A recent behavioral finance webinar from Unified Trust delivered by Dr. Gregory Kasten. Link to the replay can be found below.
http://bit.ly/BehavioralFinanceWebinar
Shareholders Are Dissatisfied with CEO Compensation and Disclosure--Proxies Are Too Long, Difficult to Read.
Only 38 percent of institutional investors believe that corporate disclosure about executive compensation is clear and easy to understand. “Shareholders want to know that the size, structure, and performance targets used in executive compensation contracts are appropriate,” says Professor David F. Larcker of the Stanford Graduate School of Business. “Our research shows that, across the board, they are dissatisfied with the quality and clarity of the information they receive about compensation in the corporate proxy. Even the largest, most sophisticated investors are unhappy.”
“With new pressure from activist investors and annual ‘Say on Pay’ (SOP) votes, it is more important than ever that companies explain to their shareholder base why the compensation packages they offer are appropriate in size and structure,” says Aaron Boyd, director of Governance Research at Equilar. “Investors are noticing the wide range in quality and clarity among various companies’ proxies. They want companies to communicate and explain, rather than simply disclose,” adds Ron Schneider, director of Corporate Governance Services at RR Donnelley Financial Services. “This represents a significant opportunity for many companies to improve the clarity of their proxies.”
In the fall of 2014, RR Donnelley, Equilar, and the Rock Center for Corporate Governance at Stanford University surveyed 64 asset managers and owners with a combined $17 trillion in assets to understand how institutional investors use the information in corporate proxies.
The Outsourced Chief Investment Officer Model: One Size Does Not Fit AllCallan
As investors reach for returns in a sometimes bruising market, they are adding private equity, hedge funds,
and other alternatives, leading to increasingly sophisticated—and complicated—portfolio monitoring and
management. Heightened regulatory and compliance requirements have further increased the time and
resources required to meet fiduciary responsibilities. This has led some investors to consider delegating
investment oversight, monitoring, and management duties.
The industry press regularly reports on a large and rapidly growing outsourced chief investment officer
(OCIO) market, and some fund sponsors wonder if this model would serve them better than the traditional consulting model. Funds managed through an OCIO are beholden to the same challenging market environment and regulatory atmosphere, but the burden of balancing these challenges can be largely shifted from the investment committee to the OCIO provider. Some funds find this solution meets their needs.
In the outsourced chief investment officer (OCIO) model (also known as “implemented consulting,”
“discretionary consulting,” or “delegated consulting”), an institution shifts discretionary authority to an
advisory firm to manage some or all of the investment functions typically performed by the investment committee. The precise definition of this model varies as much as the name, making the size and scope of the marketplace difficult to pin down.
The increasing popularity of this model is in part a response to the frustration investment committees
have felt amid a shifting environment in which portfolio management requires more resources. While an OCIO offers an elegant solution, it is not a panacea for all the issues facing institutional investors, and relinquishing all fiduciary oversight is not an option.
In this paper we describe the OCIO market and Callan’s approach, which acknowledges that each investor faces unique challenges that require custom solutions. We offer two case studies and a series of questions that might assist fund sponsors in weighing the appropriateness of the OCIO model for their fund.
According to results of Callan Associates’ 2013 Risk Management Survey, more than half of fund sponsors (55%) say their risk management tools are effective at mitigating investment risk, but 14% see them as simply a means to improve risk identification and monitoring. One-third of respondents indicated they do not know yet the effectiveness of their risk management tools because they are new and untested in a true market crisis.
The survey found formal risk management processes are most prevalent at large funds. Half of the medium and small funds have adopted a risk management process or are doing so in 2013. Forty-two percent of respondents employ proprietary and/or third-party risk measurement tools, such as software or data services. Usage of third-party tools is most prevalent at public funds, while endowments and foundations more often use in-house (proprietary) tools.
Corporate and public funds are embracing policy-level approaches to risk management more so than endowments and foundations. Public funds have implemented economic regime asset allocations, risk parity, and risk factor-based asset allocations, while corporate funds favor liability-driven investing and funded status-based glide path de-risking.
Strategy-level approaches to mitigate risk are easier to implement than those that alter the fund’s overall investment policy, and Callan observed higher levels of adoption of strategy changes across fund types. Public funds and foundations and endowments are most heavily implementing or considering real assets, opportunistic fixed income, absolute return and long/short equity. Corporate funds are also embracing absolute return, but long duration is the most favored strategy-level approach used to address risk.
Many fund sponsors wrestle with whether or not to tactically manage plan risk. Only 30% of sponsors have made rebalancing decisions based on risk management findings. Of those that have not done so, 82% do not plan to in the future.Public (31%) and large (25%) funds are the most likely to use tactical implementations going forward.
