Pension funds international investment practice and challenges for Georgia
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Date
2023
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Ivane Javakhishvili Tbilisi State University Press
Abstract
The article discusses global investment practices for DB and DC pension plans and draws parallels with Georgian
reality. Pension reform in Georgia began in 2019. Finding instances of effective pension reform in emerging
economies proves challenging. After 5 years, since August 2023, the Georgian Pension Agency has started
investing in the global financial markets. The agency is tasked with maximizing pension savings through portfolio
management, primarily to protect savings from inflation. With the consideration of best international practices,
the investment mandate of the Georgian Pension Agency should be further expanded, and the riskiness of
the investments should be increased within reasonable limits. The agency should be given more flexibility in
setting limits for placement in low-risk, medium-risk, and high-risk assets to reflect the changing situation; otherwise,
it is difficult to imagine keeping up with inflation.
Description
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Keywords
Citation
VIII International Scientific Conference: "Challenges of Globalization in Economics and Business", Proceedings , Tbilisi, 2023, pp. 394-403