| Abstract [eng] |
Pension Fonds - Evaluation of Investment Return and Risk Assessment Demographic change in Europe has been observed and Lithuania is no exception from this. An aging population, falling birth-rates - are indicators of concern for both economists and governments. In Lithuania, according to the Department of Statistics, it is an additional risk factor - emigration. There are doubts in these days that in the future there will be enough taxes paid from employee’s salary to pay for pensions enough. Modern governments are constantly looking for ways to mitigate the effects of these changes on their economies and populations. Demographic and social changes are driving governments to make new decisions about how to properly regulate a pension. Increased public awareness and financial planning are encouraged. Citizens want to be more socially responsible and contribute to their own future investments. The purpose of this Master's thesis is to evaluate the return on investment of pension funds operating in Lithuania and the related risks. The following tasks have been raised and solved in order to achieve the aim of the work: • Investigate the legislative framework-affecting pension as a phenomenon and the functioning of pension funds; • To analyse pension fund financial market participants operating in Lithuania; • Investigate the impact of European Union directives and recommendations on Lithuanian pension funds; • To study the investment return indicators of pension funds operating in Lithuania; • To evaluate how the investment return of pension funds correlates with the Lithuanian investment index; • Assess the investment risks of pension funds and alternatives to pension funds. The research combined empirical and theoretical approaches to scientific cognition. The empirical knowledge was used to collect certain demographic facts and data related to pension, pension background and their regulation both in Lithuania and in the European Union. Theoretically, the claims of various authors with regard to general return on investment and risks in general and pension funds were investigated. The methods used to collect, compare, detail, evaluate, group and summarize information were mainly used in writing the master's thesis. |
