FUNDAMENTAL PROBLEMS OF INVESTMENT FUNDS IN UKRAINE FROM THE POINT OF VIEW OF COMPLEMENTARY PENSION PROVISION OF CITIZENS

2021 ◽  
Vol 298 (5 Part 1) ◽  
pp. 57-62
Author(s):  
Illia Morhachov ◽  
Keyword(s):  
Capital Accumulation ◽  
Pension System ◽  
Fundamental Problem ◽  
Balance Sheet ◽  
Point Of View ◽  
Investment Fund ◽  
Investment Funds ◽  
Optimal Balance ◽  
Sheet Structure ◽  
Balance Structure

The relevance and urgent need for the formation of complementary pension provision for the population in Ukraine has been determined. The complementary pension provision of the citizens of the country is considered as not at all implying the complete destruction of the existing solidarity pension system, but only the formation of additional mechanisms that make the pension provision of citizens generally successful even in the existing conditions. Such a mechanism can be a set of investment funds (joint investment institutions) in the country, which will add to the existing solidarity pension system elements of capital accumulation through the activation of investment processes. The purpose of the work was to determine the fundamental problems and prospects of Ukrainian investment funds (joint investment institutions) from the point of view of complementary pension provision for citizens in Ukraine. The purpose of the work was to determine the fundamental problems and prospects of Ukrainian investment funds (joint investment institutions) from the point of view of complementary pension provision for citizens in Ukraine. The article defines that the prerequisite for effective complementary provision is the optimal balance structure, which is similar to such better analogues as the Berkshire Hathaway and the Vanguard S & P 500 ETF. It is specified that the formation of a balance sheet structure in accordance with the best foreign analogues contradicts the current regulatory framework in the country, which is a fundamental problem in the formation of complementary pension provision on the basis of joint investment institutions. It is determined that the majority of investment funds existing in Ukraine in the form of joint investment institutions (ISI) under the current legislation are not able to provide a complementary pension for citizens of the country at a sufficient level of efficiency due to the impossibility of forming an optimal asset structure. The fundamental problem of ISI in the country is the legislative restrictions on the formation of the optimal structure of their balance. The optimal balance sheet structure of the investment fund, in particular assets (dominated by shares of the world’s leading companies) and liabilities (dominated by equity and raised funds by issuing bonds) is the basis for the effectiveness of complementary pension provision.

scholarly journals Principles of Financial Stability of Investment Funds

2020 ◽  
Vol 10 (513) ◽  
pp. 301-306
Author(s):  
I. V. Morhachov ◽  
◽  
I. I. Ovcharenko ◽  
M. V. Zos-Kior ◽  
A. I. Rudiashko ◽  
...  
Keyword(s):  
Financial Stability ◽  
Balance Sheet ◽  
Bank Loans ◽  
Stock Index ◽  
Investment Fund ◽  
Individual Investor ◽  
Financial Leverage ◽  
Short Term ◽  
Investment Funds ◽  
Average Individual

The purpose of this work is to substantiate the principles of financial stability of investment funds, which are inverse (opposite) to the principles of creating financial pyramids. The elements of scientific novelty include the specification of the peculiarities of compliance with the principles of financial stability of investment funds in modern conditions in Ukraine. An investment fund is also a kind of financial pyramid, but it can be created on the basis of the principles of stability, which are the opposite of the rules of existence of fraudulent financial pyramids. The such principles are defined as: dominance of assets over liabilities and minimization of overhead costs (including advertising); income from assets must exceed the value of liabilities; use of financial leverage or formation of assets according to a certain rule, which cannot be achieved by an individual investor; transparency and controlThe economic reasons for the existence of investment funds are considered, and the reasons for the success of individual financial institutions, which are essentially the relevant funds: Vanguard S&P 500 ETF and Berkshire Hathaway, are analyzed. The structure of the balance sheet of the investment fund is determined, which allows to adhere to certain principles of financial stability and use financial leverage. It is specified that an individual investor (individual) cannot use financial leverage for investment activities in the stock market, as it cannot issue bonds. The use of borrowed funds (broker or bank loans) allows an individual investor to make only short-term speculations that are very risky. At best, the average individual investor will only succeed in reaching the level of the S&P 500 stock index, while the investment fund will be able to exceed this index through the use of financial leverage.

