- International Monetary Fund. Monetary and Capital Markets Department
- Published Date:
- October 2004
Selected Topic From the IMF’s Global Financial Stability Report
Risk Management and the Pension Fund Industry
Todd Groome Nicolas Blancher François Haas Oksana Khadarina Kazunari Ohashi Rupert Thorne
© 2004 International Monetary Fund
This paper was first published as Chapter III of the September 2004 Global Financial Stability Report (GFSR), a semiannual publication that assesses global financial market developments with the view to identifying potential systemic weaknesses, and is reprinted here with minor modifications. The paper is the second in a series on the financial stability implications of the reallocation and transfer of risks to a variety of nonbank institutions, following the chapter, “Risk Transfer and the Insurance Industry,” in the April 2004 GFSR, and will be followed by a chapter on the fund management industry and the household sector in general in the March 2005 GFSR. Those two chapters are also being issued as separate papers.
The GFSR is prepared by the International Capital Markets Department (ICM), under the direction of the Counsellor and Director, Gerd Häusler. It is managed by an Editorial Committee comprising Hung Q. Tran (Chairman), W. Todd Groome, Jorge Roldos, and David J. Ordoobadi. This paper was written by ICM’s Financial Market Stability Division, including contributions by Renzo Avesani, Nicolas Blancher, Toni Gravelle, Todd Groome, François Haas, Oksana Khadarina, Yoon Sook Kim, William Lee, Kazunari Ohashi, and Rupert Thorne. We are also very grateful for additional contributions from Peter Heller and Dominique Simard of the IMF’s Fiscal Affairs Department, Jon Exley of Mercer Investment Consulting, and Tim Giles of Charles River Associates. Cynthia Galang provided expert word processing assistance. Jeff Hayden of the External Relations Department edited the manuscript and coordinated production of the publication.
This paper draws, in part, on a series of informal discussions with commercial and investment banks, securities firms, pension funds, and credit rating agencies in Canada, France, Germany, Hong Kong SAR, Italy, Japan, the Netherlands, Singapore, Switzerland, the United Kingdom, and the United States. The report reflects information available up to July 30, 2004.
The report has benefited from comments and suggestions from staff in other IMF departments, as well as from Executive Directors following their discussions of the Global Financial Stability Report on August 30, 2004. However, the analysis and policy considerations are those of the contributing staff and should not be attributed to the Executive Directors, their national authorities, or the IMF.