Unlocking the pension fund performance: A systematic literature review approach

Pension funds have a pivotal role in financial systems, managing significant assets and contributing to economic growth through capital market investments. Identifying the key factors that influence their performance is essential for ensuring sustainable and adequate pension systems. The paper aims to identify the determinants of pension fund performance that directly contribute to competitiveness in financial markets by enabling efficient capital allocation and improved governance. The research employed two methods: a systematic literature review (SLR) and a bibliometric analysis (BA). The results indicate that five main factors influence pension fund performance: capital market developments, fund size and investment characteristics, corporate governance, behavioural and political influences, and regulatory and legislative environment. A bibliometric analysis reveals current trends in pension fund performance research and examines the relationship between the quality of a country’s pension system and the origin of relevant research. The results provide valuable insights for fund managers, policymakers, and other stakeholders, thereby enhancing the decision-making process and deepening the understanding of the implications for pension fund performance, pension systems, and pension beneficiaries.