Resumen

CHAVEZ-BEDOYA, Luis  y  RAMIREZ RONDAN, Nelson. Comparison between Front-End Load and Balance Fees in Individual Account Pension Systems. Apuntes [online]. 2016, vol.43, n.78, pp.61-88. ISSN 0252-1865.  http://dx.doi.org/10.21678/0252-1865-00430078_3.

In this present article, we develop a discrete-time methodology to compare front-end load and balance fees in the accumulation phase of a definedcontribution pension fund under a system of individual accounts. Using this methodology, we study the effect of risk aversion and other relevant variables in the performance and suitability of the aforementioned types of fees. Finally, we carry out a practical application and show the results for the Peruvian Private Pension System, including indifference values between fees and certainty equivalent ratios.

Palabras clave : Pension funds; front-end load fee; balance fee; individual accounts.