University of Twente Student Theses


Equity home bias in Dutch industry-wide pension funds

Seidel, Laura (2014) Equity home bias in Dutch industry-wide pension funds.

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Abstract:Integration of financial markets allows investing aboard. International diversification provides with higher returns and reduces portfolio risk. However, despite the well-documented benefits of diversification many investors still hold larger proportion of domestic equity in their international portfolio, phenomenon known as home bias. This paper investigates to which extend Dutch industry-wide pension funds are exposed to equity home biased during years 2011 and 2012 by examining their individual characteristics: size, maturity and funding status. It is demonstrated that Dutch industry-wide pension funds are not exposed to home bias and therefore they pursue rational equity diversification and take advantage of the benefits of international diversification.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics
Programme:International Business Administration BSc (50952)
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