scholarly journals Long-Term Sustainable Investment for Retirement

2021 ◽  
Vol 13 (9) ◽  
pp. 5000
Author(s):  
Iqbal Owadally ◽  
Jean-René Mwizere ◽  
Neema Kalidas ◽  
Kalyanie Murugesu ◽  
Muhammad Kashif
Keyword(s):  
Mutual Funds ◽  
Performance Metrics ◽  
Retirement Income ◽  
Retirement Plans ◽  
Full Account ◽  
Investment Performance ◽  
Management Fees ◽  
Sustainable Investment ◽  
Managed Funds

We consider whether sustainable investment can deliver performance comparable to conventional investment in investors’ long-term retirement plans. On the capital markets, sustainable investment can be achieved through various instruments and strategies, one of them being investment in mutual funds that subscribe to ESG (environmental, social, and governance) principles. First, we compare the investment performance of ESG funds with matched conventional funds over the period 1994–2020, in Europe and the U.S. We find no significant evidence of differing performance (at 5% level) despite using a number of investment performance metrics. Second, we perform a historical backtest to model a UK personal retirement plan from 2000 till 2020, taking full account of investment management fees and transaction costs. We find that investing in an index-tracker fund overlaid with ESG screening delivers a pension which is 10.4% larger than is achieved if the index-tracker fund is used without screening. This is also 20.2% larger than is achieved by investing in a collection of actively managed funds with a sustainable purpose. We conclude that an ESG-screened long-term passive investment approach for retirement plans is likely to be successful in satisfying the twin objectives of a secure retirement income and of sustainability.

Asset Owners, Investment Management, and Commitment: An Organizational Framework

2019 ◽  
Keyword(s):  
Management Practices ◽  
Performance Metrics ◽  
Investment Strategy ◽  
Management Problem ◽  
Investment Management ◽  
Investment Performance ◽  
Principal Agent Problem ◽  
External Relationships ◽  
Asset Managers

This article focuses on asset owners, such as pension funds, and their models of investment management and describes the choice between insourcing, outsourcing, and re-intermediation. Drawing on the principal-agent problem and emphasizing the challenges facing asset owners when attempting to realize value from asset managers, the authors identify the dimensions of the management “problem.” Implications are drawn for the management practices of asset owners and the implementation of investment strategy combining in-house capabilities with external relationships. The authors also identify a set of metrics of performance that is consistent with superior long-term investment performance metrics to a range of asset owners, large and small.

scholarly journals Do actively managed funds perform better than index funds? A test in the Canadian market

2016 ◽  
pp. 163 ◽  
Author(s):  
C. Alteen ◽  
Veit Wohlgemuth
Keyword(s):  
Mutual Funds ◽  
Low Cost ◽  
Cost Index ◽  
Index Funds ◽  
Equity Mutual Funds ◽  
The Us ◽  
Canadian Market ◽  
Managed Funds ◽  
Index Investing

Actuality of the study: Mutual funds are a favourite investment product among many investors. They provide a simple means of diversification, especially for those with smaller amounts of capital, and the popularity of mutual funds has increased with the success of the marketing efforts behind them.Purpose: This study evaluates the performance of actively managed and index mutual funds within the Canadian equities market.Findings: As index investing has increased in popularity, and other markets have become more connected and open, there is a need for research on equity mutual funds in countries outside the US.Originality / Value: The majority of previous research on index funds and actively managed mutual funds is focused on the US market and related indexes such as the S&P 500.Practical implications: This study suggests that, on average, active funds in Canada fail to beat their benchmarks net (but not gross) of the common fee or management expense ratio. Surprisingly, this research finds no positive relationship between higher fees and better gross performance. Actively managed funds also have poorer performance over the long term. This study finds that investors would be better off purchasing low cost index funds as they provide a more secure return.Future research: This study endorses research on other markets with inclusion of additional variables in order to explain gross performance and secure returns.

scholarly journals An Empirical Analysis of Dairy Farm Reinvestment Versus Tax-Deferred Plans for Retirement Income

