New Insights into the Value Drivers of Pension Funds

We recently published a paper, investigating investment beliefs. A direct relationship between the observed investment beliefs held by pension funds and performance measures is tested using an international sample of pension funds. Investment beliefs address strategic choices in the investment philosophy and process that affect the future performance of the fund. Data from over 600 funds between 1992 and 2006 show that the debates in the pension fund industry address the relevant issues: active management, alternative and new, innovative strategies. The addition of these activities does not necessarily improve the overall performance of a fund, and it may eventually offset the fund’s cost and net returns advantage due to its size. We find that the beliefs to which a fund adheres affect its success; the thorough consideration of the relationships between beliefs is equally important.

Paper Investment Beliefs that Matter: New insights into the value drivers of pension funds – Kees Koedijk, Alfred Slager, Rob Bauer

About Alfred Slager

Alfred Slager is professor of pension fund management at TiasNimbas Business School, and director of CentER Appplied Research at the Tilburg School of Economics and Management. His expertise includes international financial services, with a particular interest in investment management and pension funds. He regularly teaches courses to investment managers and pension fund trustees. Prior to this he worked as Chief Investment Officer at Stork Pension Fund, as investment strategist and policy advisor at PGGM Investments, and as manager research and investment manager at Fortis Investments. Slager regularly publishes on pension and investment management subjects and teaches executive courses for pension fund trustees.
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