Investments and portfolio structure of private pension and insurance companies in North Macedonia

Abstract

The financial market in general is where supply and demand for funds are met. In other words, funds saved in the financial market are directed to investments in order to contribute to the economy. In the Macedonian financial market, the banking sector is really dominant but also pension funds and insurance funds have an active role. This research will be studied the distribution of pension funds’ portfolios in the North Macedonian financial market. The global financial crisis in 2008 negatively affected the economies and financial markets of many countries, including the USA and Europe, and the effects of the crisis continued until 2013. This negatively affected the confidence in the financial markets, and the current surplus of funds was directed towards low-risk but fixed or low-yield financial instruments. As of 31.12.2018, fund accumulation in private pension funds amounted to 1.04 billion euros, corresponding to approximately 10 percent of GDP. The total premium production of insurance companies is around 157 million euros, while the GDP ratio of premium production is around 1.5 percent. Funds collected in both sectors are generally used in treasury bills, bank deposits, and stocks traded on the Macedonia Stock Exchange and foreign financial markets.

Keywords: {'name': 'Pension Funds, Insurance Companies, Financial Markets, Portfolios.'}

Authors & affiliations

Bulent Dervishi
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.1787/fmt-v2009-art5-en

Bovenberg , B.A. (2001). New Social Risks, the Life Course, and Social Policy. Pension Refor in Southeastern Europe, Center of Exellence in Finance - Ljubjana, DC: World Bank.

Augusztinovics, M., R. I. Gál, Á. Matits, L. Máté, A. Simonovits, and J. Stáhl (2002).The Hungarian Pension System before and after the 1998 Reform. In Pension Reform in Central and Eastern Europe. Vol. 1: Restructuring with Privatization: Case Studies of Hungary and Poland, ed. E. Fultz. Budapest: International Labour Office.

Chlon-Dominczak, A. (2009). Pension System and Employment of Older Workers: How to Change the Incentive Structure? The Polish Experience.” In Pension Reform in Southeastern Europe: Linking to Labor and Financial Market Reforms, ed. R. Holzmann, L. MacKellar, and J. Repansek, 163–76. Washington, DC: World Bank.

State Pension Fund, Annual Report ( 2000 – 2018)

Pension Funds Supervisory and Regulatory Authority (MAPAS).

Mutual funds annual report( 2006-2018).

Voluntary (Individual) pension law, (7/2008, 124/2010, 71/2011, 13/2013)

DOI: 10.1596/978-0-8213-7558-7

North Macedonia Stock Exchange Reports,, (2000 – 2018)

North Macedonia Central Bank Reports,(2000 – 2018)

North Macedonian Capital Market Reports, (2000 – 2018)

OECD (2000-2018). Pension Market in Focus, World Bank-The Financial Crisis and Mandatory Pension Systems in Developing Countries.

DOI: 10.1787/pension_asia-2018-en

Supervision Law , (30/2012)

Insurance Supervision and Regulatory Authority, Movements in the Insurance Market annual reports 2015-2018

Insurance Supervision and Regulation Agency, Insurance Sector Performance reports 2015-2018

Mandatory (Private) Pension Law , (29/2002, 85/2003, 40/2004,113/2005, 29/2007, 88/2008, 48/2009, 81/2009, 50/2010, 171/2010, 36/2011, 98/2012, 13/2013, 164/2013, 44/2014, 113/2015)