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Portfolio Risk of International Diversification of Kosovo Pension Fund: A Historical Perspective

Author

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  • Florin Aliu

    (Faculty of Management and Economics, Tomas Bata University in Zlin, Mostní 5139, 760 01 Zlín, Czech Republic)

  • Adriana Knápková

    (Faculty of Management and Economics, Tomas Bata University in Zlin, Mostní 5139, 760 01 Zlín, Czech Republic)

Abstract

Finance do not stand on static variables like exact sciences, they are changeable and influenced from human actions. The question where to invest funds, is a crucial task for financial managers. The study aimed at assessing the portfolio risk of different asset managers of the Kosovo Pension and Saving Trust. In general, the assessment has been categorized in two historical perspectives. The first phase is an assessment of the portfolio risk of the fund from 2003 to 2009 and the second phase is from 2003 to 2013. In general, portfolio risk in the second stage has shown a reduction as compared to the first stage. However, the return side shows also a reduction in the second phase than the first one. The overall risk of Kosovo Pension and Saving Trust has been in accepted range. Majority of money have been invested in stocks which automatically exposes huge risk on KPST portfolio, since it is proven that financial markets are not stable and they are prone to asset bubbles.

Suggested Citation

  • Florin Aliu & Adriana Knápková, 2017. "Portfolio Risk of International Diversification of Kosovo Pension Fund: A Historical Perspective," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 65(1), pages 237-244.
    • Handle: RePEc:mup:actaun:actaun_2017065010237
    DOI: 10.11118/actaun201765010237
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    References listed on IDEAS

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    1. Georg Inderst, 2009. "Pension Fund Investment in Infrastructure," OECD Working Papers on Insurance and Private Pensions 32, OECD Publishing.
    2. Reisen, Helmut, 1997. "Liberalizing foreign investments by pension funds: Positive and normative aspects," World Development, Elsevier, vol. 25(7), pages 1173-1182, July.
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    4. Mr. Jorge Roldos, 2004. "Pension Reform, Investment Restrictions and Capital Markets," IMF Policy Discussion Papers 2004/004, International Monetary Fund.
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