Relationship Between Investment and Cashflow: Evidence from Lewellen and Lewellen (2014

A Relationship Between Investment And Cashflow
Lewellen and Lewellen (2014), on the other hand, provides new evidence in line with Fazzari et al
(1988). They find that, after controlling for market–to–book ratio, it is possible to find a strong
relationship between investment and cashflow. They also provide evidence that when companies are
the more probable to be financially constrained – because of insistently negative free cashflow,
recurrent low profits, working capital or low dividends – are the most sensitive to cashflow.
However, for firms classified as unconstrained, investment is only weakly related to market–to–
book and, in fact, after controlling for expected cashflow the relation becomes negative. In addition,
for unconstrained firms, a great part of the relation between investment and cashflow can be
credited to investment opportunities which are imperfectly captured by market–to–book. For
constrained firms, only a small part of the investment–cashflow sensitivity appears to be explained
by noise in the proxy of q. A corporate pension plan is an arrangement between a firm and its
workers which affords funding for the workers ' retirement. This fund can be financed in many ways
and when the employee retires he will receive monthly payments financed by the fund. In most
cases, the periodically contribution to the fund is made by both employer and employee until the
employee retirement date. Pension funds can be distinguished by the way that the benefit is
promised, and, consequently, by the way that funding
... Get more on HelpWriting.net ...

Institutional Markets : Institutional Investors
Institutional investors are any organizations or persons which collect quite number sums of money
to invest in securities and also control a collection of share amounts to qualify for special treatment
and less regulation. They can also include operating companies that decide to invest their profits to
some degree in these types of assets. Insurance companies, mutual funds and pension funds are
some examples of institutional investors. These institutional investors need to face some regulations.
"Institutional investors always participate in private placements of securities due to their
sophistication, in which certain aspects of the securities laws may be inapplicable."
These institutional investors play role in the economy is to act as highly specialized investors on
behalf of others. For example, an employee will have a pension from his employer as the employer
gives that person 's pension contributions to a fund and the fund will be used to buy shares in a
company, or some other financial product. Funds are greatly useful because they will hold a broad
portfolio of investments in many companies. This spreads risk, so if one company fails, it will be
only a small part of the whole fund 's investment.
Types of Institutional Investors in United Kingdom.
In Britain, pension funds have become the largest single category of institutional investor, gradually
increasing from 3% of the market in 1957 to 31% in 1992 as they have largest corporate pension
plans with supported

Why Governments Concerned Themselves With Pension Provisions
1. Introduction Within this assignment four parts will be put forward on discussion: Firstly, the
reasons for why governments concern themselves with pension provisions will be stated. Secondly,
the advantages and disadvantages of PAYG compared with the main types of pension schemes
available for employees. Thirdly, the main problems of PAYG pension schemes and especially their
causes and solutions will be examined. Finally, the recent reforms in the UK will be analysed and
compared with other countries' reform. 2. Why do governments concern themselves with pension
provisions? There are several reasons why governments concern themselves with pension
provisions: Firstly, asymmetric information1 is a common form of problems in the financial markets
as well as in the pension schemes because it may lead to moral hazard2. In Arnold's (2012) opinion,
asymmetric information may result in four problems: firstly, participants do not clear about whether
their money is under too much risk or not (safety and soundness). Furthermore, they do not know if
the people who manage the schemes will have hidden corrupt intensions (conflicts of interest).
Moreover, the pension schemes may give the managers a chance to make large profits in a short
time (fraud). Finally, participants are also uncertain if the people in charge will be competent in the
job (incompetence). These four problems will result in participants' losses (Arnold 2012). Secondly,
eliminating poverty is one of the

Case Analysis: Dave Armstrong (a)
Organisational Behavior
Case Analysis: Dave Armstrong (A)
Case Summary:
This case is about Dave Armstrong, a 29 year old second year MBA student of Harvard Business
School. Immediately after his graduation from a small liberal arts college in Texas, he started
working for Thorne Enterprises as a computer Programmer. After eighteen months in the job, he quit
to go into life insurance business in Amarillo. He applied to Harvard Business school but hadn't
considered what he would do, once accepted, he decided to go there as he and his wife wouldn't
have to compromise on their lifestyle as he would still be receiving renewal income from his old
policy holders.
Now, he is 3 months away from his graduation and he has three job prospects ... Show more content
on Helpwriting.net ...
Dave would get 45000 dollars as securities analyst till the original position is available in 6–12
months. Dave's wife wants him to choose this job as this does not require any investment and is a
fairly secure job not involving any risk or uncertainty.
According to Dave's perspective, to satisfy his personality aspects and aspirations, he should choose
Job A. However, according to his wife's wishes, she would want him to choose Job C, as it is safer
and more reliable.
Hence, we must do a weighted analysis of all his important attributes and do a comparison of all the
three jobs. We also need to understand that Job A and Job B will have 2 different situations each, a
situation if all goes well (high) and a situation if nothing goes well (low)
Weight | Attributes | Job AHigh | Low | Job BHigh | Low | Job C | 2 | Equity | 2 | 0 | 1 | 0 | 0 | 4 |
Bonus | 4 | 0 | 3 | 0 | 0 | 3.5 | Salary security | 2 | 1 | 3 | 2 | 3.5 | 5 | Fun and Flexibility | 5 | 3.5 | 4 | 2.5 |
0 | 3 | Travel | 1.5 | 1.5 | 3 | 2 | 0 | 4.5 | Contacts | 2.5 | 1.5 | 4.5 | 3 | 3 | Ideas | 3 | 2.5 | 3 | 2 | 1 | |
Probability | 0.2 | 0.8 | 0.4 | 0.6 | – | | Total | 15.35 | 31.8 | 33.1 | 27 | 15.25 |
According to the calculations in the table above, Job A =47.15, Job B=60.1, Job C=15.25.
Therefore, Dave should choose Job B as it has the highest value according to the weighted analysis
of his desired

Pension Reforms Highlights : Rhode Island And Michigan
Pension Reforms Highlights: Rhode Island & Michigan In order to make a more comprehensive
analysis of the two cases presented in this report the information is going to dissected into three
categories: Policy, Politics and Public Opinion in order to convey a more detailed view of the
reform process. Rhode Island Background As early as 1993, the net present value of the State
Employees' pension fund represented only about 72 percent of the expected liabilities. The Teachers'
fund was in worse shape. Some modest attempts were made by the General Assembly to improve
the situation in the mid–2000s, such as raising state employees' minimum retirement age. While
these changes slowed the decline of Rhode Island's pension fund stability, they did ... Show more
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2. Implemented a Hybrid Defined Benefit (DB) and Defined Contribution (DC) Plan: The hybrid
DB/DC plan aims to reduce DB liabilities with a DC fund while also maintaining support from
union groups who desire the security of a DB system. 3. An increase in retirement age for current
employees so that it matched Social Security's age thresholds. 4. Extended Amortization Rate of
Liabilities. 5. A plan to help local governments bring their unfunded pension liabilities under
control. Reforms by itself is not enough, it is crucial to assure that the legislature always make their
legally required contributions to the pension fund. Public Opinion Roughly 62 percent of state
employees are union members, meaning that law makers in the GA are generally wary of pushing
too hard on publicly unpopular policy reform that affected unionized labor. Pension–reform allies
decided that before they could effectively move pension reform through the General Assembly, they
needed to ensure that everyone was clear on the risks to the system and on what reform was trying
to accomplish. They determined that forming coalitions of the interested parties in advance of the
legislation would effectively lay the groundwork for reform specifics Reformers choose to
campaign for the reform ideas they settled on to gain buy–in from stakeholders prior to any
legislative debate. A blue ribbon panel "Pension Advisory Group" was a driving

