Abstract
This paper examines the relationship between asset managers’ nationality and the Italian occupational pension funds extending the existing literature on the topic. We use a double analysis methodology, targeted at single- and multiple-managers, distinguishing between Italian and/or foreign professional managers. The results obtained show how asset manager’s nationality impacts differently on managed pension funds’ performance according to the different investment line risk level, opening debate on asset managers’ management skills.
Highlights
The picture portrayed by the 2015 edition on data for 2014 of the annual report published by the OECD “Pension markets in focus”, reveals that pension funds are still the main financing vehicle for private pension plans, with USD 25.2 trillion of assets under management (AUM), representing 66.8% of total private pension assets in the OECD
This paper investigates whether asset manager nationality affects Italian occupational pension fund performance, distinguishing between single-manager and multiple-managers
The aim of this paper is to verify whether asset manager nationality impacts on Italian occupational pension fund performance
Summary
The picture portrayed by the 2015 edition on data for 2014 of the annual report published by the OECD “Pension markets in focus”, reveals that pension funds are still the main financing vehicle for private pension plans, with USD 25.2 trillion of assets under management (AUM), representing 66.8% of total private pension assets in the OECD. The survey shows that sixteen of the thirty-six OECD countries have assets-to-GDP ratios of more than 20%, the minimum level for meeting the OECD‟s definition of a “mature” pension fund market. Each Italian occupational pension fund presents its investors with a choice of various investment lines, from a minimum of two to a maximum of five, with different levels of risk, from no-risk ( called „guaranteed line‟) to higher risk. In accordance with Pension Funds Supervision Commission (COVIP) guidelines, the „guaranteed line‟ is the investment line without any risk, i.e. the expected loss by members is zero; the „very low risk line‟ is the investment line for which the expected annual loss by its members is maximum 10%; the „low risk line‟ considers the possibility of a maximum 30% expected loss per year; „balanced‟ is the investment line for which the expected loss by its members is (maximum) from 30% to 50%; „growth‟ is the investment line for which the expected loss could be even higher than 50% per year. We identify investment line types from 1 (guaranteed line: no risk) to 5 (very high risk investment line: growth)
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