The macroeconomics of sovereign wealth funds

The dramatic growth in sovereign wealth funds (SWFs) has implications which are still emerging for national economies and globally. This paper considers why SWFs have become key international financial institutions for some countries, particularly developing ones. This adds to the literature on second best development strategies (Hausmann and Rodrik 2003), here applying it to SWFs. A macroeconomic approach is taken towards the phenomenon of reserves accumulation and motives for SWFs. These are evaluated in terms of the pattern of balance of payments and inferred trade and exchange policies. The role of SWFs in promoting country growth and international stability is considered in view of the global financial crisis (GFC).

Improving our superannuation regime : a post-Henry review look at superannuation taxation, raising superannuation balances and longevity insurance

This paper examines what, if any changes should be made regarding certain aspects of the superannuation system. Specifically, it looks at possible changes to the superannuation tax regime, measures intended at increasing superannuation balances, as well as policies aimed at improving the price and availability of retirement income streams. The recommendations of the final report of the Henry Review on these issues are also critically evaluated. The paper finds that a greater targeting of superannuation tax concessions towards middle and lower income earners would make the system more equitable and achieve other desirable goals such as increasing voluntary savings. Furthermore, the available evidence suggests that the current mandatory contributions rate of 9% is adequate, and a higher contributions rate is likely to have more costs than benefits. On the issue of superannuation income streams, the article finds that whilst taxpayers should continue to be allowed to take their superannuation as a lump sum, policies should be implemented to make lifetime annuities more readily available and better value for money. The Henry Review's recommendations on these issues, with some exceptions, are for the most part sound and based on logic.

Australia's superannuation system : a critical analysis

Australia’s superannuation system consists of individual retirement accounts that cannot be accessed until the taxpayer reaches the legislated preservation age. Most of the deposits to these accounts are the mandatory contributions that employers make. Some of the claimed justifications for superannuation are weak. Specifically, claims that superannuation is necessary to prevent a looming ageing crisis and is justified on the grounds of intergenerational equity lose much of their force when examined in the context of substantially higher future incomes. One of the justifications for superannuation that has merit is that it helps promote income smoothing. Although there are some strong arguments for retirement policies that help promote income smoothing, given the long term trend towards income inequality, there are also convincing arguments towards an emphasis on retirement policies that distribute incomes more equally. If income smoothing is on balance seen as a desirable goal then there is merit in Australia’s superannuation system being complemented by a fully funded government run defined benefits scheme.

The Australian superannuation framework : implications for retirement savings

The provision of retirement income has become a challenge for governments across the world. The population is ageing as a result of lower mortality and fertility rates: this places financial stress on government budgets as welfare spending increases, further compounded by a proportional reduction in working-age taxpayers. The Australian government has introduced a compulsory superannuation charge on employers to assist retirement savings. Even though savings in superannuation have increased significantly over the years, many will still have insufficient savings to fund their retirement. Recent changes to the superannuation framework have emphasised the importance the government places on supporting future generations of Australians in retirement.

An investigation on asset allocation and performance measurement for unit trust funds in Malaysia using multifactor model : a post crisis period analysis

This study examines the pattern of asset allocation and the performance of unit trust in Malaysia over the post crisis period by using risk-adjusted performance measures and multi-factor model from the year 2000 to 2004. Evidence from the statistics suggests that an active asset allocation strategy had been observed among Malaysian fund managers during the post Asian financial crisis. It is also suggested that investment allocation in equity remained a dominant vehicle for investment and asset allocation. Findings from multifactor model suggest that all funds of different objectives registered positive alphas except for income funds, with growth funds being among the top. While balanced funds registered highest diversification effectively, diversifying away about 70%-80% of unsystematic risk, the momentum factor is not among the important elements to explain unit trust performance in Malaysia.