Douglas Harvey Barber V Guardian Royal Exchange Report
Introduction
The aim of this report is to investigate the Douglas Harvey Barber v Guardian Royal Exchange case.
The main findings of this report is to see what effect Douglas Harvey Barber had on the financial
services industry before and after his case.
Background
Douglas Harvey Barber
q Barber Douglas Harvey was born on 29th September 1928 in Derbyshire. q He died on 26th May
1989 at age 60. q He worked for Guardian Royal Exchange until he was made redundant at age 52.
q He was a member of his companies "Contracted Out", Non Contributory, Occupational Pension
Scheme that had retirement ages Of 57 for women and 62 for men q Members made redundant
within 5 years of retirement were given an immediate early retirement ... Show more content on
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(4) Are Article 119 and the equal pay directive of direct effect in the circumstances of this case?
(5) Is it material to the answer to Question 3 that the woman ' s right to access to an immediate
pension provided for by the Severance Terms could only be satisfied if she qualified for an
immediate pension under the provisions of the private occupational scheme in that she was being
treated as retired by the Guardian because she was made redundant within seven years of her normal
pension date under the pension scheme?"
As Douglas Harvey Barber died while these proceedings were in progress. Since the Court of
Appeal permitted his widow Mrs Pamela Barber, to continue the proceedings in her name, for and
on behalf of Mr Barber ' s estate, these proceedings for a preliminary ruling followed the usual
course.
The New Ruling
ØBecause Pension Schemes would need to be funded to a much higher level to allow men to retire
at 60 it was decided that women's retirement age would have to be raised to 65.
ØThus the Old Age Pension (OAP) for women is currently increasing over time to age 65.

ØThe issue of pensions being deferred payment, created a whole new look at Occupational Pension
Schemes. The following issues were

Analysis Of D & O Renewals
Try to address D&O renewals in 2016, without the professional guidance of your virtual portfolio
strategist, RiskPro Partners, and you could find yourself drowning in a sea of fiduciary, liability
variables, not the least of which begins with the target, market segment of your company.
Risk insurance is showing trends of convergence among both publicly traded and privately owned
companies. However, D&O boilerplate liability, insurance programs often still differ between
carriers in terms of their liability product offerings regarding policy provisions that are more broad
than standard and also those that are more restrictive than standard.
Therefore, there is a vital need for a professional, in this arena and in other areas, when developing
insurance packages suited to a company's unique requirements.
Directors and officer's policies are carefully negotiated contracts, between an insurance company
and their prospective client, whose agenda must cover the gamut of possible risks for the term of the
policy they purchase. A few of the main areas for new D&O insurance clients, and for those
considering a change in carriers, to consider are as follows:
Applications
Declarations page
Insuring clauses
Definitions
Exclusions
Coverage agreements
Claim provisions
Endorsements
In addition, some of the areas in which most D&O insurance carriers have framework programs are:
Employment practices liability
Fiduciary liability

Shareholder Activism : A Policy Of Vigorous Action Essay
The Concise Oxford Dictionary, ninth edition defines the term "activism" as a policy of vigorous
action in a cause, especially in politics. From such viewpoint, shareholder activism has its origins in
politics. Terms like "activists" and "activism" are commonly used in politics. Hence, shareholder
activism can be understood as an intensive action taken by an owner or a person with an interest in a
company. Another definition from Wikipedia mentions that activist shareholders use an equity stake
in a corporation to put pressure in various forms on the management board. Haigh et al (2004)
identifies shareholder activism as a process by which shareholders of a listed firm, under the
provisions of securities legislation, can demand members to meet and vote on specific resolutions.
Therefore, shareholder activism is used as a tool to draw the attention of the firm's managers and the
board of directors (Schwab and Thomas, 1998). Differently, Guay et al. (2004) describes
shareholder activism as a mixture of socially responsible investment, corporate governance and
shareholder capitalism. A shareholder can ask firms be sustainable and to comply a good corporate
governance. Smith (1996) states that shareholder activism includes monitoring and attempts to
change the firm's controlling structure that is not pursuing the goal of maximizing the wealth of its
shareholders. Generally, shareholder activism relates to shareholder's rights to participate to a
certain level of

Employee Pension Plans
An employee wants to have an amount of money for consumption after retirement that is certain. An
employee can achieve this on his own by saving or investing during his career life and for this to be
achieved the employee requires discipline and knowledge about investing. However, individuals are
not generally equipped to make decisions for their future retirement, nor do they want to make these
decisions (Aaron, 1999).
To solve these problems an employee can acquire a pension policy at a pension fund. A pension
fund hires employees with the knowledge about investing and imposes the discipline of saving an
adequate amount of money each year. Also, a pension fund can make use of economies of scale by
pooling many employees, which lowers many costs for example administration costs.
Kakes and Broeders(2006) talk about the different characteristics that a pension plan has that is the
level of the benefit, the certainty of the benefit, the level of the contribution and the volatility of the
contribution. Between these characteristics there exists a trade off. The more certainty given to the
benefit, the higher the contribution will be, also the higher the benefit the higher the contribution
needs to be. These characteristics can be present in different proportions in different pension plans.
The main question that a pension fund faces is : which combination of characteristics do participants
prefer ?
In the recent financial crises of 2008, Goudswaard, Beetsma, Nijman, and

The Case Of Ethiopian Social Security Affairs
Research Paper Proposal
[
Title: Pension Fund Management in Ethiopia: the case of Ethiopian Social Security affairs
Name of advisor: gerba............. Prepared by
1. Hirut Fikadu
2.
3.
February, 2015
1.1 Background of the paper
Globally, there are a lot of people who need help to sustain their life and to fulfill their basic
necessity. Especially, as they become old in age and their ability to generate income weaken the
reliance of citizens on government increases. Government on the other hand should prepare a way to
help the citizens. In essence, unless one takes a libertarian view, it is the role of the government to
ensure that people do not reach old age being poor ... Show more content on Helpwriting.net ...
A pension plan, which is one part of Social Security, is a program set up by an employer, union or a
government that provides regular income payments to retired payments meeting the conditions set
forth in the plan (Abebe, 2003). As to meet the need of beneficiaries at retirement years, pension
plans, require a sustainable fund. In any pension plan, pension fund is comprised of the assets
accumulated to pay retirement incomes
In Ethiopia, pension plan as part of the nation's Social Security programs give income security in
old age, disability or death. The Ethiopian Social Security Agency (SSA), which is responsible for
administering the plan, has potential to invest the pension funds due to its surplus funds and the
nature of its long horizon liability. In light of the contingent and long–term nature of its financial
obligations, SSA is expected to build and manage a portfolio that will generate long–term returns
that contribute to the future pensions of today's working members (Gebrehiwot, 2007).
1.2 Statement of the Problem
According to the 2003 International Social Security Association (ISSA) report that covers African
countries including Ethiopia, it pointed out that, the investment of most of SSIs in Africa have
registered negative real growth rates. This underperformance is attributed to a number of reasons,

including macro–economic factors, unfavorable market conditions, poor portfolio planning, limited
expertise

