WRITTEN QUESTION E-1936/01 by Robert Goebbels (PSE) to the Commission. Performance of Japanese pension funds.
Date: 2001-06-29
Institutions: European Parliament, Provisional data
Subjects: Japan, investment, regulation of investments, supplementary pension

C 40 E/142

Official Journal of the European Communities

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14.2.2002

Community measures relating to emissions from motor vehicles and to fuel quality are designed to help
meet these limit values. The Commission notes also that the Greek authorities have announced plans to
remove traffic from the historic centre of Athens.

The proposal for a Directive concerning ozone in ambient air is expected to be finally adopted this year.
A related proposal for a Directive setting national emission ceilings for certain pollutants is designed to
help achieve the standards set out in the ozone proposal (2).

A case in respect of implementation of Council Directive 1996/61/EC of 24 September 1996 concerning
integrated pollution prevention and control, by the Greek authorities is now before the Court.

(1) OJ L 313, 13.12.2000.
(2) OJ C 56 E, 29.2.2000.

(2002/C 40 E/151)

WRITTEN QUESTION E-1932/01

by Proinsias De Rossa (PSE) to the Commission

(29 June 2001)

Subject: Missing persons

Has the Commission(cid:146)s attention been drawn to the difficulties experienced by people who maintain a
voluntary contact service following the disappearance of relatives without trace? Is it aware of the costs
associated with the provision of such a service both in terms of time and expenditure and does it plan to
propose funding for such services?

Answer given by Mr Vitorino on behalf of the Commission

(26 September 2001)

The Commission is aware of the difficulties facing the people who set up the contact centres referred to by
the Honourable Member.

At present, however, it is focusing on the situation as regards missing children and teenagers.

For instance, in May 2001 it sponsored the setting-up of the European Federation for Missing and Sexually
Exploited Children, which brings together a number of organisations working in the field in various
Member States.

The Commission would also inform the Honourable Member that organisations like Child Focus, Net
Missing Persons Helpline and a number of others involved in searching for missing children have received
Community funding through the Daphne Programme. In this context, a study designed to examine the
provisions existing in this field in the Member States should be available by the beginning of next year.

Finally, the Commission would point out that Belgium has submitted a motion for a resolution calling on
the Member States to set up national monitoring centres and other centres to combat the disappearance
and sexual exploitation of children. The motion is currently being examined by the competent Council
bodies.

(2002/C 40 E/152)

WRITTEN QUESTION E-1936/01

by Robert Goebbels (PSE) to the Commission

(29 June 2001)

Subject: Performance of Japanese pension funds

At recent meeting of the parliamentary group of the Party of European Socialists, Mr Bolkestein, Member
of the Commission, expressed the view that pension funds that are free to choose their investment strategy

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perform better over ten years than pension funds that are restricted in their choice of investment. Can the
Commission provide specific examples in support of this statement?

Can the Commission also provide information on the performance of Japanese pension funds between
1990 and 2000?

Answer given by Mr Bolkestein on behalf of the Commission

(17 September 2001)

Recent studies conducted under the auspices of
the Organisation for Economic Cooperation and
Development (OECD) have compared the performance of pension funds between countries which use the
method known as management by a prudent person (prudent management) and those which impose
quantitative restrictions on investment. First of all, it should be noted that prudent management consists in
applying a qualitative approach to investment rules, that is, diversification of assets to match commitments
and not simply on the basis of standardised quantitative rules. Assets must be allocated in a prudent and
properly diversified manner, particularly as regards the issuing institution, the type of security, the country
or geographical region, the currency or the geographical sector. This is certainly not total freedom to
invest.

The results of comparative performance studies were presented by, among others, Professor E. Philip Davis
of Brunel University, West London, at the hearing organised by Parliament(cid:146)s Economic and Monetary
Affairs Committee on 6 February 2001. These studies cover the performance of pension funds over a
fifteen-year period in a number of countries. It should be noted that even a fifteen-year period does not
really correspond to the investment term of a pension fund, which is often around twenty-five years. The
studies showed that between 1980 and 1995 pension funds in the countries applying prudent
management methods recorded a real average performance which was 200 basis points higher than
pension funds in countries imposing restrictions on investments. These differences in performance lead to
cost differences, with a strong performance allowing a lower level of pension contribution.

The table below gives more detailed information broken down by country, including Japan. Unfortunately,
the Commission has no figures on the performance of Japanese pension funds between 1990 and 2000.

Estimated performance of pension fund portfolios (1980-1995)

Type
of regulation

Nominal performance

Real performance

UK

US

Germany

Japan

Canada

Netherlands

Sweden

Average

Prudent management

Prudent management (apart from Japan)

Restrictions

PP

PP

QR

QR/PP

PP

PP

QR

15,8

13,2

9,7

8,9

12,4

9,2

11,5

11,5

11,9

12,7

10,6

9,8

8,4

6,7

6,9

7,5

6,3

4,9

7,2

7,8

8,0

5,8

NB: 1. PP = management by a prudent person (prudent management); QR = quantitative restrictions on investment.

2. Japan gradually shifted from a system of quantitative restrictions to a system of prudent management at the beginning of the
1990s.

Source: Presentation by Professor P. Davis at Parliament(cid:146)s hearing on 6 February 2001.