Weekly Index Numbers-Measuring Business Activity

1940 ◽  
Vol 13 (3) ◽  
pp. 234
Author(s):  
Guenther Baumgart
Keyword(s):  
Business Activity ◽  
Index Numbers

Investment Policy and Index Numbers

1954 ◽  
Vol 23 ◽  
pp. 379-453
Author(s):  
H. W. Haycocks ◽  
J. Plymen
Keyword(s):  
Investment Policy ◽  
Group Index ◽  
Business Activity ◽  
Current Position ◽  
Index Numbers ◽  
Trade Cycle ◽  
Share Prices ◽  
Market Factors ◽  
Comparative Results ◽  
Ordinary Share

SynopsisIt is more than 25 years since the subject of Index Numbers and their application to Investment Policy was last discussed by the Faculty (See C. M. Douglas, T.F.A. 12 and A. C. Murray, T.F.A. 13). When these papers were written, ordinary shares were only just beginning to be recognised as suitable investments for Life Assurance Funds. Douglas and Murray anticipated that as ordinary shares became more popular with the offices, index numbers would be useful for the following purposes:—(1) Assessing the current position relative to the trade cycle; if this could be achieved, the timing of share purchases and sales would be greatly facilitated.(2) Comparing the prospects for the different industries.As a result of these original papers, the Actuaries Index Service commenced in 1930.In this paper, the authors review developments that have taken place in investment policy over the last 25 years, and study the contribution to these policy considerations that the Actuaries Index and other Index Numbers can provide. The paper is divided into five parts as follows:—Part I deals with the various economic and market factors which affect the level of share prices; usually share prices are closely correlated with the level of business activity. Sometimes, however, as in 1949 share prices fall, due to conditions overseas, without a corresponding decline in business activity. Practical uses of the Index are discussed in Part II. Particulars are given of the numerous applications of Share Indexes to problems arising in day-to-day investment management. In this part also, the authors describe certain techniques, developed to deal the first objective of Douglas and Murray (i.e. that of assessing the current position relative to the trade cycle). It is suggested that these techniques, which involve comparison of the Share Index with Activity Indexes, and with the Financial Times Industrial Profits Tables, merit investigation, and provide an interesting field for research. Finally, details are given of an investigation into the results of a portfolio of ordinary shares held over 25 years. This investigation shows that the appreciation of ordinary shares, both as regards capital and dividends, has to a large extent kept in step with the very considerably increased cost of living, sustained during this period.In Part III, reference is made to recent Institute Papers, where the principle has been developed of selecting investments according to the “expected yield” (See J. B. H. Pegler, J.I.A. 74 and H. G. Clarke, J.I.A.80). An attempt is now made to extend these ideas and consideration is also given to the link up between the “expected yield” of an ordinary share, the “earnings yield”, and the return provided by new money invested in the company concerned. Part III concludes with an investigation, based on Actuaries Investment Index data, showing the comparative results of purchasing shares carrying low, medium or high dividend yields. For the period 1950 to 1955, the advantage appeared to lie with that group of shares providing the lowest dividend yield (but presumably affording exceptional earnings or growth prospects).The construction and maintenance of Index Numbers are discussed in detail in Part IV. This Part deals with the initial selection of the securities, the methods of weighting, averaging and grouping, together with the procedure for keeping the Index up to date. For this purpose, the methods used by the Actuaries Index are compared with the corresponding procedures employed for the Share Index of the London and Cambridge Economic Service.The authors' conclusions regarding Investment Policy are discussed in Part V. Their main points are:—(1) For the Institutional investor, interested largely in income, a well spread and managed ordinary share portfolio should produce over the long-term a much higher return than fixed interest investments.(2) To build up and maintain such a share portfolio to the best advantage, an active policy should be pursued, keeping the “expected yield” as high as possible. For this purpose, the Actuaries Industrial Group Index Tables should be of use, to keep the maximum interest in the more progressive industries, and to reduce participation in the declining trades.

The Actuarial Background to Investment Policy

1985 ◽  
Vol 40 ◽  
pp. 445-489
Author(s):  
J. Plymen
Keyword(s):  
Future Trend ◽  
Investment Policy ◽  
Business Activity ◽  
Index Numbers ◽  
Equity Prices ◽  
Trade Cycle ◽  
Share Prices ◽  
Policy Consideration ◽  
The Future ◽  
Classical Paper

Nearly 60 years ago, the late C. M. Douglas F.F.A. published a classical paper “The Statistical Groundwork of Investment Policy” (T.F.A. 12 p.173).The main policy consideration, discussed by Douglas, was the extent to which offices should invest in equities. He maintained that funds should only be invested in equities if greater security was therefore obtained. From a study of index numbers covering the period 1924-28 Douglas concluded that share prices were related to the level of business activity i.e. to the progress of the ‘Trade Cycle’; equity prices following the cycle directly, the debenture prices following the cycle inversely, but with a different tempo and interval. If, therefore, an investor could judge the future trend of business activity, a sound investment policy could be pursued.