IPSA RE: A New Model of Data/Document Management, Defined by Identity, Provenance, Structure, Aptitude, Revision and Events

2010 ◽  
Author(s):  
Walter E. Perry
Keyword(s):  
Point Of View ◽  
Document Management ◽  
Investment Fund ◽  
Investment Funds ◽  
Net Worth ◽  
Type Definition ◽  
Data Record ◽  
Vector Weight ◽  
Definition Of ◽  
Document Stores

In the world of private (not publicly traded) investment fund dealing a very substantial portion of the data which should result from daily transactions is, and historically has always been, unavailable, misstated, or flat-out in error. Transactions are a tortuous path of one-at-a-time interactions between each of the entities with one other — the "high net worth" individuals who put up money for investment; the named investors who aggregate that money; the nominee banks where those monies are lodged (and aggregated); the marketers who solicit the named investors on behalf of particular investment Funds; the managers who allocate assets of those funds to particular investments; the Prime Brokers who execute the transactions to realize those managers' asset allocations; the custodians who hold securities in the name of those Funds; and the administrators hired to oversee and account for the business done by Funds and managers. In each interaction each of the two parties is — by definition of his role — transacting business at a different granularity than his counter-party, and in most cases with a materially different understanding of the substance of the transaction, as that substance might be formally defined with the basic semantic operators IsA and HasA. It is usual that managers (and further up the chain of documentation and accounting, administrators) do not know accurately whose money has gone into, or come out of, a given transaction nor, from the other point of view, in which particular transaction was a investor's stake in a Fund secured, and at what basis. Historically these problems are considered intractable. However, investor skepticism in the wake of recent losses and scandals, and government insistence on regulation will not allow these problems to remain unsolved, and the particulars of regulation are grounded in knowledge and transparency about whose money, and through what chain of provenance, is deployed in what exact amounts in which transactions for which investment assets at what basis. Databases and document stores depend on static, or at least general, definitions of structure or linkage: the database schema which defines a table as the particular structure of attribute columns, or the document type definition or other schematic representation of a document by the structure of its sub-entities. In any case, in databases and document stores the structural definition is not itself the instance data stored in each record nor, more exactly, an instance aggregation of instance linkages into a unique record. Yet by redefining the substance of the "data" record as just such an instance aggregation of linkages we can insure an instance record transactable across gross differences of granularity separating the parties to the transaction, and across widely different understandings of the IsA and HasA semantics of the instance transaction. As a matter of implementation, the design of Google BigTable and the API for Google App Engine applications built atop BigTable are far more hospitable than either a relational database or a document sore model to the "linksbase" design. An enthusiastic application of Ockham's Razor to linksbase implementation practices leaves me with six fundamental entity types for recording each unique linksbase instance: Identity, Provenance, Structure, Aptitude, Revision and Events. Any recorded linksbase instance may be understood as an extended arc, on the path of which my lie any number of instances of any of these entity types, each separately influencing the aggregate vector weight of the resultant arc. In other words, most specifically in contrast to the database and document store models, the cardinality of any particular attribute on an instance record is unlimited, while the permissible — even assumed — uniqueness in the structure of any instance "data" record means that the presumed cardinality of any given record type is 1. As it turns out, this "backwards" thinking about record types and the attributes upon them is particularly facilitated by the design of Google BigTable, and the implementation of an IPSA RE linksbase seems well-suited to Google App Engine.

Physical capital stock, technological upgrading and modernisation in Hungary

2005 ◽  
Vol 55 (2) ◽  
pp. 201-221 ◽  
Author(s):  
Andrea Szalavetz
Keyword(s):  
Capital Accumulation ◽  
Physical Capital ◽  
Developed Countries ◽  
Point Of View ◽  
Technology Generation ◽  
Development Policies ◽  
Specific Factors ◽  
Physical Capital Accumulation

This paper discusses the relation between the quality and quantity indicators of physical capital and modernisation. While international academic literature emphasises the role of intangible factors enabling technology generation and absorption rather than that of physical capital accumulation, this paper argues that the quantity and quality of physical capital are important modernisation factors, particularly in the case of small, undercapitalised countries that recently integrated into the world economy. The paper shows that in Hungary, as opposed to developed countries, the technological upgrading of capital assets was not necessarily accompanied by the upgrading of human capital i.e. the thesis of capital skill complementarity did not apply to the first decade of transformation and capital accumulation in Hungary. Finally, the paper shows that there are large differences between the average technological levels of individual industries. The dualism of the Hungarian economy, which is also manifest in terms of differences in the size of individual industries' technological gaps, is a disadvantage from the point of view of competitiveness. The increasing differences in the size of the technological gaps can be explained not only with industry-specific factors, but also with the weakness of technology and regional development policies, as well as with institutional deficiencies.

