| A fund set up by a company, union, 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 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. Pension funds can employ their own fund managers or delegate responsibility to external fund managers.
|