Investment Policy and Index Numbers

1956 ◽  
Vol 82 (3) ◽  
pp. 333-390 ◽  
Author(s):  
H. W. Haycocks ◽  
J. Plymen
Keyword(s):  
Future Trend ◽  
Investment Policy ◽  
Business Activity ◽  
Index Numbers ◽  
Equity Prices ◽  
Trade Cycle ◽  
Share Prices ◽  
Policy Consideration ◽  
The Future

We have chosen Investment Policy and Index Numbers as the title of this paper, because the origin of the Actuaries' Investment Index is to be found in a paper, The Statistical Groundwork of Investment Policy, by the late C.M. Douglas (T.F.A. 12, 173).The main policy consideration discussed by Douglas was the extent to which offices should invest in equities. Douglas maintained that funds should only be invested in equities if greater security was thereby obtained. To establish the suitability of equities, it was necessary to study the relative variations in equity prices, debenture prices and business activity. For this purpose, index numbers were required.From a study of index numbers covering the period 1924-28 Douglas concluded that share prices were related to the level of business activity, i.e. to the progress of the ‘trade cycle’, equity prices following the cycle directly, and debenture prices following the cycle inversely, but with a different tempo and interval. If, therefore, an investor could judge the future trend of business activity, a sound investment policy could be pursued.In this paper we propose to review some of the developments that have taken place in the principles and practice of investment policy over the last twenty-five years, and to study the contribution to these principles that the Actuaries' Investment Index and other index numbers can provide. In addition, we propose to review the methods used in the construction and maintenance of the Actuaries' Investment Index in the light of current conditions.

ECOLOGY AND SUSTAINABLE DEVELOPMENT IN LOCAL BUSINESS:SIMULATION OF LOW IMPACT DEVELOPMENT IN SURAKARTA REGENCY

2018 ◽  
Vol 4 (1) ◽  
pp. 32-38
Author(s):  
Bhimo Rizky Samudro ◽  
Yogi Pasca Pratama
Keyword(s):  
Water Resources ◽  
Water Resources Management ◽  
River Flow ◽  
Low Impact Development ◽  
Development Model ◽  
Business Activity ◽  
Resources Management ◽  
Central Java ◽  
Specific Culture ◽  
Central Java Province

This paper will describe the function of water resources to support business activities in Surakarta regency, Central Java province. Surakarta is a business city in Central Java province with small business enterprises and specific culture. This city has a famous river with the name is Bengawan Solo. Bengawan Solo is a River Flow Regional (RFR) to support business activities in Surakarta regency. Concious with the function, societies and local government in Surakarta must to manage the sustainability of River Flow Regional (RFR) Bengawan Solo. It is important to manage the sustainability of business activity in Surakarta regency.   According to the condition in Surakarta regency, this paper will explain how the simulation of Low Impact Development Model in Surakarta regency. Low Impact Development is a model that can manage and evaluate sustainability of water resources in River Flow Regional (RFR). Low Impact Development can analys goals, structures, and process water resources management. The system can also evaluate results and impacts of water resources management. From this study, we hope that Low Impact Development can manage water resources in River Flow Regional (RFR) Bengawan Solo.  

Oil, Rates and Inflation

2005 ◽  
pp. 4-20
Author(s):  
E. Yasin
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Raw Materials ◽  
Gdp Growth ◽  
Business Activity ◽  
Demand For Money ◽  
Percentage Points

Currency inflow in Russia from raw materials exports allows taking into account high business activity to assimilate growing money supply transforming it into economic growth. Fall in business activity as a result of pressure on business led to saturation of demand for money. This considerably increases the danger of inflation growth and requires sterilization of excess money supply including the usage of the Stabilization Fund. According to the author's estimates, corresponding losses in GDP growth will equal 1-2 percentage points per year.

Tax Consulting as a Tool to Support Business Activities of Organizations

2018 ◽  
Vol 11 (3) ◽  
pp. 146-152
Author(s):  
L. M. Baburyan
Keyword(s):  
Business Development ◽  
Business Activity ◽  
Service Economy ◽  
Tax System ◽  
Dominant Logic ◽  
Separate Area ◽  
Research Findings ◽  
The Subject ◽  
Business Entities ◽  
Corporate Business

The subject of the research is tax consulting aimed at ensuring the proper business activity of organizations. The purpose of the research was is to substantiate the need for the tax consulting as a special tool for supporting corporate business activities. The paper deals with the current specifics of the tax consulting as a separate area of the service economy within the framework of the service-dominant logic concept that reflects the degree of involvement of all participants of financial relations in the tax consulting processes. From the standpoint of institutionalism, the tax consulting institution is regarded as a financial intermediary performing mediation or auxiliary functions to ensure interactions between basic agents of the economic system, in particular, communications between the state and business entities. Based on the research findings, it is concluded that a developed tax consulting institution as an integrated attribute of the tax system determines the levels of corporate business activities and business development. The research findings are intended for participants of the tax consulting and auditing market.

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