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  How Are Spain's Pension Funds Doing? 

Fernández, Pablo; Pershin, Vitaly; Fernández Acín, Pablo; Fernández Acín, Isabel
From 2001 to 2016, Spanish pension funds' average return was just 2.03 percent. That was considerably lower than the average annual return for the country's benchmark IBEX-35 index (5.24 percent) or for its government bonds (5.27 percent). What's more, only three pension funds (out of 335 in total) posted a higher return than the 15-year government bonds over the same period.

After crunching the numbers, professor Pablo Fernandez and his research team question the 2 percent annual commission charged by fund managers. They also wonder about the current tax incentives for fund investment.

How these pension funds are faring matters to many: As of December 31, 2016, 7.1 million investors had a combined 65.3 billion euros invested in Spanish pension funds.

Methodology, Very Briefly
The report analyzes the average annual profitability of Spain's 335 pension funds for 15 years (between December 2001 and December 2016) based on data from INVERCO. Returns for the Ibex-35 index and government bonds are according to Datastream.
This article is based on:  Rentabilidad De Los Fondos De Pensiones En España. 2001-2016
Publisher:  Social Science Research Network
Year:  2017
Language:  Spanish
Go to source Spanish

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