A renda fundiária urbana: uma categoria de análise ainda válida

GEOgraphia ◽  
2010 ◽  
Vol 10 (19) ◽  
pp. 24
Author(s):  
Adriano Botelho
Keyword(s):  
Real Estate ◽  
Urban Space ◽  
Capital Accumulation ◽  
Urban Land ◽  
Sao Paulo ◽  
Spatial Segregation ◽  
São Paulo ◽  
Land Rent ◽  
Investment Funds ◽  
The Real Estate

Resumo: Renda fundiária urbana é uma categoria pouco explorada pela maioria dos estudos mais recentes sobre o urbano. Porém, essa categoria oferece uma possibilidade de abordagem do urbano que permite a análise de fenômenos importantes, como a hierarquização dos usos do solo, o papel do setor imobiliário para a acumulação do capital e para a reprodução das relações de produção capitalistas, além de ser importante para o entendimento do processo de segregação sócio-espacial e fragmentação do espaço no urbano. Assim, levando-se em consideração os estudos passados e as dificuldades que ainda hoje permanecem, a questão da renda fundiária é retomada no presente artigo. Como forma de viabilização da análise da questão da renda fundiária urbana foi realizado um estudo de caso sobre uma modalidade de intervenção no urbano por parte do setor imobiliário em aliança com o mercado financeiro no município de São Paulo: os Fundos de Investimento Imobiliário e a Securitização de Recebíveis Imobiliários.  THE URBAN LAND RENT: A CATEGORY OF ANALYSIS STILL VALID Abstract: Urban land rent is a category little explored by most recent urban studies. However, this category offers a possible approach for urban space that allows the analysis of relevant phenomena, like hierarchy in land use, the role of the real estate industry for capital accumulation and for reproduction of relationships in capitalist production, besides its importance in understanding the socio-spatial segregation and fragmentation process. In this sense, taking into account earlier studies and difficulties that still remain, this article aims to analyse the problem of land rent. To make this analysis possible, we present a case study about a kind of urban intervention by real estate agents in association with the finance market in the city of São Paulo: Real Estate Investment Funds and Real Estate Bonus. Keywords: Urban Land Rent, Fragmentation, Socio-Spatial Segregation, Urban, Real Estate Financing, Reproduction of Capital.

Material deprivation and employment status in post-transition: Evidence from North Macedonia

SEER ◽  
2021 ◽  
Vol 24 (1) ◽  
pp. 135-152
Author(s):  
Dimitar Nikoloski
Keyword(s):  
Labour Market ◽  
Capital Accumulation ◽  
Employment Status ◽  
Material Deprivation ◽  
Point Of View ◽  
Work Intensity ◽  
Active Labour ◽  
Underlying Causes ◽  
The Unemployed ◽  
Adjustment Mechanisms

Poverty and social exclusion are often associated with unemployment, but being employed is not always sufficient to provide decent living conditions for workers and their families. In this context, the aim of this article, drawing on SILC micro data, is to assess the underlying causes of severe material deprivation in North Macedonia from the point of view of employment status, particularly the differences between employed and unemployed workers. The results show that employed workers face a much greater risk of severe material deprivation if they are positioned in the so-called secondary labour market; while the unemployed with low capital accumulation and those living in households with low work intensity face the highest risks of all. North Macedonia’s adjustment mechanisms do help cushion the consequences, but the article concludes with several policy recommendations for additional action to reduce severe material deprivation covering: education and training; active labour market policies; unionisation and collective bargaining; wage subsidies and taxation; and a statutory minimum wage.

