Essays on Pension Fund

Essay Question: How different investor types impacts Market Efficiency

Individual investors When individuals talk regarding marketing efficiency, they simply refer to the degree to which the aggregate decisions of all participants in financial markets are accurately reflecting the value of companies and their shares at any given time (Allen and Gale, 2000, pp. 236-255). Therefore, it requires the determination of the intrinsic value of the company while providing a constant update to valuations because new information is becoming familiar. Consequently, the more a financial market becomes accurate, it will be able to price securities and the more efficient it is said to be. Thus the principle of the ...

Introduction

Employer sponsored retirement plans are broadly classified into two categories; defined benefit pension scheme (DB) and defined contribution plans (DC). As the name suggests, in a defined benefit pension scheme, a defined pension is paid to employees every month/quarter after the retirement till the end of life. On the other hand, in a defined contribution plan, employees and employers contribute and invest funds over time to build a retirement fund. Both the schemes are different from the perspective of who bears the risk, growth opportunities of funds and administration and distribution of funds (JCT, 2002). Defined benefit plans are ...

Introduction

Part of the growing diversity in organizations is the difference in the employees’ ages, which translates to differences in work preferences and attitudes, in turn leading to some conflict. However, organizations realize that there’s really more benefit than harm to having a workforce that’s composed of employees from various generations and so they strive to find ways to effectively manage each group.

With Generation Y being the youngest and the most recent to join the workforce, organizations must try to find ways to make the workplace more conducive for this generation as they will likely be the ones ...

Annuities and perpetuities are types of financial instrument, which make payments at regular intervals (parrino & kidwell, 2009). Although both perpetuities and annuities make regular payments, there is a difference in the life span of the financial instruments. Annuities have a finite lifespan while perpetuities have an infinite life span (Grinblatt & Titman, 2002). Examples of annuities are; loan repayment and lottery winning. For loan repayment, the principal and interest are repaid in regular intervals while in lottery winning the winner receives a fixed amount of the winning for fixed period. Example of perpetuity is a charity donation and a pension fund is a pension fund ...

Introduction

Chrysler Group LLC is one of the largest automobile manufacturing companies in the world. Along with General Motors and Ford Motor Company, these three companies are known as the “big three” in the US market. Chrysler is headquartered in Auburn Hills, Michigan. Currently, Chrysler is a wholly owned subsidiary of the Italian Automaker, Fiat S.P.A. The flagship brands of Chrysler are Chrysler 200 and 300, Dodge, Ram and Jeep. The journey of Chrysler was not always smooth. Upon its establishment in 1925, it soon became one of the most popular car brands in USA. From 1930s till late 1950s, it ...

Investment Management

Investment Management

Introduction

This paper entails a discussion of two key principles investment management that are currently in play in today`s financial markets. The first part of the paper entails a discussion on the Capital Asset Pricing Model and its subsequent application to a real life situation. The second part of the paper entails a discussion on assessment of the performances of two respective mutual and pension funds that are invested in Argentinian junk bonds.

According to Levy (2011, pg. 55), the Capital Asset Pricing Model (CAPM) is used in the determination of the required rate of return of various risky assets such ...

Social Security and Social Insurance Research of Chile

This study is dedicated to overview of the social security and social insurance system of Chile. This country performed transition to personal accounts system and social security privatization over 30 years ago. Many researches consider this reform as a big success, because it made the country economy stronger, financial system healthier and provided more protection to the taxpayers. But there’re also some serious issues in the social security system. - Social Security Expenditures: A historical perspective and a graph for it. Chile was one of the pioneer countries in the Western hemisphere that introduced state social security coverage. ...

Introduction

Norway has a mixed economy structure with government controlling the crucial sectors of the economy. The economy growth is majorly sustained by its natural resources. For a long time, the economy export had been supported by shipping. The key industries in the Norwegian economy are the petroleum and natural gas, food processing, textile, and shipping, among others. Norway’s currency is referred as the Norwegian Krone (NOK). Its current GDP stands at $499.98, and the GDP per capita is 53,293. The paper addresses the macroeconomic elements of the Norwegian economy, by looking into the present economic condition, as well as ...

Analyze and discuss the current effects of IFRS on the pension reporting for Coca-Cola and PepsiCo at 2009 year-end.

The two companies; Coco-cola and Pepsi are known for their fierce rivalry amongst themselves. Both the company’s products are highly diversified and they also have widely differing pension plans. The pension can be defined as the money that a person receives at a steady rate once the person retires. The significance of an appropriate pension plan in the company has increased to a great extent over this century. As a result of this, business executives have also started providing more defined constitutional pension plans for their employees. Coca-cola had adopted the cash balance method for reporting the pension plans in their financial ...

Velculescu (2008) reported that Norwegian Oil Fund (Norwegian Government Pension Fund - NGPF) has agreed to purchase a stake on Regent Street buildings in 2010. Despite the investment was considered beneficial NGPF managers expressed a desire to know if there were other opportunities which could be more liquid. This paper aims at consideration of other possible opportunities for investing NGPF monetary funds in UK property. In accordance with Velculescu (2008), NGPF prioritized office and retail investment. Target need for these investments is 35% and 30% while actual allocation equals 15% and 10% accordingly. Also, allocation band of NGPF presupposes additional ...

Real Estate Investment

Investment in real estate is a crucial means of investing government funds. There are various suitable equity vehicles which can enable a government to invest in real estate. Investment in real estate may affect the structure of the global financial markets because it will lead to a stiff competition in the market (Baum, 2009, pp 18). Investment of government pension fund of Norway in real estate is supported by some of the Norwegian investment features which are considered as best practices in the international markets. The aim of the government pension fund in Norway is to save and promote an intergenerational movement ...

1. The three types of illegal business behavior alleged against Bernie Madoff include fraud, money laundering and theft. The first, fraud, involves coercing investors to decide whether or not to invest by giving them information that does not correspond to the reality of their situation. Madoff did this by This is meant to provide a short term gain for the defrauder, but significant losses for investors – the person committing the fraud gets the investment money while providing no return on that investment back to the investors. This is an unethical business practice, due to the fact that it is an ...