According to the survey, most funds (94%) do not have a formal risk budget, but explicitly address risk management in their plan governance via asset allocation, investment objectives and disciplined rebalancing.
The investment committee is the body most regularly tasked with deciding when to take action based on the findings of risk management tools. The most common actions taken were asset allocation changes (64% of respondents), manager due diligence/search (56%) and increased manager monitoring (52%). Twenty percent of respondents had not yet taken any actions based on risk management findings.
The survey was conducted in November 2012 and includes responses from 53 fund sponsors representing $576 billion in assets.
Matthew Gaude • FSC Securities
- Gaining the peer-to-peer advantage: The 2015 NAAIM annual conference highlighted the importance of collaboration by Linda Ferentchak
- Debate over valuations heats up
- Fundamentalists vs. technical analysts by Martha Stokes, CMT
- Marketing the unrealized potential of 403(b) plans (Ryan Finnell, Retirement Tax Advisory Group)
The results suggest that there is a real opportunity to improve the investment process so nonprofits can better protect the capital they’ve worked so hard to raise. I hope you find the results as interesting as I did. Please feel free to reach out to me directly if you have questions.
Can Traditional Active Management Be Saved?Clare Levy
Active managers need to start incorporating the lessons of behavioural science if they have a chance of reversing the flow of assets into passive investment vehicles. Eric Rovick highlights some of the areas of cognitive risk evident in active investment management and provides a managerial and operational framework for addressing them.
Shareholders Are Dissatisfied with CEO Compensation and Disclosure--Proxies Are Too Long, Difficult to Read.
Only 38 percent of institutional investors believe that corporate disclosure about executive compensation is clear and easy to understand. “Shareholders want to know that the size, structure, and performance targets used in executive compensation contracts are appropriate,” says Professor David F. Larcker of the Stanford Graduate School of Business. “Our research shows that, across the board, they are dissatisfied with the quality and clarity of the information they receive about compensation in the corporate proxy. Even the largest, most sophisticated investors are unhappy.”
“With new pressure from activist investors and annual ‘Say on Pay’ (SOP) votes, it is more important than ever that companies explain to their shareholder base why the compensation packages they offer are appropriate in size and structure,” says Aaron Boyd, director of Governance Research at Equilar. “Investors are noticing the wide range in quality and clarity among various companies’ proxies. They want companies to communicate and explain, rather than simply disclose,” adds Ron Schneider, director of Corporate Governance Services at RR Donnelley Financial Services. “This represents a significant opportunity for many companies to improve the clarity of their proxies.”
In the fall of 2014, RR Donnelley, Equilar, and the Rock Center for Corporate Governance at Stanford University surveyed 64 asset managers and owners with a combined $17 trillion in assets to understand how institutional investors use the information in corporate proxies.
The Outsourced Chief Investment Officer Model: One Size Does Not Fit AllCallan
As investors reach for returns in a sometimes bruising market, they are adding private equity, hedge funds,
and other alternatives, leading to increasingly sophisticated—and complicated—portfolio monitoring and
management. Heightened regulatory and compliance requirements have further increased the time and
resources required to meet fiduciary responsibilities. This has led some investors to consider delegating
investment oversight, monitoring, and management duties.
The industry press regularly reports on a large and rapidly growing outsourced chief investment officer
(OCIO) market, and some fund sponsors wonder if this model would serve them better than the traditional consulting model. Funds managed through an OCIO are beholden to the same challenging market environment and regulatory atmosphere, but the burden of balancing these challenges can be largely shifted from the investment committee to the OCIO provider. Some funds find this solution meets their needs.
In the outsourced chief investment officer (OCIO) model (also known as “implemented consulting,”
“discretionary consulting,” or “delegated consulting”), an institution shifts discretionary authority to an
advisory firm to manage some or all of the investment functions typically performed by the investment committee. The precise definition of this model varies as much as the name, making the size and scope of the marketplace difficult to pin down.
The increasing popularity of this model is in part a response to the frustration investment committees
have felt amid a shifting environment in which portfolio management requires more resources. While an OCIO offers an elegant solution, it is not a panacea for all the issues facing institutional investors, and relinquishing all fiduciary oversight is not an option.
In this paper we describe the OCIO market and Callan’s approach, which acknowledges that each investor faces unique challenges that require custom solutions. We offer two case studies and a series of questions that might assist fund sponsors in weighing the appropriateness of the OCIO model for their fund.
According to results of Callan Associates’ 2013 Risk Management Survey, more than half of fund sponsors (55%) say their risk management tools are effective at mitigating investment risk, but 14% see them as simply a means to improve risk identification and monitoring. One-third of respondents indicated they do not know yet the effectiveness of their risk management tools because they are new and untested in a true market crisis.
