scholarly journals Employees’ Shariah Provident Fund in Malaysia: A Juristic Analysis

2020 ◽  
Author(s):  
International Journal of Fiqh and Usul al-Fiqh Studies
Keyword(s):  
Pension Fund ◽  
Retirement Savings ◽  
Financial Assets ◽  
Financial Return ◽  
Analytical Approaches ◽  
Agency Contract ◽  
Provident Fund

The purpose of this article is to analyze the experience of the Employees’ Provident Fund or EPF in the management of the Shariah Fund and the jurisprudential adaptation of its activities and investments. This article selects the EPF in Malaysia as a model for analysis as a successful financial project. This article uses both inductive and analytical approaches to achieve its objectives. Malaysia's Shariah Retirement Savings Fund for workers needs to develop Shariah-compliant investment methods to achieve the objective of investing the savings of contributing members with a good financial return so that the members’ financial assets in the fund will increase. The article reveals that the Malaysian Workers’ Provident Pension Fund was developed on the wakālah (agency) contract which matches the nature of the fund's activities with its rich, flexible and secure features

scholarly journals Pension fund regulation: Unintended consequences of foreign investment restrictions in an emerging market economy

2016 ◽  
Vol 6 (4) ◽  
pp. 485-493
Author(s):  
Coert Frederik Erasmus ◽  
Johan van Huyssteen
Keyword(s):  
Foreign Investment ◽  
Pension Fund ◽  
Emerging Market ◽  
Unintended Consequences ◽  
Foreign Asset ◽  
Retirement Savings ◽  
Investment Allocation ◽  
Developed Markets ◽  
Investment Returns ◽  
Provident Fund

Retirement savings allow investors to earn income after retirement by saving while being part of the workforce. Retirement savings comprise the largest portion of retirement savings and should be safeguarded by effective regulation. To safeguard retirement savings, exposure to foreign asset investments is limited. However, in an emerging economy, limiting foreign asset investments, especially investment in developed markets, could hamper the potential investment returns due to the translation risk. To assess the effect of translation risk, a preservation provident fund was used in the present study to determine whether the returns of this preservation provident fund would be adversely affected by investment allocation regulation. The findings indicated how the translation effect affected the preservation provident fund, illustrating the adverse unintended consequences of investment regulation in emerging market economies. Consequently, regulators should reconsider the maximum allowed foreign asset investment in pension fund regulations to enhance investment returns from foreign asset investments

scholarly journals Optimization of Financial Asset Neutrosophic Portfolios

Mathematics ◽  
2021 ◽  
Vol 9 (11) ◽  
pp. 1162
Author(s):  
Marcel-Ioan Boloș ◽  
Ioana-Alexandra Bradea ◽  
Camelia Delcea
Keyword(s):  
Capital Market ◽  
Financial Risk ◽  
Financial Asset ◽  
Financial Assets ◽  
Portfolio Risk ◽  
Financial Return ◽  
Additional Information ◽  
Triangular Numbers ◽  
The Capital Market

The purpose of this paper was to model, with the help of neutrosophic fuzzy numbers, the optimal financial asset portfolios, offering additional information to those investing in the capital market. The optimal neutrosophic portfolios are those categories of portfolios consisting of two or more financial assets, modeled using neutrosophic triangular numbers, that allow for the determination of financial performance indicators, respectively the neutrosophic average, the neutrosophic risk, for each financial asset, and the neutrosophic covariance as well as the determination of the portfolio return, respectively of the portfolio risk. There are two essential conditions established by rational investors on the capital market to obtain an optimal financial assets portfolio, respectively by fixing the financial return at the estimated level as well as minimizing the risk of the financial assets neutrosophic portfolio. These conditions allowed us to compute the financial assets’ share in the total value of the neutrosophic portfolios, for which the financial return reaches the level set by investors and the financial risk has the minimum value. In financial terms, the financial assets’ share answers the legitimate question of rational investors in the capital market regarding the amount of money they must invest in compliance with the optimal conditions regarding the neutrosophic return and risk.

Sustainable pensions, democratic governance, and EU law

2021 ◽  
pp. 138826272110303
Author(s):  
Ewan McGaughey
Keyword(s):  
Best Practice ◽  
Pension Fund ◽  
Conflicts Of Interest ◽  
Retirement Savings ◽  
Eu Law ◽  
Member States ◽  
Eu Directive ◽  
Wide Experience ◽  
Elected Representatives ◽  
Asset Managers

