Organizational structure of pension funds, Financial Management

Organizational Structure of pension funds

In an investment organization such as pension funds, endowments, life and casualty insurance companies, the central bank's investment professionals are responsible for implementing asset portfolios as these organizations face several challenges. As the pension funds comprise the highest net worth of managing fund, they should be more cautious about the investment. Investment management companies should have the expertise to deal with different types of investors as well as the ability to resolve various investment issues the sponsors encounter. These issues include - strategic asset allocation, risk management, portfolio construction, and performance measurement and attribution. Investment management companies at times have to face increasing demands from institutional investors, and may be forced into an activity in which they have no comparative advantage in an attempt to satisfy large investors.

Governance and Organization Structure

A pension fund is operated and advised by a mix of internal and external experts (i.e., agents); it must be governed and monitored by a body of people who have accepted the responsibility to keep the stakeholder "value creation" as their business goal clearly in mind. In a pension fund, members of the board of trustees are the governors of the fund. They are responsible for the governance and ultimately for the investment result. A board or an oversight committee have the overall responsibility for developing the long-term asset mix, providing guidelines for investment strategy, and reviewing performance of the fund. Trustees must sort out who the stakeholders in the pension plan are (i.e., retirees, active plan members, shareholders or taxpayers), and what loyalties they owe and to whom.

 

Posted Date: 9/11/2012 1:38:53 AM | Location : United States







Related Discussions:- Organizational structure of pension funds, Assignment Help, Ask Question on Organizational structure of pension funds, Get Answer, Expert's Help, Organizational structure of pension funds Discussions

Write discussion on Organizational structure of pension funds
Your posts are moderated
Related Questions
Q. Illustrate the Operating Leverage? Operating Leverage: - The operating leverage perhaps defined as the tendency of the operating profit to differ disproportional with sales.

The graphical method is a simple one, and is the most easily understood of the several linear programming methods. A thorough knowledge of the graphical procedure

Factors to consider in a takeover/ merger Before a company decides to merge or acquire the following considerations should be taken: Rejection of bid by ta

Q. Security offered -  influence the rate of interest ? The rate of interest charged on the loan will be lesser if the debt is secured against an asset or assets of the company

The total return in case of mortgage-backed and asset-backed securities depend on the projected principal repayment and the interest earned on r

Explain the Types of Debt Securities There are many types of debt securities available in market.  The range includes Government Securities, Deep discount bonds, Deben

The values shown in ordinary annuity tables (either present value or compound value) can be adjusted to the annuity due form by ____ the ordinary annuity interest factor by ____. (

Keys Printing plans to issue a $1,000 par value, 10-year noncallable bond with a 5.00% coupon, paid semiannually. It should sell at par. The company''s marginal tax rate is 40.00%

Provide an argument for including or not current liabilities in the cost of capital calculation.

Q. What is Lending System? Under the note lending system, the borrower takes a loan, usually of 90 days Duration, against a promissory note. The loan may be renewed or retired