The survey found formal risk management processes are most prevalent at large funds. Half of the medium and small funds have adopted a risk management process or are doing so in 2013. Forty-two percent of respondents employ proprietary and/or third-party risk measurement tools, such as software or data services. Usage of third-party tools is most prevalent at public funds, while endowments and foundations more often use in-house (proprietary) tools.
Corporate and public funds are embracing policy-level approaches to risk management more so than endowments and foundations. Public funds have implemented economic regime asset allocations, risk parity, and risk factor-based asset allocations, while corporate funds favor liability-driven investing and funded status-based glide path de-risking.
Strategy-level approaches to mitigate risk are easier to implement than those that alter the fund’s overall investment policy, and Callan observed higher levels of adoption of strategy changes across fund types. Public funds and foundations and endowments are most heavily implementing or considering real assets, opportunistic fixed income, absolute return and long/short equity. Corporate funds are also embracing absolute return, but long duration is the most favored strategy-level approach used to address risk.
Many fund sponsors wrestle with whether or not to tactically manage plan risk. Only 30% of sponsors have made rebalancing decisions based on risk management findings. Of those that have not done so, 82% do not plan to in the future.Public (31%) and large (25%) funds are the most likely to use tactical implementations going forward.
According to the survey, most funds (94%) do not have a formal risk budget, but explicitly address risk management in their plan governance via asset allocation, investment objectives and disciplined rebalancing.
The investment committee is the body most regularly tasked with deciding when to take action based on the findings of risk management tools. The most common actions taken were asset allocation changes (64% of respondents), manager due diligence/search (56%) and increased manager monitoring (52%). Twenty percent of respondents had not yet taken any actions based on risk management findings.
The survey was conducted in November 2012 and includes responses from 53 fund sponsors representing $576 billion in assets.
Matthew Gaude • FSC Securities
- Gaining the peer-to-peer advantage: The 2015 NAAIM annual conference highlighted the importance of collaboration by Linda Ferentchak
- Debate over valuations heats up
- Fundamentalists vs. technical analysts by Martha Stokes, CMT
- Marketing the unrealized potential of 403(b) plans (Ryan Finnell, Retirement Tax Advisory Group)
The results suggest that there is a real opportunity to improve the investment process so nonprofits can better protect the capital they’ve worked so hard to raise. I hope you find the results as interesting as I did. Please feel free to reach out to me directly if you have questions.
Can Traditional Active Management Be Saved?Clare Levy
Active managers need to start incorporating the lessons of behavioural science if they have a chance of reversing the flow of assets into passive investment vehicles. Eric Rovick highlights some of the areas of cognitive risk evident in active investment management and provides a managerial and operational framework for addressing them.
John McGonagle • EPI Advisors, LLC
- Understanding the relevance of risk-adjusted returns by Dave Walton
- Strongest jobs gain since 2012 surprises markets
- Building stronger visibility for an advisory firm (Rodger Sprouse, Titan Securities)
Opportunities for Optimism? A New Vision for Value in Asset ManagementState Street
Asset managers are playing for high stakes. A rising market creates opportunities on multiple fronts, but the industry's optimism may be tested by new risks, changing client demands and non-traditional competitors. Our research identifies four emerging "value drivers" that may shape the industry's future success.
Choice: Good or Bad? by Michele Ongley and Tracy Jensen10X Investments
10X Investments' Chief Product Architect, Tracy Jensen, and Head of Institutional Business Development, Michele Ongley, presented at the Batseta Seminar (formerly known as POA) in Johannesburg (9 April) and Cape Town (10 April) on the topic of Choice: Good or Bad?
The topic covered key investment factors, including:
- what is the purpose of choice in retirement funds;
- what do we know about human behaviour in response to choice;
- and what is the direct and indirect cost of choice and when does choice add value?
What Every Nonprofit Finance Committee Should Know About Operating ReservesJGLogan
What Every Nonprofit Finance Committee Should Know About Operating Reserves - What are operating reserves, why are they important, how do you get them.
Around the world, many investors are turning to alternative assets to increase yield in the current low―or even negative―interest-rate environment. The Economist Intelligence Unit (EIU), sponsored by Northern Trust, sought to ascertain the importance of various factors to investors’ and investment managers’ alternative investment decision making. In February 2017, the EIU surveyed 200 senior asset management and institutional investor executives employed by several different types of organisations—ranging from private equity firms and hedge funds to corporations, non-profits and insurance companies.
“Impact of Behavioral Biases on Investors Decision Making: Male Vs Female”IOSR Journals
This study aims to investigate the influence of behavioral biases on investment decisions made by students and employees. This objective was achieved by administering a questionnaire and collecting empirical data from graduate & post graduate students and employees about their own perceptions of biases. Questionnaire was distributed among the sample of hundred students/employees from which 45% were students and 55% were employees. Two statistical techniques were used to analyze collected data. Correlation was used to analyze the relationship of overconfidence bias with illusion of control bias, familiarity bias, loss aversion bias and confirmation bias. Chi-square was used to determine the significant difference between the responses of male and female about overconfidence bias. Results of this study reports weak negative correlation between overconfidence bias and other behavioral bias discussed in the study. This study concludes there is no significant difference between the responses of male and female decision making regarding overconfidence bias.