The quality of democracy in our economy depends on the governance of capital, but Europeans are still deprived of real voice over their retirement money: the single biggest source of capital in the 21st century. This paper outlines three major problems facing EU pensions: precarious retirement, escalating inequality, and mounting climate damage. These problems start with the places where we work, the institutions that control our retirement savings, and the votes on shares that come with them. The central argument is that pensions will only be sustainable once they are democratically, prudently, and loyally governed. First, member states have wide experience with co-determination in capital funds, which can inform the basis of minimum standards in EU law for ‘pension fund democracy’. Second, a growing number of investment rules draw upon Member States’ fiduciary duties and standards for prudence or care; but, these do not yet codify the requirement that beneficiaries’ environmental, social, and governance preferences are followed. Third, votes on shares - bought with pension fund assets - are still being cast by banks and asset managers who manage ‘other people’s money’. This is a serious problem because banks and asset managers have interests that systematically conflict with the ultimate investors: they vote in companies on other people’s money and, at the same time, sell financial products (e.g., pensions) to those companies. The problems are soluble with careful amendments to existing policy that ensure elected representatives of pension beneficiaries are the sole determinants of voting policies, with prudence and no conflicts of interest. A draft EU Directive, based upon emerging best practice, is proposed.

Free movement of workers and the RESAVER scheme for researchers

2017 ◽  
Vol 19 (2) ◽  
pp. 172-185 ◽  
Author(s):  
Maria-Cristina Degoli
Keyword(s):  
Qualitative Methodology ◽  
Pension Fund ◽  
Financial Sustainability ◽  
Successful Implementation ◽  
Retirement Savings ◽  
Pension Systems ◽  
Cross Border ◽  
Free Movement Of Workers ◽  
Key Features ◽  
The Creation

This paper aims to introduce the key features of the Retirement Savings Vehicle for European Research Institutions (RESAVER) that went live in September 2016. The pension fund was established for European researchers to allow them to accumulate their retirement provisions in one place, while changing jobs and moving between countries. The research used a qualitative methodology, analysing documents and legislation concerning social security in Europe. It describes how the measures taken by Member States to deal with the challenges facing the financial sustainability of pension systems are creating obstacles to workers’ mobility. The analysis of the feasibility study for the creation of a pan-European pension vehicle shows that it is possible to achieve a minimum harmonisation in pension rights. The successful implementation of this Retirement Savings Vehicle is likely lead to two main results. First, it could dissolve existing barriers to workers’ mobility and, secondly, it could ensure the financial adequacy for future pensions. In addition, it is highly likely that such cross-border pension product would foster the creation of a true European labour market.

Perceptions and expectations of pension savings adequacy: a comparative study of Dutch and American workers

2010 ◽  
Vol 30 (5) ◽  
pp. 731-754 ◽  
Author(s):  
HENDRIK P. VAN DALEN ◽  
KÈNE HENKENS ◽  
DOUGLAS A. HERSHEY
Keyword(s):  
Financial Planning ◽  
Pension Fund ◽  
Future Orientation ◽  
The United States ◽  
Insurance Companies ◽  
Retirement Savings ◽  
Social Forces ◽  
Perceptions And Expectations ◽  
Married Workers ◽  
To Receive

ABSTRACTWhat drives the perceptions of pension savings adequacy and what do workers expect to receive when they retire? These questions are assessed among married workers using an identical survey distributed to Dutch and American workers in 2007. Despite marked differences in expected pension replacement rates – where the Dutch replacement rates are systematically higher than the American rates – the perceived savings adequacy is more or less the same across Dutch and American workers. In both countries, about half of the respondents were confident they had amassed sufficient retirement savings. Individuals' perceived savings adequacy was found to be influenced by three groups of factors: trust in pension institutions (pension funds, banks, insurance companies and governments), social forces and psychological dispositions. This study shows that differences in the dispositions of workers (with respect to future orientation and financial planning) played a far larger role in explaining differences in perceptions of savings adequacy in the United States than in The Netherlands. Dutch workers rely and trust their pension fund and seem to leave thinking about and planning for retirement to its managers.

Strategic Role of Pension Fund Administrators in Motivating Contributors’ Interests in the Nigerian Pension Scheme

2020 ◽  
Vol 10 (2) ◽  
pp. 553
Author(s):  
Helen JEVWEGAGA ◽  
Ayodotun Stephen IBIDUNNI ◽  
Maloma David AKINNUSI
Keyword(s):  
Customer Service ◽  
Pension Fund ◽  
Pension Scheme ◽  
Retirement Savings ◽  
West Region ◽  
South West ◽  
Strategic Role ◽  
Pension Benefits ◽  
Structured Questionnaire

