Occupational pension funds

Autenne, Alexia

doi:10.1177/1388262717712152

Cited by 9 publications

(2 citation statements)

References 15 publications

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“…If regulation change and performance are among the most salient factors affecting fund flow to pension plans, the fees they incur over the long investment period would be the next most impactful. Low fees are signs of effective governance, which is critical for both mutual and pension funds (Autenne, 2017). There is a large body of literature documenting that mutual funds fail to provide a positive return net of their fees.…”

Section: Introductionmentioning

confidence: 99%

Private pension fund flow, performance and cost relationship under frequent regulatory change

Erzurumlu

Ucardag²

2021

JFRC

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Purpose This paper aims to investigate private pension fund investor sentiment against fund performance and cost in an environment of frequent regulatory changes. The analyses are conducted in a low return, high-cost private pension fund market environment, which makes it easier to observe the relationship between investor sentiment to return and cost. Design/methodology/approach This paper conducts fixed effect, random effect and random effect within between effect panel data analyses of all Turkish private pension funds from 2011 to 2019. This paper conducts the analyses using aggregate data and subsets based on fund characteristics and pre-post regulation periods. Findings When regulations provide compensation and improve market efficiency in a pension fund market, investor focus shifted from performance to cost. Investors allocated assets with respect to return realization when adequately compensated for risk or had favorable cost contract clauses. Consequently, investors in pension funds with lower expected returns and no special fee reduction clauses tended to adopt the strategy of cost minimization. Research limitations/implications The overlap of regulatory change periods could complicate the ability to distinguish the impact of any one specific change. The findings therefore cannot be generalized to differently structured markets. Practical implications Regulatory changes could lead to a switch of investor objectives. When regulatory changes compensate investors and increase market efficiency, investors objective could switch from performance to cost. Originality/value This study investigates investor sentiment in a relatively young private pension fund market, in which the relevant regulatory body ambitiously implements frequent changes in regulation. The selected market is unique in the sense that it has negative real returns and high costs, which make investor focus to return and cost more readily apparent.

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Section: Introductionmentioning

confidence: 99%

Private pension fund flow, performance and cost relationship under frequent regulatory change

Erzurumlu

Ucardag²

2021

JFRC

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“…Among institutional investors, occupational pension schemes deserve specific attention (Autenne, 2017). Following previous US and UK reforms, the EU past reform (IORP I) sought to foster occupational pension funds involvement in the EU common financial market.…”

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confidence: 99%

The Current Challenges for EU Company and Financial Law and Regulation

Autenne

Biondi

Cavalier

et al. 2018

Accounting, Economics, and Law: A Convivium

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European company and financial law and regulation have been evolving over time along with business and financial practices. The resulting ‘social licence’ established by company and financial law and regulation aimed to balance the granted privileges of limited liability and share transferability with the corporate social contribution to economic development and employment. Recent transformations driven by shareholder value and financialisation have been challenging this balance of interests between stakeholders (including employees and shareholders) and society. The EU institutional framework may respond to these challenges by reaffirming the centrality of the enterprise as a going concern. On this basis, corporate accountability and responsibility may be enforced to make ongoing corporate affairs accountable and responsible for their contribution to economy and society. Ongoing corporate capacity to cope with social and environmental responsibilities may be assured along with the fair and sustainable remuneration of stakeholders, including shareholding investors, and a fair tax contribution. The EU institutional design and policy mix may be organised to respond to this comprehensive set of corporate dimensions. Here the most relevant fields to be reconsidered include: enterprise groups and corporate social responsibility; financial reporting and transparency; financial investment and asset management.

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