Suchergebnisse

This article is an attempt to assess the functioning of the Norwegian Government Pension Fund Global in relation to the degree of implementation of the concept's objectives of sustainable development. The aim of the article apart from this assessment is to determine significance and the benefits of the concept to the Fund and the country. To apply the hypothetical-deductive method. The concept of sustainable development has a relatively long history in Norway. Sustainable development is not just a dead regulation, but a way of thinking Norwegians. Social awareness of balance need causes of naturalness of reconciling the economic, social and environmental interest in economy. On the one hand, Fund acting within state structures, is the implementing tool of sustainable development policy. On the other, the Fund uses assumptions of the concept to achieve sustainable economic benefits. Maturity sustainable activities of the Fund contributes to the achievement of competitive advantage among other funds. The Fund is the largest Government Pension Fund in the world in terms of net assets, of which the largest part of the market value is an inflow of capital from outside. Investors deposit their funds in it because they trust to management style. Due to the global character, size and geographical or investment diversification, manifestation of sustainable practices reaches to wide-spectrum of recipients. The range of message builds the Fund and country reputation that actively suggests the only one way to sustainable development.

This article is an attempt to assess the functioning of the Norwegian Government Pension Fund Global in relation to the degree of implementation of the concept's objectives of sustainable development. The aim of the article apart from this assessment is to determine significance and the benefits of the concept to the Fund and the country. To apply the hypothetical-deductive method. The concept of sustainable development has a relatively long history in Norway. Sustainable development is not just a dead regulation, but a way of thinking Norwegians. Social awareness of balance need causes of naturalness of reconciling the economic, social and environmental interest in economy. On the one hand, Fund acting within state structures, is the implementing tool of sustainable development policy. On the other, the Fund uses assumptions of the concept to achieve sustainable economic benefits. Maturity sustainable activities of the Fund contributes to the achievement of competitive advantage among other funds. The Fund is the largest Government Pension Fund in the world in terms of net assets, of which the largest part of the market value is an inflow of capital from outside. Investors deposit their funds in it because they trust to management style. Due to the global character, size and geographical or investment diversification, manifestation of sustainable practices reaches to wide-spectrum of recipients. The range of message builds the Fund and country reputation that actively suggests the only one way to sustainable development.

Pension funds manage approximately 45% of US capital market equity capitalization, about US$7.1 trillion, and manage 55% of the Australian one, about US$0.65 trillion. Their yearly fee charges exceed US$100 billion. We ask whether US and Australian investors would earn, on average, higher net returns by investing in equity retirement funds than by investing in publicly traded passive index funds. We use twenty years of Morningstar data covering 8% and 23% of total pension assets in the US and Australia, respectively. We perform Sharpe Style analysis replicating pension funds styles by using Treasury assets and traded index funds. We find that both US and Australian investors who invest in actively managed equity pension funds would earn no higher net returns than those generated from the passive style-matching portfolios. Also, we do not find risk-adjusted abnormal returns of US equity pension funds, while we do find negative risk-adjusted abnormal returns of Australian equity pension funds, after controlling for risk using unconditional and conditional sensitivities to the Fama, French, and Carhart factors. Because ETFs (exchange-traded funds) were introduced relatively recently, sufficient data is not available for this study; ETF investments, with typically lower expense ratios, would have enhanced our results. As most retirement savings are compulsory and regulated, there are policy implications to governments, public and private employers, and pension savers. In particular, facilitating investing in traded passive index funds, or facilitating switching from actively managed pension funds to traded passive index funds would increase societal welfare by increasing retirement contribution values and might free significant human capital to productive ventures.

ABSTRACT From 2005 to 2015, the total assets managed by open private pension funds increased more than six times in Brazil, where the Free Benefit Generating Plan (PGBL) and the Free Benefit Generating Life (VGBL) represent 90% of these assets. However, private pension institutions are characterized by the collection of high management fees, thus keeping for themselves much of the benefits offered by the government as incentive for investment in this modality. High management fees are justified only when there is active management of these funds, theoretically generating higher performance: this study indicates that this is not the case in this market segment. Similar problems have been faced in other countries, such as the United Kingdom, Denmark, and Sweden, which filed investigation concerning funds that charge high management fees for active management, while they actually provide management that may be regarded as passive. This demonstrates the scale and relevance of this issue, which has been surveyed and addressed by this study. To do this, dynamic style analysis was performed, through rolling regressions, followed by Kalman filter analysis in funds from the top-five private pension institutions in Brazil. Analyzing the exposure evolution of these funds to various asset classes and the R2 generated, passivity traces were found, mainly in composite variable income funds. Such funds are precisely those that should be more actively managed, as they charge the highest management fees. This article also demonstrates it is possible to build a passive portfolio, having a very similar style and returns without statistically significant differences, but at a lower management fee (and aligned with passive funds).

ABSTRACT From 2005 to 2015, the total assets managed by open private pension funds increased more than six times in Brazil, where the Free Benefit Generating Plan (PGBL) and the Free Benefit Generating Life (VGBL) represent 90% of these assets. However, private pension institutions are characterized by the collection of high management fees, thus keeping for themselves much of the benefits offered by the government as incentive for investment in this modality. High management fees are justified only when there is active management of these funds, theoretically generating higher performance: this study indicates that this is not the case in this market segment. Similar problems have been faced in other countries, such as the United Kingdom, Denmark, and Sweden, which filed investigation concerning funds that charge high management fees for active management, while they actually provide management that may be regarded as passive. This demonstrates the scale and relevance of this issue, which has been surveyed and addressed by this study. To do this, dynamic style analysis was performed, through rolling regressions, followed by Kalman filter analysis in funds from the top-five private pension institutions in Brazil. Analyzing the exposure evolution of these funds to various asset classes and the R2 generated, passivity traces were found, mainly in composite variable income funds. Such funds are precisely those that should be more actively managed, as they charge the highest management fees. This article also demonstrates it is possible to build a passive portfolio, having a very similar style and returns without statistically significant differences, but at a lower management fee (and aligned with passive funds).

The public pension crisis has come under increasing scrutiny over the past decade as shifting demographic trends, harsh economic conditions and the very nature of pension funds have changed, and not for the better. Pension funds create valuable saving and investment tools for an individual's retirement. They make what seems like the impossible daunting task of saving sufficient funds for retirement completely feasible. All indications lead to these trends continuing, therefore pension plans need to adapt and reform. This paper is to address the pension crisis in the U.S. and intends to provide some recommendations for policy makers.

This paper used the U.S. Census Bureau pension data for the fiscal years 2005-2014 to select a sample of 15 states. The time series data will be analyzed using the MDA (Multiple Discriminant Analysis) methodology to assess if a pension plan is bound to fail. MDA is used in the banking industry as a method to predict financial distress or default of bank loans. Once the regression line is determined, it can be utilized to estimate the probability of default. This methodology will be used to determine financial health of public pensions selected in the sample.

The Multiple Discriminant Analysis model can be utilized to run a stress test on the public pension plans of those states selected in the sample. The Multiple Discriminant Analysis will enable public pensions and policy makers to somewhat predict the viability of their pensions. The contribution of this paper will be providing pre-warning signals and some policy recommendations for local governments to sustain their pension systems.