Hong Kong Securities and Futures Commission (SFC) highlights operating, control and compliance deficiencies in asset management industry

2018 ◽  
Vol 19 (1) ◽  
pp. 63-68 ◽  
Author(s):  
Anne-Marie Godfrey
Keyword(s):  
Hong Kong ◽  
Asset Management ◽  
Service Providers ◽  
Governance Structures ◽  
Investment Fund ◽  
Extensive Experience ◽  
Investment Funds ◽  
Content Type ◽  
Best Execution ◽  
Asset Managers

Purpose To examine the nine common areas of non-compliance in managing investment funds and discretionary accounts, detailed in a Hong Kong Securities and Futures Commission (SFC) circular dated September 15, 2017, directed at SFC-licensed asset managers. Design/methodology/approach Discusses a July 2017 circular indicating the SFC’s general concerns and analyzing the following nine common areas of non-compliance cited in the September 15, 2017 circular: (1) inappropriate receipt of cash rebates giving rise to apparent conflicts of interests, (2) failure to follow investment-suitability and discretionary account mandates during solicitation, (3) failure to implement liquidity-risk management processes, (4) deficiencies in governance structures and fair-valuation procedures, (5) deficiencies in systems for ensuring best execution, (6) failure to safeguard fair order allocation, (7) inadequate controls for protection of client assets, (8) inadequate systems to comply with investment restrictions, and (9) inadequate safeguards to address market misconduct risk. Findings The nine examples of non-compliance provide a useful insight into key “problem areas” indicated to currently be of particular concern to the SFC. Practical implications All SFC-licensed asset managers would be well advised to revisit their internal governance structures and operational policies and procedures in order to ensure that they are compliant with applicable standards and requirements. Originality/value Practical guidance from a lawyer with extensive experience advising investment managers and advisers, fund administrators, trustees and other fund service providers on investment fund-related issues.

scholarly journals RESEARCH OF THE BANKRUPTCY PREDICTION RELIABILITY IN CASE TO INTRODUCE A NEW CATEGORY OF THE COMPANIES FINANCIAL POSITION

2020 ◽  
pp. 105-122
Author(s):  
Aleksandra Noskova ◽  
◽  
Aleksander Alekseev
Keyword(s):  
Fuzzy Sets ◽  
Balance Sheet ◽  
Point Of View ◽  
Linguistic Variables ◽  
Membership Functions ◽  
Financial Position ◽  
Fixed Assets ◽  
Theoretical Significance ◽  
Prediction Reliability ◽  
Accuracy Increase

The motivation for this research was the result obtained earlier by the authors in the field of developing industry models for predicting bankruptcy with high prognostic ability. The article examines the prediction reliability of the financial position of companies in the case of introducing an additional category of financial position that reflects the position between financial solvency and insolvency (bankruptcy). The authors hypothesize that the reliability of models decreases if the requirements for their accuracy increase due to the introduction of an additional category of financial position. Hypothesis testing is performed using a non-entropic approach. This approach should reduce the measure of uncertainty in terms of the uncharacteristic nature of some of the identified features of financial position relative to the initial categories. At the same time, features of financial position are defined as ranges of specific weight of balance sheet items that have positive or negative information importance. Information importance is determined based on the methods of system-cognitive analysis, implemented automatically in the EIDOS X++ system, as well as by reproducing information models using MS Excel tools. Normalization of the informational importance values of features and their interpolation allowed us to obtain functions similar to the membership functions in the theory of fuzzy sets. When constructing membership functions relative to ranges of significant balance sheet items ("Fixed assets", "Inventory", "Accounts Receivable", "Short-Term financial investments", "Retained earnings (uncovered loss)", "Accounts payable"), ranges with zero or insignificant values of characteristic functions corresponding to the initial categories of financial position are identified. This actually meant a high level of uncertainty in the prediction. The authors propose to introduce additional linguistic variables and their corresponding fuzzy sets, whose carriers are the relative scales of the above balance items, this will reduce uncertainty. A total of 5 such fuzzy sets were identified, where the researchers used the concept of "gray zone" as a linguistic variable, which was actually used as a new category of financial position. All calculations are shown on the example of fixed assets. The prognostic ability of models based on an optimized sample, where the category of the position of companies that have at least 3 out of 5 features of the "gray zone" has been replaced, is reduced, as expected, but only slightly. And in the case of reproducing algorithms of system-cognitive analysis using MS Excel tools, there is even an increase in the prognostic ability of one of the models. In fact, the hypothesis that the reliability of models decreases if the requirements for their accuracy increase was not confirmed. From an economic point of view, the theoretical significance of the obtained result is that with the help of a non-entropic approach it was possible to show the need to introduce a new category of financial position. From a mathematical point of view, the theoretical significance lies in the fact that membership functions for linguistic variables are obtained based on real data on the financial position of almost two hundred Russian companies, these reduction functions can be used by specialists in the field of fuzzy set theory in the future. The results obtained are applicable at least for the construction industry, but can also be replicated relative to other sectors of the economy when forming the corresponding samples.

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