Specific investment of domestic private pension funds

Abstract

Development and strengthening of private pension funds market is impossible without a thorough analysis of its current state, identify unresolved problems in operation.

Given the results of the analysis of investment of a fund can be identified difficulties in development funds:

- negative impact of the crisis on the financial system as a whole, so that was undermined public confidence in all financial institutions;

- reduce solvency population as rising prices, utility costs, and wages almost "frozen", save for retirement is becoming increasingly difficult;

- coagulation participation of employers in pension programs for their employees, because in times of crisis, many companies find themselves in dire financial straits and limited amounts of pension contributions;

- negative signal to the scheme as slowed down compared to the pre-crisis period of growth by pension funds;

- need to improve pension schemes and improving the investment of pension funds;

- data reporting of private pension funds show a decrease yields of most funds.

Private pension funds should be able to use options, but only to hedge risks on stocks, as most other assets, placing the premiums of private pension funds - a fixed income. Application options would allow private pension funds to hedge against decline in the market value of the shares. Of course, the use of options will decrease the yield of pension funds, but they will be no significant damage.