Institutional Investors Managing Investment Portfolios. Tieu JD Ngao

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СКАЧАТЬ until the usual time of retirement; while for those who retired members, term plans are calculated based on the average life expectancy of these employees.

      2.1.5. From income tax and capital investment increased recognition of private DB pension plans generally are exempt. Therefore, the plan investment decisions in the context of a specific plan usually do not care to factor taxes. However the contribution of the business activities related to tax issues as well as the termination of the plan and form of payment to the beneficiary while the pension fund's investment activities not related to DB tax. However, Example 3-6 illustrates a case where the tax issues arising.

      2.1.6. All legal issues pension plans are regulated by the laws and regulations affecting the investment policy. Almost all countries that allow or offer of private investment portfolio are set out some of the legal framework on the structure of the fund or plan. In the U.S., the business plan and the plans many employers are governed by ERISA, but the plans of the government, local or union is not under management. In the U.S., union pension plans are regulated by the Labour Code Taft-Hartley. An important aspect of ERISA is that it eliminates the local government and law, whereby the pension plan subject to regulation by a management agency. Both ERISA and the laws generally specify the level of concern that pension plan sponsors must ensure investment decisions.

      Guardian of a pension plan is an example of a trustee - the one who has the trust and responsibility to stakeholders (from the Latin word origin - fiducia - meaning " thought "). A legal guardian is responsible to ensure assets are managed only for the benefit of the beneficiaries (for a retirement pension plan participants). Depending on the authority of his guardian under legal supervision as they perform their responsibilities. The beneficiary may be trying to overcome the losses from a guardian does not have the attention appropriate standard.

      In Canada, the pension funds are managed at the local level, however, the Ontario Retirement Association management standards like ERISA arguable. In the UK, the operation of the Freedom of Association and Myner Association in recent years has become standard policy to guide investment. European countries such as the Netherlands; Asian countries including Australia, Japan, and Singapore;, and other Latin American countries such as Brazil, Chile and Mexico, she is an example of the countries have a legal framework for retirement benefits of employees and savings plans.

      Historically, in some developed markets, structured pension plan does not include having to deal with the investment policy issues. For example, France has a plan run by the government requires donors to plan contributions. But outside the country in which the plan which are not used, it is important for businesses to understand and apply the rules of the government agency in charge of developing the investment policy.

      2.1.7. The special case Although the special cases can hardly be generalized description, a trait that the retirement plans of small companies face issues related to human resources and sources finance available to plan sponsors. In particular, investment in alternative investments (such as unlisted shares, venture capital funds or mineral resources) often requires special review of complexity. (Reviewing especially related to the investigation and analysis to support an activity or investment recommendations; failing special review activities, in some cases leading to legal liability, depending on the system different legal systems.

      Another special case of a plan can be subjective when not to invest in some specific industries that are the matter of ethics or welfare; or invest in shares of companies operating in the country against the regime with a number of ethical issues were raised. Investment considerations on moral meaning play an important role in the investment policy of the state retirement plans as well as a number of private pension plans or unions. Australia and some European policies require pension funds to disclose information whether these funds put ethical standards into investment decision-making process or not. In the UK there are regulations (introduced in 1999) increasingly affect the measures of activities socially responsible investment of the pension plan.

      Purpose: The purpose of the investment policy ("Policy") is to provide clear guidelines for the management of plan assets. This policy should establish policies and guidelines for the operation of the Plan's investment. Commissions have approved investment policy and apply this on 21/04/2002. The policy outlines the goals, objectives, limits and responsibilities to:

      • Investment Committee, staff, investment managers and managers understand the objectives and policies of the Plan.

      • The investment managers provide guidance and authority relating to the investment of the Plan's assets

      • The Investment Committee is responsible for significant investment in evaluating the effectiveness of individual investment managers as well as assess the level of achievement of investment objectives.

      Management plans should always be based on all the laws and regulations of state and government, including / not limited by the Retirement Income Security Act of laborers of 1974 (ERISA).

      Regulations on the duties and responsibilities of investment. Commission-based investment company employees as well as external service providers (including the head of investment banking and guardian) in performing their duties. Guardian role of each organization must be clearly defined to ensure clarity in communication, performance and level of responsibility in all aspects of operations.

      Investment Committee. Investment Committee is responsible for the investment management process. With the help of the staff, the investment committee monitoring the effectiveness of investment; ensure funds are invested in accordance with Company policy; research, propose and implement policies and operating procedures will enhance the operation of the Plan's investment.

      Chief Investment Officer. The Chief Investment Officer will build and manage the portfolio in accordance with the philosophy and principles of investment. They traded securities and asset restructuring within the guidelines set out. Investment Committee believes that investment decisions are best made when not constrained by the limits too wide. Therefore, the investment manager delegates full authority to comply with the investment policy limits were clear instructions. However, investments managers must respect and follow the limited instructions, specific attitudes and philosophies have been raised in any of the investment guidelines in effect or any additional material no. The investment managers are expected information, in writing, any change could affect the list of plans for Investment Committee within five working days after the incident. Examples of such events include, but are not limited to, the following changes:

      • A significant change in investment philosophy.

      • A change in the ownership structure of the business.

      • The loss of one or a number of key management personnel.

      • Any incident that may affect leadership, professionalism, integrity, or financial condition of the business.

      Bank guardian. Guardian Bank holds all cash and securities (except those held in mixed funds and mutual funds) and will often synthesize these assets held for investment committee approval. Moreover, the bank guarantee in a bank or trust will be used to accept and hold cash before allocated to investment managers and to invest this money in financial instruments interest and high liquidity.

      Investment goals and objectives. General investment objective of the Plan is to create resources to pay benefits to members beneficiaries of the Plan through an investment program planned and implemented carefully.

      Profit target

      The overall profit of the plan is to be an amount sufficient to generate an appropriate amount of capital additional elements inflation. The appropriate amount of capital gain if the market value of the assets at least equal to the financial responsibility expected of the Plan as defined in СКАЧАТЬ