Macau Pension Fund
Table of Contents Introduction 3
1.0 Introduction
Social Security Fund (SSF) was established on 23 March 1990 to provide basic social security for
the Macau residents. According to the Act 84/89/M, Social Security fund would provide subsidies or
assistance for unemployed, sick and retired people. This was the so–call "the first tier of social
security". At the same time, SSF was positioned as a financially independent fund under the local
government.
In Macau, Pension fund is included in the SSF, and there is no separation between the management
of pension fund and SSF. Instead, pension fund is considered as an expense from the aspect of
financial management. All the working people, including non–permanent and permanent ... Show
more content on Helpwriting.net ...
During the financial crisis, there was even a negative return recorded in 2008. By ignoring year
2008, there is still a downward trend of the return.
According to the 2010 annual report of SSF, 72.43% of SSF balance was deposited into local bank,
the remaining proportion was entrusted to fund managing company for only low–risk investments.
Under the fix–rate hedging between MOP and HKD, the interest rate of Macau is close to interest
rate in Hong Kong, which is similar to US interest rate. Since the 2008 financial crisis, Fed has
applied the ultra low interest rate and the interest rate is believed to be maintained until 2014. So, a
72.43% of deposit in an investment portfolio is reasonably considered as inefficient.
3.4 Irregular government subsidies
In 2008 Macau government introduced the "Wealth Partaking Scheme". Each permanent resident
will receive the cash check issue by government and each non–permanent residents would received
60% of the partaking amount to permanent resident. The aim of the scheme is to share the result of
economic development under the high–inflation economy. However, in some people's view, the
scheme has been considered as supplement of social security and thus expected to transfer the
scheme into regular subsidies.
Beside the partaking scheme, Macau government established the "Central Saving Plan" – to inject
certain capital into individual account of all the permanent attained the age of 22 in the year. The

Description Of The Company's Largest Pension Funds With...
1. Description of the company
OMERS is one of Canada's largest pension funds with net assets of more than $72 billion and an
AAA credit rating. It has offices in Toronto, New York, London and Sydney. OMERS Private
Markets ("OPM") is one of the five investment divisions in OMERS. It has two investment
platforms – Borealis Infrastructure and OMERS Private Equity. OPM has a diversified, global
portfolio of infrastructure and private equity assets and the goal is generate superior, risk–adjusted
returns to help deliver strong and sustainable pensions to OMERS members.
2. Co–op work term
2.1. Job title and responsibilities
2.1.1.1. Job Title: Analyst, Finance & Reporting Co–op – CPA Training
2.1.1.2. Responsibilities: Basically, this position provides support in the Finance team, mainly
focusing on investment reporting and financial analysis. The main responsibilities are list below:
Assist with preparation of journal entries and account reconciliations as part of the financial
reporting process;
Assist with weekly cash forecasting and prepare coding sheet for Account Payable department;
Assist with the preparation of schedules and reports requested by Investment Operations and
Corporate Financial Reporting;
Review and perform variance analysis and solvency test on financial data;
Assist with the preparation of monthly reports for inner company reporting;
Assist with the development and implementation of budgets and forecasts;
Prepare quarterly–end financial

Equinox Asset Management Case Study
Portfolio Management Case 6 Equinox Asset Management Executive Summary Role playing Tom
Henne, I'm trying to penetrate into pension market and change the way pension funds are run
currently. The fund size is hard to tell since the cost structure of Equinox is unknown. But I have a
rough idea of running a medium–size fund (between $30 to $50 million) targeting medium–size
clients. I also decide to choose option 1 as the fee structure. These ideas are generated through
analysis of current economic environment, Henne's objectives, correlation between existing funds
and TSX index, performance and size of existing funds. Pension funds in Canada Pension funds are
established in order to provide income for people who are retired. So ... Show more content on
Helpwriting.net ...
20% of a small fund can be too little for Equinox. If Equinox targets large funds, it can only hold
1% to 5% of them. Large pension funds may not be willing to separate its asset into small pieces
because it will rise the cost of management. Equinox's marketing point The most attractive
marketing point should be the fee structure. Equinox's MER is much lower than other pension
funds. Getting paid based on the return of the fund instead of the size can effectively eliminate the
agency problem since it aligns the interest of clients and managers. Clients can see greater
opportunities to get higher return by investing in Equinox. 2 Equinox should provide lower MER or
it can show no strength compared to the existing big pension funds. Option 4 is too risky for Henne
given current market environment. He may not be able to cover the cost if the market has not come
out of the downturn. 3 Equinox needs $52.5 million to cover the fixed cost if Henne chooses option
2 and $105 million if he chooses option 1 4 A medium size fund of $30 to $50 million has little
difference in return based on fund size no matter Henne chooses option 1 or 2.. Henne also appears
to be pretty confident in the performance of Equinox. So it can be more profitable for Henne to
choose an option with higher performance fee based on excess over returns. Appendix: Chart 1:
Information of Six Funds in Exhibit 3 London Life Canadian Equity RBC Canadian Equity CIBC

The Appropriateness Of A Mean Variance Simulation Model...
The appropriateness of a Mean–Variance Simulation Model for a
Commonwealth public sector defined pension benefit fund
Kevin Lian
October 20, 2014
In this section, we will examine the use of a mean–variance simulation model on a commonwealth
public section defined pension benefit fund. Firstly, we will examine the expected medium term
returns using the reverse optimisation approach and discuss whether any adjustments are necessary.
Secondly, we will examine how appropriate the model is for the fund. Lastly, we will discuss how to
determine any inconsistencies if a mean–variance model is used.
Expectations for medium term returns
The market portfolio consisted of 8 asset classes 1 , in which we used an adjusted allocation size
based on APRA ... Show more content on Helpwriting.net ...
This is emphasised by the near singular correlation matrices
2 . Furthermore, the results are extremely sensitive to these mean and variance assumptions due to
the structure of the M–V model. This exposes our results to a potentially unbounded error size.
Thus, we suggest a Bayesian adjustment is needed to reflect our uncertainty about our assumptions.
1 AE – Australian Equity, IE – International Equity, LP – Listed property, UP – Unlisted Property,
AFI – Australian
Fixed Interest, IFI – International fixed Interest (Hedged), Cash – $AUD
2 This can be seen by determinants of the 5, 6, and 7 year correlation matrices, which were
2.31258E–48, –9.99469E–
34, and –1.72439E–20 respectively
1
Group B Part D ACTL4303 Assignment Student ID: 3374652
Furthermore, the results in Table 1 also requires some adjustments due to tax and the inherent
assumptions of the reverse optimisation approach. In general, the returns of each asset class need to
be subjected to the appropriate tax deductions and transaction fees. In particular, Australian equity
returns have not accounted for the franking credits. In addition, the method used to calculate the
risk–aversion coefficient result in time–invariant equity returns. Thus, adjustments are needed to
reflect time–vary equity risk premiums. In

