Pension fund - A fund set up by a company, union, government entity, or other organisation to invest the pension contributions of members and employees, and pay out pensions to those people when they reach retirement age.Pension funds accumulate huge pools of capital which they invest in the stock and bond markets. Because of the weight of money, they exert considerable influence on the markets, and their decisions on which shares to hold in which sectors have a substantial impact on prices.Some pension funds employ their own fund managers; others delegate responsibility to external fund managers. Invariably they will try to achieve a diversified portfolio of investments, some in low risk areas, others in high risk areas. Actuaries determine how much is going to have to be paid out to pension holders in forthcoming years, and the pension fund has to try to achieve a rate of return on its capital that will meet (or better still exceed) this target.
Pension fund : a fund set up by a company, union, government entity, or other organisation to invest the pension contributions of members and employees, and pay out pensions to those people when they reach retirement age.pension funds accumulate huge pools of capital which they invest in the stock and bond markets. because of the weight of money, they exert considerable influence on the markets, and their decisions on which shares to hold in which sectors have a substantial impact on prices.some pension funds employ their own fund managers; others delegate responsibility to external fund managers. invariably they will try to achieve a diversified portfolio of investments, some in low risk areas, others in high risk areas. actuaries determine how much is going to have to be paid out to pension holders in forthcoming years, and the pension fund has to try to achieve a rate of return on its capital that will meet (or better still exceed) this target.
Pension fund