Investor Glossary-pension fundInvestor Glossary-pension fundInvestor Glossary-pension fundInvestor Glossary-pension fundInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Pension Fund

The HTML to link to this page
 

A pension fund is an entity set up to collect monies from employer(s) and workers, invest the proceeds in securities and other assets, and pay benefits to retirees from the fund's accumulated resources. A pension fund ordinarily has an investment policy statement that describes the nature of the assets in which the pension fund can invest. Traditionally, the investment plan of a pension fund has been quite conservative, sometimes limiting its investment vehicles to government bonds or life insurance annuities. In recent decades, the average pension fund has assumed a more aggressive investment posture to achieve the higher returns required by its obligations. A pension fund often amasses large pools of funds: the pension fund of the California teachers, for example, had some $116 billion in assets in 2004. Because of its huge resources, a pension fund may have considerable clout in the investment community and use its influence to achieve social goals. In other cases, however, a pension fund will work only to achieve the highest returns possible for its retiree beneficiaries.



Rate this pension fund definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: implied volatility, EBITDA, APR, liquidity ratio, labor relations, VIX, current ratio, 1031 exchange, balance sheet, ex-dividend, FTSE, risk management, Zero Cost Collar, retained earnings, dividends payable, stock market close, phantom income, diluted share, debt service coverage, required rate of return, 1035 exchange, command economy, inflation, 144a, real GDP, annual return, limit order, deferred tax, stock split, 401a, wholly-owned subsidiary, margin rate, class C shares, option premium, in escrow, open position, deferred revenue, Key Rate Duration, minority interest, per diem, ex-dividend date, covered put, reverse mortgage, cancelled check, average price per share, FICO score, quality assurance, LIBOR, irrevocable trust


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use