Journal of Applied Finance & Banking

Strategic Asset Allocation, Risk, and Long-Term Performance of a Pension Fund: Evidence from Kosovo

• [ Download ]
• Times downloaded: 91

• Abstract

   

  This study examines the Kosovo Pension Savings Trust (KPST) as a long-term institutional investor operating within an emerging financial system. The paper analyzes the institutional framework, governance structure, and investment philosophy of the fund, and evaluates its evolution in terms of asset growth, contributor accumulation, and structural transformation. Particular attention is given to long-term investment outcomes, including portfolio performance, stability, and resilience during periods of market stress. The analysis further investigates institutional constraints, regulatory influences, and strategic asset allocation discipline, highlighting how governance and risk tolerance shape investment behavior. Beyond portfolio performance, the study evaluates the broader economic role of the pension fund, including its contribution to capital market development, international diversification, and long-term savings transformation. The findings suggest that strong governance, disciplined strategic allocation, and long-term investment orientation are key determinants of institutional performance and financial stability in emerging economies.

   

  JEL classification numbers: G11, G23, E22, O16.

  Keywords: Pension Funds, Institutional Investing, Asset Allocation, Emerging economies, Financial market development.