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


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use