Competition and Performance in the Polish Second Pillar

This paper provides an assessment of the Polish funded pension system and the quality of the regulatory framework for the accumulation phase. There are two elements that distinguish the Polish pension fund portfolios from other reforming countries': the relatively high component of domestic equity, and the negligible component on international securities. Although this asset allocation has provided relatively high real rates of return in the past, it may not be the case in the future, as further portfolio diversification to other instruments will become necessary to ensure sustainable rates of return. The paper provides a number of recommendations to expand the opportunities of investments to pension funds. The paper finds that pension fund management companies have been able to exploit scale economies in certain areas of the business, such as collection of revenues, and proposes to study mechanisms to enhance them even more by centralizing also the account management system, which may also help to increase portfolio efficiency and competition. The paper suggests that, with the payout phase starting in 2009, broad definitions in areas such as the role of the public and private sector need to be established. The paper examines products and options that authorities may consider for the design of the payout phase.

Bibliographic Details

Main Authors:	Rudolph, Heinz, Rocha, Roberto
Language:	English en_US
Published:	Washington, DC: World Bank 2007
Subjects:	ACCOUNT HOLDERS, ACCOUNTING, ASSET CLASS, ASSET CLASSES, ASSET MANAGEMENT, ASSET MANAGER, ASSET MANAGERS, ASSET VALUE, ASSET VALUES, BANKING SYSTEM, BASIS POINTS, BENCHMARK BOND, BINDING CONSTRAINT, BOND INDEX, BOND INSTRUMENTS, BROKER, BROKERS, CAPITAL FUNDS, CAPITAL GAINS, CAPITAL MARKET DEVELOPMENT, CAPITAL REQUIREMENTS, CLEARING HOUSE, COLLECTIVE FUNDS, CONSUMER PROTECTION, CORPORATE BOND, CORPORATE BOND MARKET, CORPORATE BONDS, CORPORATE GOVERNANCE, CREDIT RATINGS, CREDIT RISK, CREDIT RISKS, CURRENCY, CUSTODIAN BANK, CUSTODIAN BANKS, CUSTODY, DEBT ISSUES, DEBT MANAGEMENT, DEBT MANAGEMENT GUIDELINES, DEFICITS, DEPOSIT, DEPOSITS, DERIVATIVES, DISCLOSURE REQUIREMENTS, DOMESTIC CAPITAL, DOMESTIC CAPITAL MARKET, DOMESTIC DEBT, DOMESTIC EQUITY, EQUITIES, EQUITY FUNDS, EQUITY HOLDINGS, EQUITY INDEX, EQUITY MARKET, EQUITY MARKETS, EXCESS LIQUIDITY, EXCHANGE COMMISSION, EXPENDITURE, EXPENDITURES, FINANCIAL ASSETS, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL RISK, FINANCIAL STATEMENTS, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL POLICY, FIXED INCOME, FIXED INCOME PORTFOLIO, FIXED INCOME PORTFOLIOS, FIXED INCOME SECURITY, FLOW OF INFORMATION, FOREIGN CURRENCY, FOREIGN CURRENCY RISK, FOREIGN EXCHANGE, FOREIGN INVESTMENT, FOREIGN INVESTMENTS, FOREIGN INVESTOR, FOREIGN INVESTORS, FREE ASSET, FREE RIDER PROBLEM, FUND MANAGEMENT, FUND MANAGERS, FUTURES, GENERAL OBLIGATION BONDS, GOVERNMENT BOND, GOVERNMENT BONDS, GOVERNMENT DEFICIT, GOVERNMENT SECURITIES MARKET, GRACE PERIOD, GUARANTEE FUND, HOLDING, INCOME INSTRUMENTS, INDIVIDUAL BONDS, INFLATION, INFLATION RATE, INSTITUTIONAL INVESTORS, INSTRUMENT, INSURANCE, INSURANCE COMPANIES, INSURANCE COMPANY, INSURANCE INDUSTRIES, INSURANCE INDUSTRY, INTEREST RATE, INTEREST RATE RISKS, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL DEBT, INTERNATIONAL DIVERSIFICATION, INTERNATIONAL SECURITIES, INTERNATIONAL STANDARDS, INVESTING, INVESTMENT BANK, INVESTMENT FUND, INVESTMENT FUNDS, INVESTMENT HORIZONS, INVESTMENT POLICIES, INVESTMENT POLICY, INVESTMENT REGIME, INVESTMENT REGULATION, INVESTMENT RESTRICTIONS, ISSUANCE, JOINT STOCK COMPANIES, LABOR MARKETS, LIQUID BENCHMARKS, LIQUID INSTRUMENTS, LIQUIDITY, LIQUIDITY RATIO, LOCAL GOVERNMENTS, LOCAL MARKET, LONG-TERM INVESTOR, MARKET CAPITALIZATION, MARKET CONDITIONS, MARKET FOR GOVERNMENT DEBT, MARKET INFRASTRUCTURE, MARKET LIQUIDITY, MARKET PRICES, MARKET SHARES, MARKET STRUCTURE, MATURITIES, MATURITY, MATURITY SPECTRUM, MATURITY STRUCTURE, MORAL HAZARD, MORTGAGE, MORTGAGE BOND, MORTGAGE BOND MARKET, MORTGAGE BONDS, MORTGAGE LOANS, MORTGAGE-BACKED SECURITIES, MUNICIPAL BOND, MUNICIPAL BOND MARKET, MUNICIPAL BONDS, MUTUAL FUND, MUTUAL FUNDS, NATIONAL DEPOSITORY, NATIONAL SAVINGS, PENSION, PENSION ASSET, PENSION ASSETS, PENSION FUND, PENSION FUND ASSETS, PENSION FUNDS, PENSION REFORM, PENSION SYSTEM, PENSION SYSTEMS, PENSIONS, PORTFOLIO, PORTFOLIO CHOICE, PORTFOLIO DIVERSIFICATION, PORTFOLIOS, PORTFOLIOS OF PENSION FUNDS, PRIVATE EQUITY, PRIVATE INVESTMENT, PROFIT MARGINS, PUBLIC DEBT, PUBLIC MARKET, RATE OF RETURN, RATES OF RETURN, REAL INTEREST, REAL INTEREST RATES, REGULATORY FRAMEWORK, REINVESTMENT, REINVESTMENT RISK, REINVESTMENT RISKS, RESERVE, RESERVE REQUIREMENT, RESERVES, RETURNS, REVENUE BOND, REVENUE BONDS, RISK EXPOSURES, RISK MANAGEMENT, RISK MANAGEMENT SYSTEMS, RISKY ASSET, SAVINGS RATES, SAVINGS RATIOS, SHARE OF EQUITY, SHARE OF GOVERNMENT SECURITIES, SHAREHOLDERS, SHARES OF INVESTMENT, SHARES OF INVESTMENTS, STOCK EXCHANGE, STOCKS, STRATEGIC INVESTORS, SUPERVISORY AUTHORITIES, SUPERVISORY BOARD, SWAPS, T-BILLS, T-BONDS, TAX, TAX INCENTIVES, TRADING, TRANSFER AGENTS, TREATY, TURNOVER, UNDERLYING ASSETS, UNIVERSAL BANKING, UNIVERSAL BANKS, VALUATION, VALUATIONS, WITHDRAWAL, YIELD CURVE, YIELD CURVES, YIELD SPREADS,
Online Access:	http://documents.worldbank.org/curated/en/2007/01/8100215/competition-performance-polish-second-pillar https://hdl.handle.net/10986/6775
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