A Review of Norges Bank's Active Management of the Government Pension Fund Global

2018 ◽  
Author(s):  
Magnus Dahlquist ◽  
Bernt Arne degaard
Keyword(s):  
Pension Fund ◽  
Active Management ◽  
The Government

scholarly journals Private pension funds: passivity at active fund prices

2017 ◽  
Vol 29 (76) ◽  
pp. 148-163 ◽  
Author(s):  
Carlos Heitor Campani ◽  
Leonardo Mesquita de Brito
Keyword(s):  
Pension Funds ◽  
Private Pension ◽  
Active Management ◽  
Style Analysis ◽  
Market Segment ◽  
Management Fees ◽  
The United Kingdom ◽  
Asset Classes ◽  
The Government ◽  
Filter Analysis

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

scholarly journals FINANCIAL STABILITY OF THE SOLIDARITY PENSION SYSTEM IN UKRAINE

2019 ◽  
pp. 471-480
Author(s):  
О. Сhebereyako ◽  
◽  
V.. Bykova
Keyword(s):  
Financial Stability ◽  
Social Insurance ◽  
Pension Fund ◽  
Pension System ◽  
The Elderly ◽  
Government Budget ◽  
The Public ◽  
Revenue Collection ◽  
Accumulation System ◽  
The Government

The article is devoted to actual issues of public finance – old-age income support and social security in the twenty-first century. For this reason, government has tried to guarantee old-age’s pension eligibility. In our country pension system is presented with three-level pension system, which join mandatory and voluntary components – solidary system (first level), compulsory accumulation system (not exist now) and private pension system. According to Ukrainian’s pension model, basic and minimum pensions are funded by solidary system or PAYG (“Pay-As-You-Go”) system. As the results, maintains of sufficient financial resources of Pension fund’s budget is very important for financial stability of pension system. The authors show the relationship between sufficient financial support for the elderly in Ukraine and the financial capacity of the solidarity pension system. It was found that in order to form a financially stability pension system, it is necessary to ensure a sufficient amount of own pension fund revenues and avoiding deficit of the Pension Fund’s budget. So, the main indicators of current PAYG system in Ukraine include the public pension expenditures and deficit of the Pension Fund. The article presents dynamics of revenues to the Pension Fund of Ukraine and structure of own pension fund revenues and allocations from the government budged. According to author’s research, the main source of revenue collection of the Pension fund’s budget in Ukraine is the budget’s transfers. О. Чеберяко, В. Бикова ISSN 2078-5860 ФОРМУВАННЯ РИНКОВОЇ ЕКОНОМІКИ В УКРАЇНІ. 2019. Вип. 41 480 The budget expenditures in the structure of income of the pension fund are also analyzed. The total amount of the government budget expenditures that are directed to financing the pension fund are about twenty percent. In our opinion, the key reasons of the “lack of own income” are the shadowing of the economy, the macroeconomic situation, the low minimum wage, the existence of a limit on the maximum amount of wages, which accrues percent of social contribution. As a conclusion, the authors suggest measures for solving the issue of “lack of own income” of the Pension Fund of Ukraine – rising the retirement age, labor market’s reforming, increasing insurance fees and implement compulsory accumulation system. The analytical materials and conclusions can be useful for following researches of finding solutions for achieving the financial stable Pay-You-Go system. Key words: pension system, The Pension fund, social insurance payments, deficit of The Pension fund, government budget.

South Africa’s PIC faces major overhaul

2019 ◽  
Keyword(s):  
Pension Fund ◽  
Economic Empowerment ◽  
Economic Policies ◽  
Government Employees ◽  
Major Overhaul ◽  
Content Type ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
The Government

Significance The PIC oversees approximately 142 billion dollars, mostly on behalf of the Government Employees Pension Fund (GEPF). While the GEPF’s assets are still comfortably greater than its liabilities, its surplus has been falling in recent years, with several questionable investments coming to light. Impacts Inquiry revelations could weaken support for government economic policies, such as prescribed assets, from traditional allies. The GEPF’s push to invest more funds overseas could have major implications for how much money the PIC manages and its future investments. The Commission's major long-term impacts could include a serious rethink of the ANC's black economic empowerment (BEE) economic policies.

China will drag feet on urgent pension reform

2019 ◽  
Keyword(s):  
Social Sciences ◽  
Pension Fund ◽  
Pension Reform ◽  
Pension Funds ◽  
The Self ◽  
Content Type ◽  
Younger Workers ◽  
Urban Worker ◽  
The Government ◽  
New Research

Subject Pension reform in China. Significance China's main pension fund could be completely depleted as early as 2035. New research published by the Chinese Academy of Social Sciences (CASS) predicts that expenditure from the urban worker basic pension fund will begin exceeding contributions in 2028, after which reserves will decline exponentially and could be exhausted within eight years. The government has already introduced measures to address the most pressing problems, such as the gross imbalance between regional pension funds and the failure of employers to contribute to the scheme. Impacts Younger workers will rely on their own savings and investment schemes, having little faith in the government pension. Rural residents, the self-employed and precariously employed have little or no meaningful state-backed pension. International insurers will eventually be allowed to enter China's private pension sector.

