Long-Term Rates of Interest in the Valuation of a Pension Fund

1976 ◽  
Vol 21 (03) ◽  
pp. 286-340 ◽  
Author(s):  
C. D. Daykin
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
Insurance Companies ◽  
Common Misconception ◽  
The Future

1. It seems to be a common misconception outside the actuarial profession that those within that illustrious body are mysteriously able to peer into their crystal balls and come up with prophetic answers about the future progress of pension funds, insurance companies and other allied matters. The appearance of an actuarial report with its air of finality and disclosure of a definite surplus, deficiency, bonus declaration or whatever it may be, only endorses the impression that the actuary is reporting on the unique and unquestionable answer to the problem in hand.

scholarly journals Polish Pension Funds Investment - is There A Place For Real Property in A Portfolio?

2010 ◽  
Vol 9 (1) ◽  
pp. 151-166
Author(s):  
Magdalena Zaleczna ◽  
Rafał Wolski
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
Capital Allocation ◽  
Portfolio Diversification ◽  
Financial Resources ◽  
Constant Flow ◽  
Real Property ◽  
Return Levels ◽  
Entire Economy

Polish Pension Funds Investment - is There A Place For Real Property in A Portfolio?The pension fund investments should be characterised by a long term, low risk and profitability, which implicates the necessity of portfolio diversification. In general, pension funds having regular long-term contributions should develop the long-term policy and its effects would be responsible for the economic position of their future beneficiaries. The ways of capital allocation are also critical in terms of the entire economy, as a constant flow of financial resources provided by pension funds stimulates the activity of its recipients. The typical assets in a pension fund's portfolio in the developed economy are stocks, bonds and real property owing to low (negative) correlation between these assets and their diversified potential. The legal investment limits imposed on the Polish pension funds exclude direct investment in real property, which is responsible - in the authors' opinion - for the lower level of diversification and hinders the risk reduction. The authors analyze the Polish pension fund portfolios focusing on risk and return levels. The aim of the study is to find the answer to the important question about the results of hypothetically added real property to the portfolios of pension funds.

Evaluating the impact on saving of tax-favored retirement plans

2013 ◽  
Vol 13 (1) ◽  
pp. 62-87 ◽  
Author(s):  
MONICA PAIELLA ◽  
ANDREA TISENO
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
Retirement Plans ◽  
Household Saving ◽  
Pension Schemes ◽  
The Social ◽  
Recent Reform ◽  
The Impact ◽  
Retirement Wealth

AbstractThis paper exploits a recent reform of private pension schemes in Italy to identify the impact on household saving of tax-favored retirement saving plans. The reform was part of the restructuring of the social security system and was aimed at rising private long-term saving by making pension funds more attractive and convenient. We control for unobserved saver heterogeneity and a central focus is on substitution across saving instruments. We find that the pension fund legislation had a strong effect on the allocation of saving and triggered substantial substitution of non-tax-favored non-retirement wealth for tax-favored pension funds. In contrast, we find that it had little, if any effect on household saving flows. Our findings also suggest that the provision of ‘closed’ pension funds might significantly affect the decision to invest in private retirement schemes.

Many Happy Returns? Investment Governance and the Political Economy of Time in UK Pensions Provision

2021 ◽  
pp. 209-246
Author(s):  
Craig Berry
Keyword(s):  
Political Economy ◽  
Financial Institutions ◽  
Capital Investment ◽  
Pension Funds ◽  
The Political ◽  
Private Pensions ◽  
Pension Schemes ◽  
The Future ◽  
The Uk

We are increasingly conscious that private pension schemes in the UK are primarily financial institutions. UK private pensions provision has always been highly financialized, but the individualization of provision means this dynamic matters more than ever to retirement incomes. Furthermore, individualization has occurred at a time when the UK economy’s capacity to support a long-term approach to capital investment, upon which pensions depend, has declined. The chapter argues that pensions provision essentially involves managing the failure of the future to resemble the present, or more specifically present forecasts of the future. As our ability to manipulate the value of the future has increased, our ability to tolerate forecast failure has declined. The chapter details how pension funds invest, and how this has changed, and provides an original understanding of several recent attempts to shape pensions investment, ultimately demonstrating the limitations of pensions policy in shaping how provision functions in practice.