"Hermes Fund Management" Analysis
Summary The case study 'Hermes Fund Management, Total and Premier Oil: the responsibility and
accountability of business' documents that in 2008, Hermes Equity Ownership Service (EOS)
considers whether they should support Total, one of its clients, a giant French oil company operates
a business in Burma/Myanmar and should they accept Total 's invitation to visit Burma/Myanmar.
David Pitt Watson, founder of Hermes EOS has said: "Hermes ' philosophy is different from most
founds. It seeks to create value for our clients in the companies in which it invests, not just trying to
pick winners." Hermes aimed to be a responsible owner of the company and its decision needed to
have a view about whether Total was acting properly. Hermes ... Show more content on
Helpwriting.net ...
Premier 's share price had dramatically underperformed the market for several years due to no clear
strategy, a restrictive capital structure and the involvement in Burma was not being managed.
Especially, the military dictatorship controlled the business all the time. The second issue is whether
Total will reverse their bad reputation by operating business in Burma. Total had never had a good
reputation for Corporate Social Responsibility (CRS). Total was marked as a part of not taking CRS
issues seriously. Even though it is been pleased by Total 's adoption of a more public commitment to
social responsibility, how to ensure their implementation on it? The third issue is risk and profit in
Burma. Since Burma is a military dictatorship system, the regular results of democratic elections are
not accepted. Summary arrest, force labour and torture were widely reported. It will affect a
company 's profit by doing business in a pariah company.
Recommendation In order for Hermes to respond Total 's operation in Burma without affecting the
Total's current market performance, the following recommendation is essential for Hermes: Based
on the historical record, Hermes had successfully helped Premier out of the bad situation by set up
an engagement of

Pension Plan Essay
Accounting for costs of pension plans was established in 1966 when GAAP had to address the use
of the accrual method when recognizing the expense of pensions. Before then, companies recorded
pension expenses as retirement benefits were paid, which was the concept of cash basis. Pension
plan assets were never recorded and a portion of the pension liability was recorded only when the
obligation to pay benefits exceeded the plan assets. It was not until 1980 when limited recognition
of pension plan liabilities were required to be recorded on the balance sheet. Since then, GAAP has
had some additional disclosure requirements and balance sheet recognition of the pension plan's
assets and liabilities. There are two different kinds of pension plans that companies account for:
defined contribution and benefit plans. In a defined contribution plan, employees and employers
contribute to the pension fund while they work based on the terms of the pension contract.
Companies makes no guarantee that an employee will receive a particular amount of benefits when
they retire. The retirement payments are dependent on the contributions and investments to the fund.
Most of the time, companies require a specific amount of contributions towards the fund each year,
which is agreed upon between the company and its employees. Some examples of defined
contribution plans are 401(k) plans and Individual Retirement Accounts (IRAs). These plans offer
investing funds, in which the fund amount should grow

The Capacity Of Public Pension
Title
The capacity of public pension for sufficient retirement income in the OECD European Countries
Introduction
There are six types of sources of retirement income, namely work, social benefits, state pension,
occupational pension, personal investments such as owned housing and personal pensions including
donations and inheritance from family (Delsen and Reday, 1996). In addition, the public pension
and workplace pension are considered the two largest predominant components. In this regard, this
paper mainly focuses on the retirement income from Pay– As– You– Go (PAYG) financed public
pension especially in 18 OECD European countries. Based on OECD pension indicators data set,
there are three case attributes in this paper including ... Show more content on Helpwriting.net ...
Secondly, Haynes (2011) notices that the retirement incomes in Scandianvian countries are
significantly different from other OECD nations as a result of the emergent protection for wome's
pension replacement rate, besides, the calculation of pensions relative to previous earnings has been
changed in serval European countries (Arcanjo, 2011; Peeters et al., 2014). Thirdly, the income
inequality among the elderly has a negative correlation with the retirement income (Brown and
Prus, 2006; Dewilde, 2012). In this sense, the paper intends investigate these three logically causal
conditions related to the capacity of pubilc pension for protecting sufficient retirement.
Critical realism
Given that this paper looks at a social scientific question, in addition, the social world is an open
system influenced by multiple interactions, methods for complex systems are different from the
experiments in a closed laboratory condition (Cilliers, 2000; Archer et al.,2013). According to Sayer
(2000), unlike the traditional positivist approach, critical realists call for either conceptual or
historical perspective to explore the outcome, thus, the causation of critical realism could be much
more complex than one of positivism. More specifically, it is noticeable that in complex systems,
the same causal

What are Pension Fund or Pension Portfolio
Question A Pension portfolio is a common asset pool meant to generate stable growth over the long
run, pension funds are provide for employees when they reach to an end of their working years and
retirement. (Investspodia US, pension fund 2014) Base on the case study, TMP is currently investing
only in the U.S security market which is also investing domestically. Due to an increasing demand
from its institutional clients for information and assistance related to international investments, the
firm has decided to invest on the international market. The reason on adding international securities
to the portfolio mainly it has a few advantages and disadvantages. The advantages on investing on
international securities are diversification. By ... Show more content on Helpwriting.net ...
Article that provide from the guardian, the recently protest in Thailand has affect the economy of
Thailand. (Guardian Liberty Voice, Tom Clark , April 2014) Generally, the war, protest, terrorism
activity or any other unexpected political issues may bring a negative impact towards investors.
Foreign investors might get affected if the government decides to impose new tax laws on
withdrawals of cash out from the country or it might be even worst that the profits that make by
investors might turn into the government coffers. Different countries have different regulations.
Many foreign countries such as countries that are consider as second or third world country do not
have a good supervision and control standards. Full financial disclosure may not require from
different country. This may bring difficulty to investors to obtain necessary information from the
corporation. Even though if adequate information can be obtained, it is very time consuming and
costly for investors or fund managers to obtain. Investing on the international markets can be more
expensive than investing on the domestic market. This might due to taxes, transaction costs for the
securities, and commission for brokers. As a result, mutual funds that invest in international markets
tend to have higher expensive ratios than similar domestic funds. Investing in the international

Report On Greydanus, Boeckh And Associates
Report on Greydanus, Boeckh and associates (GBAs) portfolio management styles
Name
Course
Institution
Tutor
Date
Introduction
GBA was founded in 1984 by Jake Greydanus. The initial name which was given to this company
was the Greydanus & associates investment counsel limited. The aim of the company is to provide
the fixed management of income to all the pensions and endowments funds. In 1986, Boeckh
purchased a half of the firm and this led to the change of the name of the company to Greydanus,
boeckh & associates incorporation. This research aims at analysis the organization while elaborating
the parts of the case study which are important about the company.
GBAs performance
GBA has currently managed $1.7 billion which is ... Show more content on Helpwriting.net ...
In most of the cases which involved the management of new ideas and the observed relationships in
comparison with the bond prices, the firm adopted changing models in the style of its management.
This is appropriate because the variables in the market usually change and adopting one model may
not be the suitable move to take.
The strategies which are used by this company are not advantageous in the sense that most of the
corporate debts in the organization usually carry considerable amounts of higher yields. Producing
above average returns in the organization, with risk set a lower level than the normal risks would be
an appropriate strategy which has to be used.
The outlook for changes in interest rates
The weak economic growth in Asia ad in Europe has helped in benefiting Canada and the US. Asia
and Europe had also faced deflationary pressures which were caused by the changes in the rates of
interest rates in the economy. The risk of the inflationary pressure in the US led to the increasing
concern of the federal reserves. The Canadian bonds have been trading at a considerably lower yield
as compared to the US bonds in the market. The situation was supposed to be maintained if the
Canadian dollars in the economy appreciated relatively to those of the US dollars in the economy.
The outlook for the bonds in the economy looked to be very attractive an aspect which was
attributed to the changes in

