FACTORS OF PRIVATE PENSION FUNDS INFLUENCING FINANCIAL MARKET

The article analyzes factors of pension funds as well as pension funds` impact on country` s financial market. The most important factors, which are mostly analyzed and examined by the scientists, are: the size of funds, the regulation of funds, the professional background of fund's trustees and the prevalence of funds. Influence of these factors on the financial market reveals through investment strategies of pension funds. The more pension funds are successful in risk management, the more aggressive investment strategies can be used, influencing development not only of bonds, but also development of stocks and other alternative asset markets. The growth of pension funds and more effective risk management strengthen the role of pension funds as stable long-term investor.