A fund established by an employer to assist and systematize the investment of employees' retirement funds supplied by the employer and employees. The pension fund is a common asset pool destined to produce stable growth over the long term, and supply pensions for employees when they get to the closing stages of their working years and begin retirement.
A pension fund is any plan, fund, or program which offers retirement income to employees or results in a delay of income by employees.
Pension funds are usually run by some kind of financial agent for the company and its employees, although some larger corporations activate their pension funds in-house. Pension funds manage comparatively large amounts of assets and signify the largest institutional investors in many nations.
Allegheny and Westmoreland counties are trying to decrease their pension funds' exposure to the unstable stock market through a fairly new sort of investment based on life insurance strategies.
The two governments' humble investments in life settlement, buying and selling the privileges to the death benefits paid by life insurance strategies covering wealthy individuals, is not regular in the pension fund world, where real estate, hedge funds, private impartiality and other substitute investments have been mainstays for years.
Concern in the emerging market was flashed by the stock market's slide in late 2008 and early 2009. The fall down scared on edge investors, prompting them to look for investments that stirred independently.
Pension funds are chief shareholders of listed and private companies. They are particularly significant to the stock market where large institutional investors like the Ontario Teachers' Pension Plan take over. The major 300 pension funds jointly hold about $6 trillion in funds. In January 2008, The Economist accounted that Morgan Stanley approximates that pension funds internationally hold over US$20 trillion in funds, the largest for any group of investor ahead of mutual funds, insurance companies, currency reserves, sovereign wealth funds, hedge funds, or private equity.