Multi-funds in the Chilean Pension System
This work describes the development of the multi-fund scheme in Chile, as well as its key features and results. It includes simulation exercises designed to model the returns and volatilities of the different types of Chilean pension funds over a 50-year horizon. It shows how the trend is for increasing returns and that the average expected return of the pension funds is greater as the percentage invested in equity increases, although the volatility is also higher. The considerable risk premium associated with investment in shares would justify the adoption of a greater risk when the investment horizon is longer. This does not mean that the risk is limited over time, but rather that the volatility of the equity assets provides periods of exit opportunities with significant returns.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Tuesta & Javier Alonso & Jasmina Bjeletic & Carlos Herrera, 2010. "Simulaciones de rentabilidades en la industria de pensiones privadas en el Peru," Working Papers 1019, BBVA Bank, Economic Research Department.
When requesting a correction, please mention this item's handle: RePEc:bbv:wpaper:1028. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (OSCAR DE LAS PENAS SANCHEZ-CARO)
If references are entirely missing, you can add them using this form.