Login | Register
Items in shopping cart: 0 | View
Second pillar pension fund underperforming, analysis shows
11 Sep 2013 Flash News
The clients of the companies managing funds within Slovakia’s second, privately administered pension pillar have not earned as much money as they could, according to the analysis by the Financial Policy Institute (IFP) which runs under the Finance Ministry.
The analysis compared profits in the second pension pillar scheme with the performance of similar investments abroad. It found out that the clients saving their money in so-called stock funds earned only 1 or 2 percent, while the investments into shares brought some investors up to 10 percent. Even the clients in guaranteed bond funds earned less than people investing into real bonds, as reported by the Sme daily.
The only exception is the equity-linked index fund, which matches the development of stock indices, Sme wrote.
The pension fund management companies say it is not their fault, explaining that the lower profits have been affected by restrictions passed by Prime Minister Robert Fico’s government, including compulsory guarantees which means that should investors lose money companies must cover losses from their own property, Sme wrote.
Martin Filko of the IFP says that the study shows that one and half years after abolishing the guarantees in some funds, the companies still have not bought stocks, Sme wrote.
Compiled by Radka Minarechová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
Most read articles
Euro Calculator (Sk30.1260 = 1 EUR)
What influences your travel plans?
Quote of the Week
“The candidacy is meant for someone who arrives well known and does not need a year and a half to show his face.” PM Robert Fico comments on the possibility of his running in the 2014 presidential elections.