havolli & Ruzhdi Morina, 2016. "Development Of Kosovo Pension Saving Trust Fund," Eurasian Journal of Business and Management, Eurasian Publications, vol. 4(4), pages 56-70.
    12. Roger G. Ibbotson & Paul D. Kaplan, 2000. "Does Asset Allocation Policy Explain 40, 90, or 100 Percent of Performance?," Financial Analysts Journal, Taylor & Francis Journals, vol. 56(1), pages 26-33, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Blake, David & Cairns, Andrew & Dowd, Kevin, 2008. "Turning pension plans into pension planes: What investment strategy designers of defined contribution pension plans can learn from commercial aircraft designers," MPRA Paper 33749, University Library of Munich, Germany.
    2. Palea, Vera, 2019. "Accounting for Sustainable Finance: Does Fair value Accounting Fit for Long-term Investing in Equity?," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201912, University of Turin.
    3. Martin Gold, 2010. "Fiduciary Finance," Books, Edward Elgar Publishing, number 13813.
    4. Fujun Lai & Qian Wang & Qingxiang Feng, 2019. "Does Chinese Financial Market Information Promote Listed Manufacturing Firms’ Productivity?," Sustainability, MDPI, vol. 11(2), pages 1-20, January.
    5. Luc Arrondel & Jérôme Coffinet, 2018. "Demand For Stocks in the Crisis: France 2004-2014," PSE Working Papers halshs-01785324, HAL.
    6. Garcia Huitron, Manuel & Ponds, Eduard, 2016. "Participation and Choice in Funded Pension Plans : Guidance for the Netherlands from Worldwide Diversity," Other publications TiSEM 5351a381-f866-4566-82d8-9, Tilburg University, School of Economics and Management.
    7. João M. Sousa & Ricardo M. Sousa, 2019. "Asset Returns Under Model Uncertainty: Evidence from the Euro Area, the US and the UK," Computational Economics, Springer;Society for Computational Economics, vol. 54(1), pages 139-176, June.
    8. José Luis Iparraguirre, 2020. "Economics and Ageing," Springer Books, Springer, number 978-3-030-29019-1, January.
    9. Merve Mert Sarıtaş, 2025. "Forecasting the XBANK Index in Türkiye Using Macroeconomic Indicators: A Model Comparison with Ensemble Learning Methods," International Econometric Review (IER), Economic Research Association, vol. 17(1), pages 44-58, June.
    10. Tebogo Tshepo Kubanji & Simangaliso Biza-Khupe & Mogotsinyana Mapharing, 2021. "The Causality Relationship Between Financial Sector Profitability and the Botswana Economy," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(3), pages 381-392, May.
    11. Ho, Sin-Yu, 2017. "The Macroeconomic Determinants of Stock Market Development: Evidence from Malaysia," MPRA Paper 77232, University Library of Munich, Germany.
    12. Anufriev Mikhail & Bottazzi Giulio, 2012. "Asset Pricing with Heterogeneous Investment Horizons," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(4), pages 1-38, October.
    13. Chen, Pei-wen & Huang, Han-ching & Su, Yong-chern, 2014. "The central bank in market efficiency: The case of Taiwan," Pacific-Basin Finance Journal, Elsevier, vol. 29(C), pages 239-260.
    14. Paulo Armada Leite & Maria Ceu Cortez, 2009. "Conditioning information in mutual fund performance evaluation: Portuguese evidence," The European Journal of Finance, Taylor & Francis Journals, vol. 15(5-6), pages 585-605.
    15. M. Mallikarjuna & R. Prabhakara Rao, 2019. "Evaluation of forecasting methods from selected stock market returns," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-16, December.
    16. Shahid Ebrahim, M. & Hussain, Sikandar, 2010. "Financial development and asset valuation: The special case of real estate," Journal of Banking & Finance, Elsevier, vol. 34(1), pages 150-162, January.
    17. Carl Joachim Kock, 2005. "When the Market Misleads: Stock Prices, Firm Behavior, and Industry Evolution," Organization Science, INFORMS, vol. 16(6), pages 637-660, December.
    18. Roberto J. Santillán-Salgado, 2011. "Is the Mexican Stock Market Becoming More Efficient?," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 6(1), pages 87-102, Julio-Dic.
    19. Nihat Gümüş & Murtala Mustapha Baba, 2024. "Unveiling the Dynamics: Exploring the Relationship between Emerging Stock Market Prices and Macroeconomic Indicators through ARDL Analysis," International Econometric Review (IER), Economic Research Association, vol. 16(1), pages 24-49, June.
    20. Guiso, Luigi & Sodini, Paolo, 2013. "Household Finance: An Emerging Field," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, volume 2, chapter 0, pages 1397-1532, Elsevier.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spt:apfiba:v:16:y:2026:i:4:f:16_4_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Eleftherios Spyromitros-Xioufis (email available below). General contact details of provider: http://www.scienpress.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.