Investment Trends of Latvian Pension Funds After the 2008 Financial Crisis

DOI

10.2991/icaat-16.2016.17How to use a DOI?

Keywords

Pension fund, investment decisions, portfolio choice, financial crisis

Abstract

Investments are one of the most essential drivers of economic growth; without the investments no economic processes are possible. In this respect, not only investments in development projects of national significance, entrepreneurship and infrastructure but also in promoting the wellbeing of every individual and household are important. Pension schemes may be attributed to specific investment services. With the changes caused by the financial and economic crisis of 2008, considerable changes took place also in financial markets and uncertainly increased in the business and investment environment. The changes in the global financial markets were caused by bankruptcies of banks and other financial institutions as well as the implementation of bank rescue plans in many world countries, including Latvia. Recovery trends are increasingly observed in the global economy, and Latvia's economy returned to growth in 2011; yet, there is still significant uncertainty over economic prospects, mostly in the world's developed economies. After the financial crisis, Latvian pension funds have reduced investment in risky assets, such as equities, and increased investments in fixed income and alternative assets. The distribution of investments by the private pension funds has changed fundamentally. The contribution of the private pension funds to the Latvian economy has impressively shrunk.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jekaterina Jefremova
AU  - Iveta Mietule
PY  - 2016/12
DA  - 2016/12
TI  - Investment Trends of Latvian Pension Funds After the 2008 Financial Crisis
BT  - Proceedings of the 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)
PB  - Atlantis Press
SP  - 155
EP  - 162
SN  - 2352-5428
UR  - https://doi.org/10.2991/icaat-16.2016.17
DO  - 10.2991/icaat-16.2016.17
ID  - Jefremova2016/12
ER  -