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dc.titleInvestment Management in the Pension Systems of Social Security Institutions
dc.contributor.authorCuéllar, Ekaterina
dc.contributor.authorOsorio Quevedo, Andrés
dc.contributor.authorRobles, Edgar A.
dc.contributor.authorTapia Troncoso, Waldo
dc.contributor.orgunitSocial Protection and Labor Markets Division
dc.coverageLatin America
dc.coverageThe Caribbean
dc.date.available2025-10-08T16:10:30
dc.date.issue2025-10-08T00:10:00
dc.description.abstractThis Technical Note examines investment management practices in the pension systems administered by Social Security Institutions (SSIs) in Latin America and the Caribbean. It identifies fifteen common shortcomings that undermine investment performance, including weaknesses in the suitability of governing bodies, limited independence of technical committees, excessive portfolio concentration, inadequate separation of reserve funds across social insurance programs, and the absence of specialized pension regulators capable of overseeing investment management and safeguarding pension reserves. The note also analyzes how these practices affect pension fund performance and discusses the main financial risks faced by SSIs, including investment, credit, liquidity, market, and operational risks. Building on this diagnostic, it presents practical recommendations to strengthen investment governance, including the establishment of independent investment and risk committees, the adoption of comprehensive investment and risk appetite policies, and the implementation of international standards such as the prudent person principle and the guidelines issued by the OECD and the International Organisation of Pension Supervisors (IOPS). The note aims to provide practical guidance to help SSIs strengthen investment governance, improve long-term investment performance, and manage pension reserves in a manner consistent with their fiduciary duty to protect the interests of contributors and pensioners.
dc.format.extent55
dc.identifier.doihttp://dx.doi.org/10.18235/0013742
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Gestion-de-inversiones-en-los-regimenes-de-pensiones-de-los-institutos-de-seguridad-social.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Gestion-de-inversiones-en-los-regimenes-de-pensiones-de-los-institutos-de-seguridad-social.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectInvestment
dc.subjectSocial Protection
dc.subjectPension Systems
dc.subjectSocial Security
dc.subjectRisk Management
dc.subjectCorporate Governance
dc.subjectRegulation
dc.subjectInvestment Policy
dc.subjectAuditing
dc.subjectFinancial Market
dc.subjectFinancial Risk
dc.subjectLiquidity
dc.subjectInstitutional Capacity
dc.subject.jelcodeH55 - Social Security and Public Pensions
dc.subject.jelcodeG11 - Portfolio Choice • Investment Decisions
dc.subject.jelcodeG23 - Non-bank Financial Institutions • Financial Instruments • Institutional Investors
dc.subject.jelcodeG32 - Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill
dc.subject.keywordspensions;Social Security Institutions;investments;Financial Risks;corporate governance;Latin America and the Caribbean;Sustainability
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-03190
idb.operationRG-T3884
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