Spectator on facebook

Spectator on facebook

Second pillar pension fund underperforming, analysis shows

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 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.

Source: Sme

Compiled by Radka Minarechová from press reports

The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

Rules for hiring foreigners are simpler. For exceptions

Despite positive changes, employers still point to some barriers preventing more effective and simpler recruitment of foreign workers.

Some problems with Foreigners’ Police continue.

For a Decent Slovakia protests to resume on Friday

After a summer break, organisers of the protests that have drawn masses to Slovakia’s streets stated that their – and the citizens’ – demands are far from being met.

For A Decent Slovakia march on June 22, 2018, in Bratislava.

News isn’t negative because journalists are cynical

The problem is caused by the demand side.

What is it like to study at a foreign college? Students explain to high-schoolers

Some Slovak students who study abroad already have work offers.

Students during the workshop