The focus of this research was to determine the strategic role of Pension Fund Administrators (PFAs) in motivating contributors’ interests in the Nigerian pension scheme. Effort was made to ascertain the extent of payment of pension benefits to contributors as and when due and to also ascertain the level of payment of interests and bonuses to the contributors on funds invested as and when due. The study utilized structured questionnaire to obtain data from active Retirement Savings Account (RSA) holders and pensioners based on their perceived interests on pension matters in Nigeria. A total of 168 RSA holders and 149 pensioners were purposively and randomly selected for the study within the South-West region of Nigeria. From the application of the regression technique, the data analysis revealed that prompt payment of pension benefits and contributions by PFAs significantly influence contributors’ motivation in the pension scheme. Also, the result showed that payment of interests and bonuses on pension funds invested has a significant effect on the contributors’ satisfaction with the pension scheme. Therefore, the study recommended that PFAs should devise means to educate the beneficiaries on the modalities for calculating pension allowances so as to improve their customer service initiatives for increased market share, and to regularly update the RSAs of beneficiaries with the interests and other bonuses from pension investments.

Glide Paths Based on a Retirement Goal and Depleting Human Capital

2019 ◽  
Keyword(s):  
Human Capital ◽  
Life Cycle ◽  
Asset Allocation ◽  
Retirement Planning ◽  
Retirement Savings ◽  
Financial Assets ◽  
Dynamic Asset Allocation ◽  
Glide Path ◽  
Input Variables ◽  
Glide Paths

The retirement goals of many Americans are underfunded. The problem is compounded by the complexity of self-managing distribution portfolios, particularly as DC plans replace DB plans. We believe most retirement glide paths are satisfactory but suboptimal solutions. We introduce a glide path of financial assets over the life cycle based on a retirement goal and depleting human capital. The method is anchored to the foundational principles of intertemporal portfolio theory while borrowing heavily from goals-based asset allocation. The result is a dynamic asset allocation over the life cycle that is a function of critical input variables relevant to retirement planning such as retirement savings, retirement consumption and risk aversion. The glide path can be customized to individuals, or semi-customized to discrete subpopulations of DC plan participants.

scholarly journals PENSION INVESTMENT FUNDS ANALYSIS: A VARIANCE-COMPARISON TESTS OF NON-CONTRIBUTORY (PRE) AND CONTRIBUTORY (POST) SCHEMES IN NIGERIA

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Edesiri G. Okoro ◽  
Emma I. Okoye
Keyword(s):  
Service Delivery ◽  
Return On Investment ◽  
Pension Fund ◽  
Pension Reform ◽  
Secondary Data ◽  
Retirement Savings ◽  
Voluntary Contributions ◽  
Investment Funds ◽  
Pension Schemes ◽  
Internal Procedures

In Nigeria, pension was established in 2004 through the Pension Reform Act, 2004 and since then, pension schemes have manifested in twofold: ‘old’ and ‘new’. The Pension Act No. 102 of 1979 is the “old pension” (non-contributory) and Pension Reform Act of 2004 (including the restructured/modified Pension Act, 2014) is the “new pension” (contributory) scheme. In this paper, we comparatively evaluated both the non-contributory (pre) and contributory (post) pension schemes in Nigeria. In order to do this, secondary data of pension investment funds was obtained during the period 1994-2014. Based on the analysis of data, we found that the contributory (post) scheme is healthy, reliable and poised towards helping retirees survive as soon as they retire from service. Thus, the contributory (post) scheme significantly improved as a result of the reform in Nigeria, especially in the area of pension investment funds. On the basis of the findings, it was recommended among others that there should be an unrestricted retirement savings scheme and non-remittance of pension contributions by employers to PENCOM. Also, a better return on investment and service delivery from pension fund administrators should be enhanced so as to enhance pension investments and voluntary contributions. Besides this, the internal procedures should be improved upon so that contributions and returns on pension investments due to retirees can be efficiently and swiftly made from pension fund administrators to pensioners on retirement.

Impact investing will boost global Islamic finance

2015 ◽  
Keyword(s):  
Financial Markets ◽  
Social Impact ◽  
Islamic Finance ◽  
Financial Assets ◽  
Financial Return ◽  
Impact Investing ◽  
Content Type ◽  
Thomson Reuters ◽  
Social Impact Bonds ◽  
Investment Choices

Subject Impact investing and Islamic finance. Significance The share of Islamic financial assets remains limited, currently accounting for just 1.27% of global financial assets, according to the latest Zawya Thomson Reuters report on the 'State of the Islamic Economy'. However, new opportunities are ahead. Impact investing, defined by its ambition of achieving the dual goals of measurable positive social and environmental impact, and financial return, is a rapidly growing segment of international financial markets. It offers unique opportunities for Islamic investors looking for investment choices that meet the goals of an Islamic value-based investment approach. Impacts Impact investing will create impetus for further product development in the Islamic finance sector. New deals are in the pipeline after record innovation in 2015 in social-impact bonds that are compliant with Islamic financial principles. They will increase the attractiveness of the Islamic finance sector to a whole range of investors.

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