Construction Unions
renders an affected unit, or trade, futile to the entire process. If the material or product is not
immediately replaceable, the relevant labor unit will be replaced by another capable of fulfilling the
same role, but equipped with different products relevant to its own trade that comparatively achieve
the equivalent purpose of the former. A construction union today, whose basket of specialized
materials includes environmentally harmful products, faces the same risk of obsoleteness. It follows
that the ratification of an environmental regulation outlawing a certain product, or litigation
outcome rendering the handling of a construction material as detrimental to human health, can
extinguish an entire construction union. High taxation ... Show more content on Helpwriting.net ...
Plan administrators taking part in such a strategy can influence corporate policies of companies in
ways that they believe benefit the fund's participants through its rights in equity holdings to, among
other things, sponsor proxy proposals and take part in elections for board directors. 13 In other
words, the union, as a shareholder, can force manufacturers of the building materials that it relies on
to innovate their products in ways that exceed future environmental standards. This is known
otherwise as environmental activist investing.
c.
Framework of Sustainability–Driven Activist Investment Strategy for Construction
Union Pension Funds: National Syndication, Proxy Proposals, and Board Elections
With the top four publicly traded manufacturers of building materials and aggregates in the U.S.
comprising an average of only $3.45 billion in market share14, the effective activist investor need
no more than a fraction of these sums at his disposal to drive effective corporate change. It should
be noted, however, that corporate managers of building material manufacturing companies have
stake in preserving competitive business models and

Contributions Of The Pension System
A defined contribution (DC) scheme on the other hand is a pension plan whose value depends on an
individual's own contributions, those from his/her employer and the government; generally in the
form of a tax relief. These contributions are reinvested in the stock market and upon retirement, the
accumulated value of the fund is received and can be used to secure a pension income. A choice is
usually made to either purchase an annuity (a product which offers a guaranteed income for life),
used as a drawback (reinvesting the fund value in the stock market from which income can be
drawn when needed) or a mixture of both. It is also worth noting that a maximum of 25% of the
pension fund is available for withdrawal as a Tax–free lump sum ... Show more content on
Helpwriting.net ...
The inequalities experienced (for example married couples earning higher state pension than
unmarried people and women generally allocated to a lower State pension than men) under the
current system have led to these general low levels of savings for retirement. According to the
Office of National Statistics (ONS), it is projected that about 36% of the population born in 2013
will live past the age of 100 as compared to the 1940's where mortality was estimated at 68years .
These constant and gradual improvement in longevity estimates, will give rise to a higher ageing
population being formed relative to a lower increase in working population. Consequently all
current tax incomes to the government will not be sufficient to be pay the retirement income for the
aging population, hence increasing the burden on the government to finance the ageing as it cannot
sustain the pension system. The complex nature in estimating one's retirement earnings
characterised by additional benefits reward for long–term services, alongside the increasing
dependence on means–tested benefits, has led to a general misunderstanding of the current pension
scheme. Over the years, this has prevented many people from knowing and deciding on how and
why they should save towards their retirement and has often led to people not saving at all. The state
pension is unfunded. Under the current pension system, it was realised that all

Why Volatility Diminishes As Pension Funds Investments On...
Thomas, Spataro and Mathew (2014) test whether volatility diminishes as pension funds
investments in stock increases. The hypothesis was pre–defined and clearly mentioned at the
beginning of the study in an easy understandable way. To test hypotheses, they use a panel data of
34 OECD countries with specific time range from 2000–2010. They determine the independent
variable which is equity market volatility and several dependent variables including the ratio of
pension funds assets invested in shares and pension funds assets invested at the country level,
average volatility of all OECD countries, value of stocks, inflation rate, income level per capita and
the ratio of public debt to GDP. They have identified the variables what may have an impact on the
volatility of stock market and give clear and detailed information on why these variables were
included in the model.
Data also has been described and reported by measuring central tendency of the data. A main
descriptive statistics of the variables used in the model shown below. The descriptive statistics
includes number of observation, mean, standard deviation and range. The most popular measure of
central tendency is mean, which reports the average of variables. In this study mean represents an
average value of each variable among 34 OECD countries with 374 observations in total. On the
basis of those averages further tests were performed. Median is another measure of tendency, which
represents the middle point but has

Benefits Of A Registered Pension Plan
On top of the benefits they receive from public pensions, some Canadians will also receive benefits
from employer–sponsored pension plans If you or your spouse do not have an employer pension
benefit, you may wish to skip this chapter. A registered pension plan (RPP) is an arrangement by an
employer to provide pensions to retired employees in the form of periodic payments. The Income
Tax Act provides deductions in respect of both employee and employer contributions. There are
basically two main types of employer pension plans: Defined benefit pension plan Defined
contribution pension plan 7.1 Defined Benefit Pension Plan With a defined benefit pension plan, the
amount of your pension is primarily defined by a set formula often based on your career earnings
and years of service. A typical formula for calculating a pension in a plan based on the 5–year final
average salary would be like this: Annual pension income = (2% x years of service) x (average of
the last five years of income) If you have been with the employer for 30 years and the average
income of your last five years is $80,000. The your pension entitlement would be like this: (2% x
30) x $80,000 = 60% x $80,000 = $48,000 Once you are vested in a DB plan, you are entitled to
receive the benefits you accrue while you are a member. If you leave the company before your
retirement date, you 'll usually be offered a deferred pension or a lump–sum buyout. With a defined
benefit plan, companies are required by law to make

Deduction
LESSON 12 DEDUCTIONS
Dr Vandana Bansal
STRUCTURE
12.0 Objectives 12.1 Introduction 12.2 Deductions from gross total income 12.3 Basic rules
governing deductions under sections 80C to 80U 12.4 Deductions 12.5 Deductions to encourage
savings 12.5.1 Deduction in respect of life insurance premium, etc.80C 12.5.2 Deduction in respect
of pension fund 80CCC 12.5.3 Deduction in respect of contribution to pension scheme of central
government 80CCD 12.6 Deductions for certain personal expenditure 12.6.1 Deduction in respect of
medical insurance premium 80D 12.6.2 Deduction in respect of maintenance including medical
treatment of dependent who is a person with disability – section 80DD 12.6.3 Deduction in respect
of medical treatment – section ... Show more content on Helpwriting.net ...
To give impetus to savings these deductions are given on certain investments or certain expenditure
made by the assessee. Deduction is allowed when the saving is invested but normally any
withdrawal is treated as income in the year of withdrawal.
__________________________________________________________________
12.5.1 DEDUCTION IN RESPECT OF LIFE INSURANCE PREMIA, ETC. (SEC. 80C)
A new section 80C has been inserted from the assessment year 2006–07 onwards. Section 80C
provides deduction in respect of certain expenditure/ investments (which are specified in this
section) paid or deposited by the assessee in the previous year. Deduction under this section is
available only to individual & Hindu Undivided Family. Gross Qualifying Amount The following
payments/investments qualify for deduction under this section. The total amount of investments
made during the P.Y. under these below mentioned schemes is known as Gross Qualifying Amount (
GQA ) 1.Life Insurance premium paid on a policy taken on his own life, life of the spouse or any
child (child may be dependent/ independent ). In the case of a Hindu undivided family, policy may
be taken on the life of any member of the family. The premium paid should be maximum of 20% of
sum assured . 2. Any sum deducted from salary payable to a Government employee for the
167
purpose of securing him a deferred annuity (subject to a maximum of 20% of salary) 3.
Contribution towards statutory provident fund and

