publication . Report . Preprint . 1988

Pension Fund Investment Policy

Zvi Bodie;
Open Access
  • Published: 01 Oct 1988
  • Publisher: National Bureau of Economic Research
Abstract
The purpose of this paper is to survey what is known about the investment policy of pension funds. Pension fund investment policy depends critically on the type of plan: defined contribution versus defined benefit. For defined contribution plans investment policy is not much different than it is for an individual deciding how to invest the money in an Individual Retirement Account (IRA). The guiding principle is efficient diversification, that is, achieving the maximum expected return for any given level of risk exposure. The special feature is the fact that investment earnings are not taxed as long as the money is held in the pension fund. This consideration sh...
Subjects
free text keywords: Finance, business.industry, business, Stable value fund, Fund administration, Fund of funds, Pension, Sovereign wealth fund, Unit investment trust, Investment fund, Actuarial science, Target date fund
Related Organizations

11. Leibowitz, Martin L., Henriksson, Roy D., "Portfolio Optimization within a Surplus Framework," Financial Analysts Journal, Vol. 44, No. 2: March/April 1988.

12. Sharpe, William F., "Corporate Pension Funding Policy," Journal of Financial Economics, June 1976, PP. 183-193.

13. Tapper, Irwin, "Taxation and Corporate Pension Policy," Journal of Finance, March 1981, pp. 1-13.

14. Treynor, Jack, "The Principles of Corporate Pension Finance," Journal of Finance, May 1977, pp. 627-638. [OpenAIRE]

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publication . Report . Preprint . 1988

Pension Fund Investment Policy

Zvi Bodie;