Foreign Experience of Non-government Pension Funds Investment Policy: Lessons for Ukraine

The article deals with main aspects and features of non-government pension funds' investment policy in countries of the Organization for Economic Cooperation and Development (OECD). Features of the investment policy's state regulation and supervision of these countries are analysed. Directions of the foreign experience of nongovernment pension funds investment policy's adaptation in Ukraine are offered. The analysis allowed us to make a conclusion that the investment performance of private pension funds in different countries depends on a number of factors including: level of economic and legal support of the financial market and pension system, level of country's development and political risks. In modern conditions of stock market instability, in order to preserve and increase private pension funds in Ukraine, more attention should be paid to the investment diversification. For example, more funds should be directed to the securities (and other financial instruments) issued by well-established foreign companies reliable in international stock markets, with outstanding historical financial results, high current market value and perspective growth forecasts. The other widely used effective investment policy's optimisation method could be a range of quantitative limits, applied on the investment portfolios. Though different in various OECD countries, depending on pension system's type, state development strategy, legislative restrictions and other internal factors, foreign pension funds investment policy is still a benchmark for Ukraine. Specially, positive experience to follow should be an approach of pension funds supervision based on diligent professional risk assessment, which is used in many OECD countries and is aimed at investment risks hedging and pension assets protection.