Anti Bds Legislation On The United States
Section II: Anti–BDS Legislation in the United States Since February 2013, a series of bills and
resolutions opposing BDS activism have been passed by state legislatures in Florida, Illinois,
Indiana, New York, New Jersey, Pennsylvania, South Carolina, and Tennessee, and by Congress.
Bills and resolutions opposing BDS activism have also been proposed in California, Maryland, and
Ohio. It is possible that similar legislation will be proposed in other states. State legislatures that
have passed anti–BDS legislation reject BDS activism on the following grounds: it "undermine[s]
efforts to achieve a negotiated two–state solution," it "represents a strategic threat to the State of
Israel," it "contribute[s] . . . to the delegitimization ... Show more content on Helpwriting.net ...
These resolutions "reject the BDS Movement and its activities," and also "reject activities that
contribute directly or indirectly . . . to promotion of economic, cultural, and academic boycotts
against Israel," "by the Boycott, Divestment, and Sanctions Movement against Israel." These
rejected activities include economic, cultural, or academic boycotts against Israel that the states
assert are attempts to "economically and politically isolate Israel within the international arena."
Enacted State Bills South Carolina enacted the first domestic anti–boycott law in the United States
in June 2015, entitled, "Prohibition of Contracting with Discriminatory Businesses," which prohibits
all public entities operating in South Carolina from contracting with companies and other business
entities that employ boycotts because of a protected classification under Title VII of the Civil Rights
Act of 1964. The South Carolina law defines a "boycott" as any effort by companies to "blacklist,
divest from[,] or otherwise refuse to deal with a person or firm when the action is based on race,
color, religion, gender, or national

Dipfa Coursework- Pension Planning
Advanced Financial Advice Cover Sheet
|AFA Coursework |
|Submission deadline 02 March 2012 |
|For Internal Use Only |
| |1st Mark |2nd Mark |
|Part A | | | | |
|Part B | | |
|TOTAL Awarded: | | |
[pic]
|Please type your Word Count for Part A (only) in the following box: |3845 |
If you do not agree to the ifs using any part of ... Show more content on Helpwriting.net ...
Pensions Input Periods
A PIP does not have to be the same as the tax year. PIPs can be different between pension schemes
and can be changed by an individual. For new pensions started after the 6th April 2011, a PIP will
automatically end on the 5th April. It is important to understand that PIPs are only used for the
Annual Allowance and any contributions made to a scheme will still be eligible for tax relief in the
tax year that they are made.
Annual Allowance– The rate of charge
Only contributions made in excess of the annual allowance will be charged. The rate will
approximately be the top rate of income tax that is applied your income.
[pic]
Carry Forward
New rules for 'Carry Forward' have been introduced for 2011/2012 which potentially allow clients
to invest more than £50,000 to be contributed to a pension arrangement without being subject to the
Annual Allowance charge. This may be of particular importance to high earners whose pension
contributions have previously been restricted.
The new 'Carry Forward' rules allow unused Annual Allowance to be carried forward by up to three
years. Where an individual wishes to use 'Carry Forward', the Annual Allowance for previous years
is deemed to have been £50,000.[pic]

Lifetime Allowance (LTA)
At the same time as announcing changes to the annual allowance, a similar change was

What Is The California State Teachers Retirement System
Hussein Heykal 1505540350 PPD 647 Prof. Michael Thom Finance of the Public Sector The
California State Teachers' Retirement System The California State Teachers' Retirement System –
from this point on will be addressed as CalSTRS– is one of Government Operations Agency
programs of the State of California. It was established in 1913 with the objective to provide
retirement, disability, and survivor benefits for full–time and part–time teachers, administrators and
their families/beneficiaries in the State of California. This means to provide a proper income
intended for teachers and school administrators from pre–K to community college with benefits
according to their period of services respectively and also to sustain their members' trust ... Show
more content on Helpwriting.net ...
CalSTRS Defined Benefit Program is a conventional retirement plan calculated based on a formula
using the age, years of service/service credit, and final compensation. The coverage is on CalSTRS
2% at 60 (age 50 with at least 30 years of service credit; or age 55 with five years of service credit),
and on CalSTRS 2% at 62 (age 55 with at least five years of service. Teachers who are eligible for
the benefits are those who are teaching, vocational and guidance advising, curriculum development–
related task, and a range of administrative responsibilities. The contributions for this program are
combinations of members, employers, and state. The benefit is paid in the form of lifetime monthly
annuity. In case of negative investment returns, employer bears the risk which made it a safer option
for the teachers. CalSTRS Cash Balance/Defined Benefit Supplemental Program is a mixture of
conventional defined benefit with additional savings for retirement based on the account balance.
Within this plan there are two programs, namely the Defined Benefit Supplemental Program for the
full–time educators, and the Cash Balance Benefit for the part–time educators. In contrast to the
conventional defined benefit, this program relies heavily on the investment returns hence the
amount of money paid at the time of retirement could be less than the total contribution if the
investment returns were negative. However, there

The Benefits Of Pension Fund
Pension Fund is a fund that is accumulated from employees contributions, or employers
contributions, or both and hence forth employees benefit from the pension paid from thereafter,
upon retirement or termination from duty. In Tanzania, the pension fund is managed by the social
security system, under the Social Security Regulatory Authority (SSRA) Act, 2008; aimed at
regulating the social security sector and to provide for related matters that might arise. The act
applies only for Tanzania Mainland; and in that regard, this paper shall only take the Tanzania
Mainland pension schemes into reference. The social security system in Tanzania mainland is
defined by quite a number of social security funds, serving a small population of most of the
working class. The current setup in the country only provides for effective contribution of workers
in the formal sector. The pension schemes in Tanzania mainland are the National Social Security
Fund (NSSF), Public Sector Pension Fund (PSPF), Parastatal Pension Fund (PPF), Local Authorities
Pension Fund (LAPF) and the Government Employees Pension Fund (GEPF). 2. The Role of
Pension Fund Investments in Tanzania The key responsibility of the pension schemes in Tanzania is
to provide protection to their members against the future economic and social disaster, including
death or disability; which could lead to work stoppage, be voluntarily or involuntary, hence
experience either reduction or cessation of income. Old age, maternity, and

Pension Funds and Pension Crisis
Pension Funds and the Pension Crisis Introduction Pension funds are any plans, funds or schemes
which provide retirement income. These funds are important to shareholders of listed and private
companies and they are particularly important to the stock market which is dominated by large
institutional investors. This essay discusses the idea of pension funds and the pension crises. It
defines the issues of pension funds, talks about the various pensions, categorizes them, and
discusses the pension crisis and its implications to the US in particular and to the world in general.
Pension Funds Pension funds are any plans, funds or schemes which provide retirement income.
The money in them varies from some offering very little making it not worthwhile for their holder to
retires, whilst others pay more than the employee has earned in his lifetime. Examples of the former
are the present–day crisis with Chicago teachers who have found that their pension is giving them as
little as 42,000 per year ((NYT Times (September 19, 2012) Next School Crisis for Chicago:
Pension Fund Is Running Dry). Examples with the latter are the absurd instances of Yonkers, where
policemen in their 40s are retiring on $100,000 pensions (more than their top salaries), or in
California, where payments to Calipers, the biggest state pension fund, soared while financing for
higher education was cut (ibid). The largest 300 pension funds collectively hold about $6 trillion in
assets (Global Investment