On Staff Pension Funds: The Progress of the Accumulation of the Funds; The Identity of a Valuation with The Future Progress of a Fund; The Manner of Dealing with Funds Which are Insolvent; and Sundry Observations

1911 ◽  
Vol 45 (2) ◽  
pp. 149-229 ◽  
Author(s):  
Henry William Manly
Keyword(s):  
Pension Fund ◽  
Presidential Address ◽  
Pension Funds ◽  
Natural Growth ◽  
Excellent Service ◽  
The Future

1. Mr. James John M’Lauchlan has done excellent service, in his Presidential Address to the Faculty of Actuaries on the 30th of November 1908, by drawing attention to the natural growth of a normal Pension Fund, and the necessity of accumulating large invested funds during the first 40 or 50 years of its existence, in order to provide for the heavy liabilities which will then be maturing for payment. He has done this by a few simple and easily understood illustrations involving a very considerable amount of accurate calculations which do not appear in the work.

scholarly journals Private Pension Fund Performance and Comparison with Basic Investment Instruments in Turkey

2015 ◽  
Author(s):  
Turgut Özkan ◽  
Özge Demirkale
Keyword(s):  
Pension Fund ◽  
Fund Performance ◽  
Pension Funds ◽  
Private Pension ◽  
Portfolio Performance ◽  
Social Expectation ◽  
The Social ◽  
Retirement Funds ◽  
Additional Income

In 2001, after the preparation of legal infrastructure in Turkey, private pension fund system started to be complementary to the Social Security system. There are many expectations from the private pension fund system both socially and economically. Social expectation is to direct individuals to alternative investment instruments to provide additional income for retirement. Economic expectation is to provide long-term funding to support the economic development. Pension fund companies have the most important responsibility to meet these expectations. In this study, the profits of investment instruments and individual pension funds are compared in a long term perspective, using three basic portfolio performance measures. The term between January 2004 and September 2014 have been considered. Investment alternatives have been discussed in detail. BIST100, deposit, gold and currency basket (USD+EUR) are the investment instruments that are compared with individual pension funds. In addition, individual pension funds have been analyzed on company basis and the achievements of the pension fund companies have been revealed during the term mentioned above. According to our analysis, it has been concluded that personal retirement funds lost value considerably, especially due to inflation.

scholarly journals Pension Fund Corporate Engagement

2004 ◽  
Vol 59 (1) ◽  
pp. 142-171 ◽  
Author(s):  
Gordon L. Clark ◽  
Tessa Hebb
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
Management Decision ◽  
Responsible Investing ◽  
Global Standards ◽  
Management Decision Making ◽  
Anglo American ◽  
Investment Portfolios ◽  
The Impact

Pension fund capitalism is a new, albeit evolving, stage of Anglo-American capital market development. It is marked by the ability of pension funds to aggregate the widely disbursed ownership of beneficiaries and therefore act as single entities with a unified voice. Pension funds within their investment portfolios are increasingly using this voice to engage companies. Such corporate engagement in its broadest definition is the use of one’s ownership position to influence company management decision making. Corporate engagement brings together four distinct underlying currents: first, the increased use of passive index funds; second, the corporate governance movement; third, the growing impact of socially responsible investing; and, finally, the impact of new global standards. At its best corporate engagement offers a long-term view of value that both promotes higher corporate, social and environmental standards and adds share value, thus providing long-term benefits to future pension beneficiaries.

scholarly journals “Cult of Equity”: Actuaries and the Transformation of Pension Fund Investing, 1948–1960

2015 ◽  
Vol 89 (2) ◽  
pp. 281-304 ◽  
Author(s):  
Yally Avrahampour
Keyword(s):  
Twentieth Century ◽  
Corporate Governance ◽  
Pension Fund ◽  
Pension Funds ◽  
Investment Policy ◽  
Insurance Companies ◽  
Investment Trusts ◽  
Fund Investment

This article examines the mid-twentieth-century transformation of U.K. pension fund investment policy known as the “cult of equity.” It focuses on the influence exercised by the Association of Superannuation and Pension Funds over actuarial and corporate governance standards, through actuaries who were members of its council. This intervention led to increasingly permissive actuarial valuations that reduced contributions for sponsors of pension funds investing in equities. Increased demand for equities required pension funds to adopt a more permissive approach to corporate governance than insurance companies and investment trusts, and contributed to declining standards of corporate governance.

scholarly journals PORTFOLIO AND BENCHMARK RETURNS OF PRIVATE PENSION FUNDS: A COMPARATIVE ANALYSIS FOR TURKEY

2020 ◽  
Vol 8 (5) ◽  
pp. 3891-3910
Author(s):  
Fatih KAYHAN ◽  
Mehmet İSLAMOĞLU ◽  
Mehmet APAN
Keyword(s):  
Capital Market ◽  
Pension Fund ◽  
Pension System ◽  
Pension Funds ◽  
Private Pension ◽  
Regulatory Structure ◽  
Portfolio Returns ◽  
Pension Fund Management ◽  
Portfolio Structure

The purpose of this study is to ascertain whether pension fund returns are in line with benchmark returns taking into account the regulatory structure in Turkey. The methodology of the study is the cumulative portfolio returns. Data is retrieved from TEFAS Platform and official web site of Capital Market Board of Turkey. Portfolio and benchmark of pension funds are compared. Only standard pension funds are covered within the scope of voluntary pension funds of Turkey. Findings are as follows; Portfolio returns and benchmark returns are in line significantly. The results are partly attributable to the regulations about pension fund management and portfolio structure. The paper also shows that in the long term, the volatility of returns decreases and returns prove to conform with the primary purpose of the private pension system.                            

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