Three Steps to Heaven? Tensions in the Management of Welfare: Retirement Pensions and Active Consumers

2005 ◽  
Vol 35 (1) ◽  
pp. 77-96 ◽  
Author(s):  
KIRK MANN
Keyword(s):  
Risk Assessment ◽  
Welfare Reform ◽  
Portfolio Management ◽  
Pension Fund ◽  
Fund Management ◽  
Citizenship Rights ◽  
Lifestyle Choice ◽  
Pension Fund Management ◽  
Working Practices ◽  
The Government

This article explores some of the emerging tensions in the management of welfare in Britain. The success of Labour's proposals for welfare reform, particularly retirement pensions, hinges on their ability to promote the idea of the consumer citizen and to undermine traditional ideas of citizenship rights. However, managing this transition – including the presentation of ideas and the management of consumers – has not been straightforward. While the Government presents retirement as a matter of lifestyle choice, welfare ‘consumers’ are demanding more of their providers and are regularly disgruntled with the response.Simultaneously, pension providers are expressing reservations about their ability to manage aggrieved consumers. Furthermore, they believe pension fund management has been politicised, and their scope for discretion reduced by regulation, while technical and scientific developments in terms of portfolio management and risk assessment have changed the working practices of those in the pension industry. These tensions between consumers, providers and legislators may generate further dissatisfaction with the balance of rights and responsibilities being hotly contested.

scholarly journals A Review of the Active Management of Norway's Government Pension Fund Global

2022 ◽  
Author(s):  
Rob Bauer ◽  
Charlotte Christiansen ◽  
Trond Døskeland
Keyword(s):  
Pension Fund ◽  
Active Management

scholarly journals Pension Fund: A Veritable Source of Financing Real Estate Development in Nigeria

2014 ◽  
Vol 23 ◽  
pp. 23-40 ◽  
Author(s):  
Adjekophori Bernard
Keyword(s):  
Real Estate ◽  
Pension Fund ◽  
Sampling Technique ◽  
Pension Funds ◽  
Capital Outlay ◽  
Pension Scheme ◽  
Real Estate Development ◽  
Professional Advice ◽  
Real Estate Developers ◽  
The Government

Pension funds control relatively large amounts of capital and represent the largest institutional investors in many nations. Financing real estate on the other hand required a huge capital outlay. This study examined the viability of pension funds as an investment option in real estate development. It is empirical in approach and it adopted a survey research design. A convenient random sampling technique was used to gather data from a sample of 42 respondents comprising of 18 pension administrators and 24 Real Estate Developers and Investors. A structured questionnaire was used as the instrument for data collection and a simple descriptive statistical method was use for presentation and analysis of the data. The results however reveal that both the pension administrators and the real estate developers agreed that the pension funds if well channel is a veritable means for financing real estate project. We therefore recommends amongst others that the government as a matter of urgency should slack their policy to increase the percentage of the funds for real estate development and to also advance a policy with strict guideline empowering the pension fund managers to directly grant credit to developers and real estate investors who is able to meet and comply with the conditions provided in such policy. Real estate brokers and experts should also be drafted into the pension scheme to give professional advice on the viability and feasibility of any proposed real estate development.

The Grand Experiment: The State and Municipal Pension Fund Diversification into Alternative Assets

2018 ◽  
Keyword(s):  
Lower Risk ◽  
Pension Fund ◽  
Low Cost ◽  
Third Party ◽  
Active Management ◽  
Publicly Traded ◽  
Diversification Strategy ◽  
Management Fees ◽  
Public Pension Fund ◽  
Asset Allocations

Over a nine-year period (2008–2016), state and municipal pension funds embarked on a grand experiment. They boosted their commitments to alternative assets, spending tens of billions of dollars per year on additional third-party money management fees. The funds’ diversification strategy covered a variety of tactics involving mostly private, but some public, assets. The ostensible purpose of this expenditure was to realize both (i) greater returns and (ii) lower volatilities than those that were produced by the low-cost indexing of publicly-traded investments, which mimicked the funds’ actively-managed asset allocations. This paper compares aggregate public pension fund returns and volatilities, over differing time periods, with a series of institutional benchmarks and replicating indexes. We conclude that the states and municipalities obtained neither lower risk nor higher returns with the higher level of active management and diversification implied by alternative assets. The experiment is thus a failure.

National Pension Scheme in India: Functions and Performance

2021 ◽  
pp. 205-208
Author(s):  
Nandkumar Baburao Bodhgire
Keyword(s):  
State Government ◽  
Pension Fund ◽  
Pension Scheme ◽  
Government Employees ◽  
Fund Managers ◽  
The Government ◽  
And Performance

National Pension Scheme is a mandatory for all central and state government employees who joined in services after 2005. Although the scheme is implemented in 2006, most of the government employees are unknown about the benefit of the same scheme. Hence, this paper highlights functions of national pension scheme and performance of pension fund managers in terms of its return in 2020. ANOVA tool is employed for analyzing differences in return by pension fund managers. The study is concluded that HDFC pension fund gives more return other than pension fund.

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