The role of financial education in retirement planning

Governments in many countries are facing the challenge of providing sufficient retirement incomes for a population that is ageing as a result of lower mortality and fertility rates. An ageing population places considerable financial stress on government budgets as spending on welfare increases, further compounded by a proportional reduction in working-age taxpayers. Exposure to financial education programs can positively influence the retirement planning and savings behaviour of individuals. Research indicates that seminars, written communications and website information are effective methods in communicating financial education. In this study an investigation is conducted into the views of retirement fund members regarding elements of financial education resources made available to them through their retirement fund. Four aspects are investigated, that is, whether there are differences with respect to members’ views between the genders, older and younger members, levels of qualification, and size of superannuation balances. Empirical evidence suggests that gender and age are important factors with females and younger people less likely to utilise educational information and more at risk of not accumulating sufficient funds for retirement.

Young children learning about well-being and environmental education in the early years: a funds of knowledge approach

Early childhood educators currently provide content focused learning opportunities for children in the areas of well-being and environmental education. However, these are usually seen as discrete content areas and educators are challenged with responding to children’s interests in popular-culture inspired food products given these influence their consumption of energy-dense, nutrient-poor and highly packaged food in the early childhood setting. This paper reports preliminary findings from a pilot randomised trial examining the interconnectedness of sustainability, well-being and popular-culture in early childhood education. Planning, assessment documentation and summaries from twenty-four learning experiences implemented by six educators over a six-week period were analysed using a deductive approach. Twenty well-being and environmental education topics were identified and shown to be generated by the educators when considering the children’s ‘funds of knowledge’ on popular-culture inspired food products. We argue that topics derived from children’s engagement with popular-culture may help educators to create an integrated approach to curriculum provision. This may impact child weight and facilitate obesity prevention and environmental sustainability as children create stronger connections between these content areas and their everyday choices and practices.

Intensity and authenticity: the duty to give real and genuine consideration in the context of superannuation trusts

 This article critically examines the suitability of the duty of a trustee to give real and genuine consideration when exercising discretionary powers in superannuation or pension trusts. The article reviews the rearticulation by the Australian High Court in Finch v Telstra of a ‘more intense’ real and consideration duty for superannuation trustees. It argues that this revised duty should be regarded as a temporary solution because longer term, the unique legal structure and social context of the superannuation trust demands judicial implementation of a substantively new, multilayered obligation that promotes reasonable, fair, and informed decision-making.

Islamic or conventional mutual funds: who has the upper hand? Evidence from Malaysia

Contradictory results are documented in the literature regarding which type of mutual fund has superior performance; an Islamic or conventional mutual fund. Due to the relative short history of the Islamic mutual funds' industry, prior literature has inevitably relied on a small sample size with a short sample period. With the longest applicable sample period, this study represents one of the most recent attempts to address this conflicting evidence. We find there is no clear cut over performance by Islamic mutual funds against their conventional peers across the three financial crises in our sample period, with the exception of the most recent global financial crisis, where Islamic mutual funds generally outperformed their conventional counterparts. We further find that Islamic funds significantly outperformed conventional funds in the riskiest asset class, equity, one year before and during the global financial crisis. We further reveal that the modified value at risk for Islamic mutual funds was significantly lower than their conventional peers during the global financial crisis. This seems to indicate that Islamic mutual funds have better risk management compared to conventional peers.

101 ways to save money on your tax legally! : updated for 2015-2016

101 Ways to Save Money on Your Tax–Legally! 2015–2016 sheds light on how you can increase your tax return by maximising your deductions. This practical guide explores how individual, family, property, education, employment, small business, investment property, shares, superannuation, medical expenses, levies, and other deductions can be leveraged to ensure that you receive the tax return you deserve—and that you do not overpay the government. You'll also get advice regarding tax-effective investments, tax planning, and the best way to go about finding a great accountant.Every year, you give a portion of your income to the government. While this money funds essentials like infrastructure, you certainly do not want to give more than you need to. This insightful guide provides you with the information necessary to ensure that you receive as much money back as possible on your tax return.Discover how you can maximise your deductions to increase your tax return—and get what you are entitled to back from the government each yearUnderstand the tax law changes from the May 2015 budgetAccess tips that assist you in planning and filing your taxes with your best interests in mindIdentify tax traps, and get answers to frequently asked questions101 Ways to Save Money on Your Tax–Legally! 2015–2016 is an essential resource for every Australian who pays taxes.