1984 ◽  
Vol 13 (1) ◽  
pp. 1-6 ◽  
Author(s):  
Loren W. Tauer
Keyword(s):  
Mutual Funds ◽  
Empirical Analysis ◽  
Dairy Farm ◽  
Common Stock ◽  
Retirement Income ◽  
Retirement Plans ◽  
Rates Of Return ◽  
Farm Business

This study empirically compares the retirement values of dairy farm investments to tax-deferred retirement investments that are funded with bank certificates of deposit or common stock. For a successful dairy farm, the results indicate that tax-deferred retirement plans that generate rates of return similar to certificates of deposit or common stock mutual funds are probably not as good an investment as reinvesting farm earnings back into the farm business.

PLAC Network Best Practices Series: Target-Income Design of Incentives, Benchmark Portfolios and Performance Metrics for Pension Funds

2021 ◽  
Author(s):  
Daniel García-Mantilla
Keyword(s):  
Best Practices ◽  
Interest Rates ◽  
Conversion Rate ◽  
Pension Fund ◽  
Performance Metrics ◽  
Retirement Income ◽  
Fund Management ◽  
Management Fees ◽  
Pension Fund Management ◽  
Regulatory Incentives

In defined contribution systems, at the end of the accumulation phase the assets in the retirement account are exchanged for a pension. The conversion rate from assets to retirement income (which depends on the level of interest rates) is very volatile, and its variations constitute the main investment risk facing pension fund affiliates. In this sense, performance metrics, management fees and benchmark portfolios that focus on assets (and asset returns) and ignore the variations in the conversion rate, embed several problems: i. they send wrong signals to regulators, fund managers and workers, ii. they provide wrong incentives to pension fund management companies, and iii. they leave pension fund affiliates exposed to their largest risk factor, even during the last few years preceding their retirement date. We find that regulatory incentives with these fundamental problems are ubiquitous in the region. The document presents a series of best practices, and delivers a practical set of tools to assist regulators and supervisors in designing a framework that improves security and sufficiency of retirement income, and provides relevant and timely information to pension fund affiliates. The framework achieves that by fostering an integration of the accumulation and the payout phases, and an alignment of the regulatory incentives for pension fund management companies with the retirement income objectives of pension fund affiliates. Using historical data from Colombia as a case study, the document illustrates and quantifies the improvements in terms of pension benefits and retirement income security that the proposed framework could bring.

Portfolio Choice toward Long-Term Mutual Funds in Thailand

2017 ◽  
Author(s):  
Adisorn Promkaewngarm ◽  
Jirarat Pipatnarapong ◽  
Natdanai Aleenajitpong ◽  
Sompong Promsa-ad
Keyword(s):  
Mutual Funds ◽  
Portfolio Choice

scholarly journals The Diamond League athletic series: does the air quality sparkle?

2021 ◽  
Author(s):  
James R. Hodgson ◽  
Lee Chapman ◽  
Francis D. Pope
Keyword(s):  
Particulate Matter ◽  
Air Quality ◽  
Performance Metrics ◽  
Urban Air Pollution ◽  
Quality Data ◽  
Performance Variation ◽  
Short And Long Term ◽  
Respiratory Conditions ◽  
Race Performance

AbstractUrban air pollution can have negative short- and long-term impacts on health, including cardiovascular, neurological, immune system and developmental damage. The irritant qualities of pollutants such as ozone (O3), nitrogen dioxide (NO2) and particulate matter (PM) can cause respiratory and cardiovascular distress, which can be heightened during physical activity and particularly so for those with respiratory conditions such as asthma. Previously, research has only examined marathon run outcomes or running under laboratory settings. This study focuses on elite 5-km athletes performing in international events at nine locations. Local meteorological and air quality data are used in conjunction with race performance metrics from the Diamond League Athletics series to determine the extent to which elite competitors are influenced during maximal sustained efforts in real-world conditions. The findings from this study suggest that local meteorological variables (temperature, wind speed and relative humidity) and air quality (ozone and particulate matter) have an impact on athletic performance. Variation between finishing times at different race locations can also be explained by the local meteorology and air quality conditions seen during races.