Benefits Of A Pension Fund
Introduction
A pension fund, also known as a superannuation fund or super fund is any plan, fund, or scheme
which provides retirement income. A pension fund is established by a company, governmental
institution or labour union to pay for the (future) pension benefits of retired workers.
Superannuation funds collect retirement savings from workers and their employers, and invest this
money in a wide range of assets. Because pension funds manage the money of up to millions of
individuals, they are major players in the financial markets. Australian superannuation funds are
major investors in the domestic and global capital markets.
Other than a few very specific provisions in the Superannuation Industry funds are not subject to
any asset requirements or investment exposure flaws. There are no minimum rate of return
requirements, nor a government guarantee of benefits. There are some minor restrictions on
borrowing and the use of derivatives and investments in the shares and property of employer
sponsors of funds. As a result, superannuation funds tend to invest in a wide variety of assets with a
mix of duration and risk/return characteristics.
In an efficient market at any point in time the actual price of a security will be a good estimate of its
intrinsic value. An efficient–market is defined as a market where there are large numbers of rational,
profit–maximizers actively competing, with each trying to predict future market values of individual
securities, and where

An Investigation of Customer’s Perception and Expectation...
AN INVESTIGATION OF CUSTOMER'S PERCEPTION AND EXPECTATION OF SERVICES
IN PENSION FUND ADMINISTRATION (PFA) IN NIGERIA
(A STUDY OF PFA CUSTOMERS IN ENUGU)
CHAPTER ONE
INTRODUCTION
1. Background Of The Study
In the current competitive environment, satisfying customers has emerged as the primary challenge
for many service companies. Emerging technologies, rising and ever changing customer
expectations has significantly narrowed the quality gaps, thus thrusting customer satisfaction into a
preeminent role in achieving a sustainable competitive advantage. Service quality is clearly essential
for organizational success and is typically defined in relation to exceeding customer expectations
(Humprey, 2004). Customer perceives services ... Show more content on Helpwriting.net ...
1.3 Objective of the Study
The major objective of this research paper is to examine service quality from the perspective of
consumers' expectations of the quality of service delivery contrasted with the perceptions of the
actual service delivery in pension fund administration within Enugu state.
The specific objectives includes 1. To determine the nature of the pension services. 2. To test the
reliability of the SERVQUAL instrument in pension service. 3. To gain some insight and
understanding into the dimensions of service quality customers consider more important in
determining satisfaction. 4. To ascertain and test the direction of the causal relationship between
customer satisfaction and service quality.
5. To recommend strategy for influencing customer perceptions and closing the customer gap.
1.4 Conceptual Framework
The framework for this research is premised on the expectancy–disconfirmation paradigm (Oliver
1980; Parasuraman, Zeithaml and Berry 1988, 1994 and Gronroos 1994) and the expectancy–
disconfirmation comparison judgment as determinants of customer satisfaction and perceived
service quality. Consumers' evaluation of service quality is a function of the magnitude and
direction of the gap between the customer's expectations of services and customer's assessment
(perception) of the service actually delivered.

What Are The Characteristics Of CSR In Japan
systematically disseminate information regarding the company's CSR efforts to investors and the
general public.
2. Characteristics of CSR in Japan
Previous Japanese CSR studies in the 1990s paid attention to the exceptional CSR performance of
Japanese companies across certain dimensions, including product quality, customer service and
concern for employee welfare. During the 1990s, much of the world was attracted to Japanese
innovative management practices such as just in time, quality circle, and total quality management.
These advanced management practices enabled high–quality goods and services to be provided to
markets at a competitive cost. As a result, Japanese companies enjoyed customer satisfaction and
credibility. In addition, the participation of employees, life–time employment, and extensive benefit
programs in Japanese firms resulted in strong loyalty and high morale of employees. In particular,
Japanese firms had a strong reputation for their occupational safety and health, evident in the
extremely low worker injury and illness rates.
The CSR achievement of Japanese firms has been limited to certain areas such as environmental
responsibility and the work ... Show more content on Helpwriting.net ...
Doing CSR in Japan is less legalistic than the Western countries, instead of specific rules and
regulations. The government in Japan usually uses voluntary guidelines and suggestions to control
the CSR activities that ensure cooperative relationships between the companies and government.
The Japanese Ministry of Economy, Trade and Industry defines CSR as not only complies with
laws/regulations and risk management, but encourages the improvement of corporate brands/human
resources in the same way as corporate competitiveness. In the opinions of Japanese managers, the
adoption of CSR is about understanding the spirit of compliance on a voluntary

A Brief Note On Pension And Pension Liability
Pension vs Pension Liability A pension is an amount of money that a business or government uses to
make payments to its retirees. The company usually doesn 't pay pension benefits directly, rather it
buys an annuity which converts a fixed amount of money into a lifetime of annual payments for the
retiree. However, investing in it can be tricky. The amount to which a guarantee is based on,
changes over the years. When the stock market takes a decline, the investment can too which means
less money for all concerned creating what is called a pension liability. A pension liability is
considered to be the difference of the amount that 's due and the amount of money that is actually
available. The liability happens in a traditional DB scheme or a Defined Benefit scheme such as a
matching fund that guarantees a certain amount of retirement income. When the government or
other agencies use money that was meant for pensions for other reasons, and don 't replace the
funds, this could create a pension deficit or liability. Another way in which a deficiency may occur
is to have thousands of people retire or laid off at the same time. Pensions in the UK For some time
now, the UK pension fund has been under the scope. The pension fund operates on a collection of
earnings or component of earnings. It 's very much a part of the UK 's economic position and lately,
its disruption. It 's important to Russia and other sizable European markets mainly due to the returns
of the

How Underfunded Public Pensions Be Around The Country Essay
There's a lot of discussion in the news about how underfunded many public pensions are around the
country. States like Alabama, Michigan, Illinois, and Arizona are in the news for high, pension plan
debt that are eating away city and state budgets. But, the public sector isn't alone in underfunding
pensions. Not all private pensions are the money in the bank that employees think they are, in fact
they are doing about the same as public pensions. Neither is 100 percent funded. The result?–A
combined deficit in retirement plan savings of over $4 trillion for payees between the ages of 25 and
64. A Quick History of Retirement: Then and Now In 1875, the first private pension plan was
created by the American Express Company. Because most employers were not publically traded
companies, they were rare. A series of revenue laws passed by congress from 1921–1929 helped
private pensions grow by safeguarding funds from federal taxation and providing tax credits to
employers who contribute to an employee pension plan. Amazingly, private pension plans survived
the stock market crash in October of 1929 with only a three percent of workers losing their plans. In
fact, a few of the private pension plans started before 1929 are still active today– U.S. Steel
Company (1911) General Electric Co. (1912) American Telephone and Telegraph Co. (AT&T)
(1913) Goodyear Tire and Rubber Co. (1915) Eastman Kodak Co. (1929) Shortly after the crash, in
1935, President Roosevelt signed the Social

Institutional Markets : Institutional Investors
Institutional investors are any organizations or persons which collect quite number sums of money
to invest in securities and also control a collection of share amounts to qualify for special treatment
and less regulation. They can also include operating companies that decide to invest their profits to
some degree in these types of assets. Insurance companies, mutual funds and pension funds are
some examples of institutional investors. These institutional investors need to face some regulations.
"Institutional investors always participate in private placements of securities due to their
sophistication, in which certain aspects of the securities laws may be inapplicable."
These institutional investors play role in the economy is to act as highly specialized investors on
behalf of others. For example, an employee will have a pension from his employer as the employer
gives that person 's pension contributions to a fund and the fund will be used to buy shares in a
company, or some other financial product. Funds are greatly useful because they will hold a broad
portfolio of investments in many companies. This spreads risk, so if one company fails, it will be
only a small part of the whole fund 's investment.
Types of Institutional Investors in United Kingdom.
In Britain, the largest single category of institutional investor is the pension funds, which was
gradually increasing from 3% of the market in 1957 to 31% in 1992 as they have largest corporate
pension plans with

