Evaluating the Financial Performance of Pension Funds: An Individual Investor’s Perspective

Paul John Marcel Klumpes, Michael McCrae

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

14 Citationer (Scopus)

Abstract

Pension funds require the managerial expertise of financial intermediaries, who must be paid a fee or spread. The spread significantly reduces the value of the pension fund over longer holding periods, and implies significantly greater incentive conflicts for defined contribution‐funded pension funds than for defined benefit‐funded pension funds. The magnitude of the intermediary spread and those factors affecting the demand for financial intermediary reputation and the marginal fee for this reputation are examined for a sample of 66 defined contribution and 54 defined benefit Australian pension funds during 1991–93. The intermediary spread significantly reduces the average net return provided to individual investors, particularly for defined contribution pension funds. Agency‐related factors affecting the demand for financial intermediary reputation and its marginal fee reflect underlying contract‐based differences between these types of fund.
OriginalsprogEngelsk
TidsskriftJournal of Business Finance and Accounting
Vol/bind26
Udgave nummer3-4
Sider (fra-til)261-281
Antal sider21
ISSN0306-686X
DOI
StatusUdgivet - 1999
Udgivet eksterntJa

Fingeraftryk

Dyk ned i forskningsemnerne om 'Evaluating the Financial Performance of Pension Funds: An Individual Investor’s Perspective'. Sammen danner de et unikt fingeraftryk.

Citationsformater