scholarly journals Astrometric and Photometric Variability in Quasars

2009 ◽  
Vol 5 (S267) ◽  
pp. 103-103
Author(s):  
A. H. Andrei ◽  
S. Bouquillon ◽  
J. L. Penna ◽  
F. Taris ◽  
S. Anton ◽  
...  
Keyword(s):  
Strong Support ◽  
Optical Emission ◽  
Optical Observations ◽  
Massive Black Hole ◽  
Full Account ◽  
Photometric Variability ◽  
Central Engine ◽  
Relationship Of ◽  
The Relationship

Quasars are the choicest objects to define a quasi-inertial reference frame. At the same time, they are active galactic nuclei powered by a massive black hole. As the astrometric precision of ground-based optical observations approaches the limit set by the forthcoming GAIA mission, astrometric stability can be investigated. Though the optical emission from the core region usually exceeds the other components by a factor of a hundred, the variability of those components must surely imply some measure of variability of the astrometric baricenter. Whether this is confirmed or not, it puts important constraints on the relationship of the quasar's central engine to the surrounding distribution of matter. To investigate the correlation between long-term optical variability and what is dubbed as the “random walk” of the astrometric center, a program is being pursued at the WFI/ESO 2.2m. The sample was selected from quasars known to undergo large-amplitude and long-term optical variations (Smith et al. 1993; Teerikorpi 2000). The observations are typically made every two months. The treatment is differential, comparing the quasar position and brightness against a sample of selected stars for which the average relative distances and magnitudes remain constant. The provisional results for four objects bring strong support to the hypothesis of a relationship between astrometric and photometric variability. A full account is provided by Andrei et al. (2009).

scholarly journals A Hydrological Modeling Approach for Assessing the Impacts of Climate Change on Runoff Regimes in Slovakia

Water ◽  
2021 ◽  
Vol 13 (23) ◽  
pp. 3358
Author(s):  
Patrik Sleziak ◽  
Roman Výleta ◽  
Kamila Hlavčová ◽  
Michaela Danáčová ◽  
Milica Aleksić ◽  
...  
Keyword(s):  
Climate Change ◽  
Water Resources ◽  
Hydrological Modeling ◽  
Performance Metrics ◽  
Climate Change Scenarios ◽  
Reference Period ◽  
Changing Climate ◽  
Time Horizons ◽  
The Future

The changing climate is a concern with regard to sustainable water resources. Projections of the runoff in future climate conditions are needed for long-term planning of water resources and flood protection. In this study, we evaluate the possible climate change impacts on the runoff regime in eight selected basins located in the whole territory of Slovakia. The projected runoff in the basins studied for the reference period (1981–2010) and three future time horizons (2011–2040, 2041–2070, and 2071–2100) was simulated using the HBV (Hydrologiska Byråns Vattenbalansavdelning) bucket-type model (the TUW (Technische Universität Wien) model). A calibration strategy based on the selection of the most suitable decade in the observation period for the parameterization of the model was applied. The model was first calibrated using observations, and then was driven by the precipitation and air temperatures projected by the KNMI (Koninklijk Nederlands Meteorologisch Instituut) and MPI (Max Planck Institute) regional climate models (RCM) under the A1B emission scenario. The model’s performance metrics and a visual inspection showed that the simulated runoff using downscaled inputs from both RCM models for the reference period represents the simulated hydrological regimes well. An evaluation of the future, which was performed by considering the representative climate change scenarios, indicated that changes in the long-term runoff’s seasonality and extremality could be expected in the future. In the winter months, the runoff should increase, and decrease in the summer months compared to the reference period. The maximum annual daily runoff could be more extreme for the later time horizons (according to the KNMI scenario for 2071–2100). The results from this study could be useful for policymakers and river basin authorities for the optimum planning and management of water resources under a changing climate.

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.

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