Pension funds have gradually become one of the biggest institutional investors the world over. Ev... more Pension funds have gradually become one of the biggest institutional investors the world over. Even as their role in moving or stabilizing the capital markets is widely understood and well documented, the role performed by pension funds as financial intermediaries is less recognized and rarely mentioned. This paper presents a literature review to look at various facets of financial intermediation performed by pension funds. In the process, paper also mentions some unique characteristics of such funds, such as being custodians of very long term funds, which differentiate pension funds from other intermediaries such as Banks. Paper concludes by observing that pension funds are expected to become very significant intermediaries going forward because of not only the economic factors such as increase in global wealth, but also the sociological factors such as ageing population and improving longevity.
Pension funds have gradually become one of the biggest institutional investors the world over. Ev... more Pension funds have gradually become one of the biggest institutional investors the world over. Even as their role in moving or stabilizing the capital markets is widely understood and well documented, the role performed by pension funds as financial intermediaries is less recognized and rarely mentioned. This paper presents a literature review to look at various facets of financial intermediation performed by pension funds. In the process, paper also mentions some unique characteristics of such funds, such as being custodians of very long term funds, which differentiate pension funds from other intermediaries such as Banks. Paper concludes by observing that pension funds are expected to become very significant intermediaries going forward because of not only the economic factors such as increase in global wealth, but also the sociological factors such as ageing population and improving longevity.
Uploads
Papers