Bridge over ocean
1 November 1998 Financial Analysts Journal Volume 54, Issue 6

Improving Pension Fund Performance

  1. Keith P. Ambachtsheer
  2. Ronald Capelle
  3. Tom Scheibelhut

With global pension assets projected to reach US$12 trillion by 2000, understanding what drives pension fund performance has never been more important. The study of pension funds described in this article found that the funds, after adjustment for the incremental costs and risks they undertook, underperformed their passive policy benchmarks in the 1993–96 period by an average 60 basis points a year. We discuss three drivers of fund performance—fund size, proportion of assets passively managed, and quality of the fund's organization design—and offer suggestions for improving pension fund performance by improving elements of the fund's organization.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content

We’re using cookies, but you can turn them off in Privacy Settings.  Otherwise, you are agreeing to our use of cookies.  Accepting cookies does not mean that we are collecting personal data. Learn more in our Privacy Policy.