History of Pension Funds Essay
History of Pension Funds
In tradition, welfare of the elderly was the role of the family unit. However, during the twentieth
Century the population began to grow in the UK and USA and the "elderly became a serious
problem that only the apparatus of the state was able to help" [1] Problems raised when the state
was no longer able to provide support to the elderly due the elderly becoming older, improvements
with medicine, improvements in general standards of living and so on, which led to the role of
financial institutions. I.e. the creation of pension funds which has now become one of the largest
financial institutions in the USA and UK.
Information about Pension Funds
Pension plans an ... Show more content on Helpwriting.net ...
IBM has mentioned that they had done an analysis of "over 75 companies on all aspects of their
compensation and benefit plans and program" and their results have shown that they were offering
significantly more to their employees than most other companies, "In pensions, IBM found that 75%
of its competitors do not offer a pension plan and even fewer offer retire medical" [4]
IDM is a private pension fund. i.e. an occupational pension fund. There are two types of pension
plans which are defined benefit plan and defined contribution plan. Under a defined benefit plan, the
plan sponsor promises to make annual payments to qualifying employees beginning at retirement
which uses a formula to do this. It considers the length of service of the employee and the
employee's earnings. In a defined contribution plan, the sponsor makes specified contributions into
the plan on behalf of qualifying participants. "On retirement, the amount accumulated in the account
is paid out to the participants either in cash or as an annuity."[5] Recently, however, a hybrid type of
plan called a cash balance plan had been developed. In this plan, plan benefits are also fixed based
in a formula and investment responsibility is borne by the employer which are similar to a defined
contribution plan in that assets accumulated in an "account" for each employer.[6] In

Behavioral Economics Of A Pensioners Choice
Behavioural Economics Surrounding a Pensioners Choice BSc. Mathematics and Actuarial Sciences
University of Leicester Submitted by: Usman Raza Khan (119047679) Supervisor: Nick Foster
Contents: Introduction What is Financial Myopia and Hyperbolic Discounting? ..................... 3
What is Inertia? ........................................................................................ 4 Governments Efforts
............................................................................ 4 Controversy
.................................................................................................. 5 Introduction: Due to better health
conditions, the population of the UK is ageing – with 10 million people above the age of 65 years
due to rise by approximately 5.5 million by 2020 and a further 19 million by 2050 according to
census in 2010 by the UK government. This poses a ... Show more content on Helpwriting.net ...
It is reported that approximately 11 million people of the current work force that are under saving
and could have insufficient funds for retirement. To counteract this trend the UK government has
been actively introducing "incentives" to nudge individuals towards savings such as Auto–
enrolment, Pensions Freedom and Lifetime ISA's. Recent changes to pension legislation, which are
said to stem from years of debate and studies that are striving for promotion of involvement of
individuals when handling their pension funds by incentivising savings. What is Financial Myopia
and Hyperbolic Discounting? Financial Myopia (short–sightedness) is a behaviour observed in
individuals where they prioritize short–term benefits over long term benefits. Laibson suggests that
individuals are susceptible to "mental accounting" and, attaching different psychological values to
various types of income and assets and also develop differing attitudes in doing so. The existence of
such nature among individuals could be due to a number of factors, for example individuals have an
approximate age at which they wish to retire and do not want to carry with them any debts into
retirement or work longer than they have to. Myopia has been subject to study and has been at the
centre of different models developed to describe savings and retirement. A form of myopia is
"hyperbolic discounting." Hyperbolic discounting refers to the tendency for people to

Pension Funds Case Study
The evidence reported in Section VII shows that pension funds have had a material and significantly
positive effect on the development of bond and stock markets in Latin America's largest economies.
Even though there are country–specific circumstances that may influence the magnitude of pension
funds' impact on domestic capital markets, the positive trend holds after controlling for these
variables using entity fixed effects. Such positive influence on the depth of capital markets translates
into greater overall financial development, which has the potential to accelerate emerging markets'
process towards economic development. Therefore, this suggests that the benefits derived from
robust and efficient pension systems may have positive ... Show more content on Helpwriting.net ...
On the other hand, even though transactions in the secondary market involve only the owners of the
securities and not the issuers of such securities, issuing firms still benefit from price appreciation.
As pension funds increase the demand for securities in secondary markets, their prices start hiking,
especially due to the material effect of pension funds' transactions. Despite not receiving any of the
proceeds directly, higher valuations of these securities in secondary markets have a positive
spillover effect in primary markets for firms, as they are able to raise a larger amount of capital per
new issue. Nonetheless, this benefit is limited by the fact that new issues exert dilutive pressures on
the prices of existing securities and may lower the valuation of future issues. This implies that there
is a window of opportunity for firms to reap such benefits, yet it still holds that an increase in
pension fund assets contributes to the growth of bond and stock markets, even via secondary
markets. Internal validity In terms of internal validity, the magnitude of the main parameter from
both regressions declined as country and year fixed effects were incorporated. This implies that
there was a positive correlation between these previously unobserved variables and the main
coefficient, which, after being accounted for, introduced no

What Are The Pros And Cons Of Dark Pools
Several different names referring to dark pools, "upstairs market," "dark liquidity" or "dark pool
liquidity."
Dark pools get their name from that the details of the trade are concealed from the public. Dark
pools is a term for private forums or exchanges for trading securities, they are not accessible by the
investigating public and therefore they lack transparency. Dark pools gives the opportunity to
facilitate block trading between institutional investors who don't want to impact the market price
with their large orders which could consequence the price of the trades. Hence dark pools gives the
Institutional sellers a better chance getting a buyer for the whole blocks of shares than normal
exchanges hence Dark pools are dedicated to large ... Show more content on Helpwriting.net ...
NYSE Euronext (exchange owned) and Liquidnet (broker owned). Act as a Agents and not as
principal. The prices are derived from Exchanges E.g. National Best Bid and Offer (NBBO).
Pros and Cons Dark Pools
The advantages of Dark pools are the reduced market impact for large orders. Large orders still have
market impact but the impact will be smaller and comes later than on normal exchanges. E.g. if the
buyer or seller is a Public pension fund they need to be upfront with the trade and announce it after
the trade has been done and the market price may be affected by this large trade.
Another advantage of Dark pools is that transaction cost might be lower.
There are some Cons and drawbacks of Dark pools, one of the drawbacks is that there is no
guarantee that the pool participants get the best price. This is the con part of the lack of transparency
that Dark Pools offer. Another problem with Dark pools is that if the amount of Broker–Dealer
owned and Market Maker Dark pools trading continue to grow the price on the exchange may no
longer reflect the actual market. After a large trade has been made in a Black pool and is announced
the price may fall and the buyer can therefore have paid too much for the shares. Other Cons of
Dark pools are that they are vulnerable to predatory High Frequency traders using "pinging" and
other tactics trying to find underlying large

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Relationship Between Investment and Cashflow: Evidence from Lewellen and Lewellen (2014