Analysis of the impact of non-state pension funds and management companies remuneration on the return on investing pension savings

The article is a continuation of the previously conducted study related to the assessment of the influence of various factors on the profitability of investing pension savings. The objective of the study is to assess the influence of the volume and structure of remuneration of non-state pension funds and management companies on the profitability of investing pension savings. The analysis was conducted based on the statistical data of the Bank of Russia for 26 non-state pension funds operating as an insurer for compulsory pension insurance. Multifactorial linear regression models were constructed reflecting the relationship between the profitability of investing pension savings and the selected 11 factors. The analysis showed that the following factors lead to an increase in profitability: the ratio of the fund’s remuneration to the size of pension savings of this fund, the financial result of investing pension savings per insured person, the share of the management company’s remuneration in the fund’s expenses related to investing. An increase in the variable part of the fund’s remuneration and an increase in expenses related to investing pension savings have an inverse effect on profitability. The correlation of profitability with the structure of the management company’s remuneration and the indicators determining the size of the fund was not confirmed. The analysis revealed that funds and management companies have no incentive to reduce investment costs. It is necessary to control the provisions of the agreement between a non-state pension fund and a management company at different levels of regulation in terms of forming the remuneration of the management company. It is necessary to set limits on the amount of expenses of the management company related to investing pension savings. Since the size of the fund does not affect the amount of return on investment of pension savings, the regulator must provide support measures to small non-state pension funds in the interests of insured persons.