Entre las diversas alternativas de ahorro, previsión y/o inversión a largo plazo, un sujeto a la hora de discrimirar entre ellos debe elegir aquella que le proporcione una mayor rentabilidad financiero-fiscal, para lo cual no sólo debe tomar en cuenta la rentabilifad del producto sino tambien su fiscalidad. Por ello, este trabajo presenta un análisis en términos homogéneos de la rentabilidad...
Sistemas de protección social son elementos fundamentales en la gobernanza nacional. Son la expresión de los valores sociales de cualquier sociedad. Los sistemas de protección social tienen tres objetivos principales: garantizar el acceso a bienes y servicios esenciales para todos los miembros de una sociedad, para promover la seguridad socioeconómica activa, y para avanzar en el potencial...
This paper presents eight financing alternatives, based on policy positions by the United Nations and international financial institutions, and shows that fiscal space for social protection exists even in the poorest countries. Of the eight options, six increase the overall size of a country’s budget: (i) increasing tax revenues; (ii) expanding social security coverage and contributory revenues;...
Emerging economies have tried to promote long-term debt because it reduces maturity mismatches and the probability of crises. This paper uses unique evidence from the leading case of Chile to study to what extent domestic institutional investors hold longterm instruments. We compare monthly asset-level portfolios of Chilean institutional investors (mutual funds, pension funds, and insurance...
This paper examines how uncertainty regarding future mortality and life expectancy outcomes, i.e. longevity risk, affects employer-provided defined benefit (DB) private pension plans liabilities. The paper argues that to assess uncertainty and associated risks adequately, a stochastic approach to model mortality and life expectancy is preferable because it permits to attach probabilities to...
This paper provides a stylised assessment of the impact of investment-relevant pension fund regulations and accounting rules on contribution and investment strategies within the context of an asset-liability model (ALM) specifically designed for this purpose. The analysis identifies a substantial impact of regulations which, in a simplified way, resemble those in place in Germany, Japan, the...
Sovereign Wealth Funds (SWFs) are pools of assets owned and managed directly or indirectly by governments to achieve national objectives. These funds have raised concerns about: (i) financial stability, (ii) corporate governance and (iii) political interference and protectionism. At the same time governments have formed other large pools of capital to finance public pension systems, i.e. Public...
This paper reviews the impact of ageing on private pensions, in particular on the payout phase, assesses the part that annuities can play in financing retirement, and examines the role of financial markets in facilitating the allocation on assets accumulated in defined contribution pension plans. A comprehensive set of recommendations for discussion is provided at the end of the paper. Este...
With rapidly increasing population and growing catastrophe exposure in their countries, many more government leaders (including Presidents, Prime Ministers and Rulers) are now faced with a strategic question: how best develop a national strategy to hedge against the massive economic burden of extreme events that could hit their country tomorrow? We propose a framework to help those leaders in...
The property losses from the Feb 27th 2010 Maule earthquake are assessed as $18.1Bn paid for 38% by insurers, 47% by the Government of Chile and 15% by individuals and businesses. Including $4Bn damage to infrastructure and the costs of lost economic activity the total loss in 2010 values is estimated to have been close to $28Bn. The report considers policy options for expanding the proportion of...
