Pension fund management: a global perspective, Financial Management

Pension Fund Management: A Global Perspective

Pension funds are known worldwide more for their social security element. They have assumed more importance from the day the private sector has started replacing the state. In a pension fund system, any employee working with the state enterprise was saving in bits and pieces in the pension funds and was assured of his social security needs once he retired. In the absence of such a system, the employees have to save on their own and perhaps sometimes put in more hours of work to sustain. But with pension funds, employees of both state and private sector are assured of their future safety.

Over the last century, pensions have extended financial support to millions of retired people all over the world. However, due to the continuous bearish trend in the financial markets, most pension funds have turned red. The growing mismatch of assets and liabilities in pension funds has raised serious concerns about the future of the retirees.

Social security has been assuming centerstage ever since the collapse of the stock markets in the year 2000. Though initially, very few people were worried about the future of their social security, it has now transformed into a big crisis. A large population across the world is seriously affected by depreciation of funds investments. Pension funds riding high on the bull market of the late 1990s have promised more returns to investors than what can be really affordable.

 

Posted Date: 9/11/2012 1:44:12 AM | Location : United States







Related Discussions:- Pension fund management: a global perspective, Assignment Help, Ask Question on Pension fund management: a global perspective, Get Answer, Expert's Help, Pension fund management: a global perspective Discussions

Write discussion on Pension fund management: a global perspective
Your posts are moderated
Related Questions
Q. What is Estate Tax? Estate Tax - Tax on the value of a DECENDENT'S taxable estate, usually defined as the decedent's ASSETS less LIABILITIES and certain expenses that may in

The following is the existing capital structure of Company XYZ Ltd. Ordinary shares at Shs.10 par 1,000,000 Retained 800,000 12% preference shares Shs.10 par 400,000 16% loan Shs.1

A Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds in May 1995 while the exchange rate was 80 yen per dollar. The insurance company liquidated the investment

Fund Managers or the Asset Management Company (amc) The role of fund managers is highly significant in the mutual fund operations. So far, this role is being played by the Mutu

what is Substantive tests or transactions based auditing Tests to attain audit evidence to detect material misstatements in financial statements. Using analytical procedures an

#questi Saven Travel Corporation is considering several investment opportunities in order to diversify its operations. Mr. Saven, president, is trying to determine the firm''''s co

What is the role of securities firms in investment intermediaries? Securities firms assist within the trading of existing securities into the secondary markets. The two major c

The stocks of Microsoft and Apple have a correlation coefficient of 0.6.  The variance of Microsoft stock is 0.4 and the variance of Apple stock is 0.3.  What is the covariance bet

Q. Explain demerits of accept-reject criteria? Demerits of ARR:- (i) It utilizes accounting income rather than cash flows: - The principal short coming of ARR schema is th

Issuer's Considerations Cash Flows: Issuers may consider the period for which the funds are required and try to spread the borrowings in a way to minimize the costs. Generally,