Investment Performance of Private Pension Funds in Selected Asian Countries: The Role of Fees and Management Companies
- DOI
- 10.2991/aebmr.k.210507.025How to use a DOI?
- Keywords
- Pension funds, Asset-pricing models, Fama and French, Treynor and Mazuy, Equities, Bonds, Mixed assets
- Abstract
This paper examines the investment performance of private pension funds in Hong Kong, South Korea, Malaysia, Singapore, and Thailand, segregated by fund universe: Growth (equity), Moderate (balanced), and Conservative (bond) Fund. The adoption of hybrid model is a new attempt and all the three main categories of pension fund are evaluated in which previous studies have focused on merely equity funds. This study employs 6 years of monthly observations and a total of 931 pension-fund samples. Net returns and gross returns are used to evaluate the impact of fees on funds’ performance with the hybrid model which mimics the Fama-French and Treynor-Mazuy. Empirical findings imply that most private pension funds in Asia have inferior performance even before the consideration of fees. In addition, the Growth Fund outperforms the Moderate and Conservative Fund before fees are taken into consideration. Nonetheless, management fees do deteriorate the performance of pension funds. Hence, policy makers should strive to devise suitable course of actions to raise the retirement incomes of citizen. Additionally, the results may be useful to investors to make better informed investment decisions and fund managers in building the pension fund’s portfolio.
- Copyright
- © 2021, 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/).
Cite this article
TY - CONF AU - Loh Wen Yan AU - Wong Mei Foong PY - 2021 DA - 2021/05/09 TI - Investment Performance of Private Pension Funds in Selected Asian Countries: The Role of Fees and Management Companies BT - Proceedings of the Ninth International Conference on Entrepreneurship and Business Management (ICEBM 2020) PB - Atlantis Press SP - 164 EP - 171 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.210507.025 DO - 10.2991/aebmr.k.210507.025 ID - Yan2021 ER -