Did you know that 45,000 businesses in the United States fail each month? And that 44 percent of small businesses used credit cards as a source of financing in 2008, compared to 16 percent in 1993, according to the Small Business Administration? Learn how to take a proactive approach to managing your debt and creating cash flow with out borrowing money. Join the National Restaurant Association, Nation's Restaurant News and SettleSource, Inc. for this free one-hour event. Learn more at http://bit.ly/dqfzkI .
This report touches upon themes such as increasing complex reporting requirements, growing demand for transparency, the adoption of big data technology solutions, the management of environmental, social and governance (ESG) factors in private equity portfolio companies as well as the growing popularity of various private equity fund structures, and how this is set to change over the next 12 to 24 months.
Institutional investors are always looking for better ways to increase returns, reduce risk and achieve specific investment goals. Particularly in the wake of the financial crisis, investors have been seeking more robust ways to diversify and reduce risk.
Numis Growth Capital Survey (1Q20) - ContagionDavid Kelnar
To give clarity amidst volatility, over the last 72 hours we surveyed 18 of the world’s leading growth investors – including Andreessen Horowitz, Greylock and Sequoia.
Our survey reveals economic pessimism, sustained investment appetite, diverging valuation dynamics and new
strategic success factors for scale-ups.
What's New with Corporate Retirement Plans? More Than You ThinkSkoda Minotti
This presentation discusses the rapidly changing (and litigious) landscape of corporate retirement plans and the best practices top companies are implementing to maintain a quality benefit offering, reduce risk exposures, and retain top talent.
John McGonagle • EPI Advisors, LLC
- Understanding the relevance of risk-adjusted returns by Dave Walton
- Strongest jobs gain since 2012 surprises markets
- Building stronger visibility for an advisory firm (Rodger Sprouse, Titan Securities)
Opportunities for Optimism? A New Vision for Value in Asset ManagementState Street
Asset managers are playing for high stakes. A rising market creates opportunities on multiple fronts, but the industry's optimism may be tested by new risks, changing client demands and non-traditional competitors. Our research identifies four emerging "value drivers" that may shape the industry's future success.
Choice: Good or Bad? by Michele Ongley and Tracy Jensen10X Investments
10X Investments' Chief Product Architect, Tracy Jensen, and Head of Institutional Business Development, Michele Ongley, presented at the Batseta Seminar (formerly known as POA) in Johannesburg (9 April) and Cape Town (10 April) on the topic of Choice: Good or Bad?
The topic covered key investment factors, including:
- what is the purpose of choice in retirement funds;
- what do we know about human behaviour in response to choice;
- and what is the direct and indirect cost of choice and when does choice add value?
What Every Nonprofit Finance Committee Should Know About Operating ReservesJGLogan
What Every Nonprofit Finance Committee Should Know About Operating Reserves - What are operating reserves, why are they important, how do you get them.
Around the world, many investors are turning to alternative assets to increase yield in the current low―or even negative―interest-rate environment. The Economist Intelligence Unit (EIU), sponsored by Northern Trust, sought to ascertain the importance of various factors to investors’ and investment managers’ alternative investment decision making. In February 2017, the EIU surveyed 200 senior asset management and institutional investor executives employed by several different types of organisations—ranging from private equity firms and hedge funds to corporations, non-profits and insurance companies.
“Impact of Behavioral Biases on Investors Decision Making: Male Vs Female”IOSR Journals
This study aims to investigate the influence of behavioral biases on investment decisions made by students and employees. This objective was achieved by administering a questionnaire and collecting empirical data from graduate & post graduate students and employees about their own perceptions of biases. Questionnaire was distributed among the sample of hundred students/employees from which 45% were students and 55% were employees. Two statistical techniques were used to analyze collected data. Correlation was used to analyze the relationship of overconfidence bias with illusion of control bias, familiarity bias, loss aversion bias and confirmation bias. Chi-square was used to determine the significant difference between the responses of male and female about overconfidence bias. Results of this study reports weak negative correlation between overconfidence bias and other behavioral bias discussed in the study. This study concludes there is no significant difference between the responses of male and female decision making regarding overconfidence bias.
Did you know that 45,000 businesses in the United States fail each month? And that 44 percent of small businesses used credit cards as a source of financing in 2008, compared to 16 percent in 1993, according to the Small Business Administration? Learn how to take a proactive approach to managing your debt and creating cash flow with out borrowing money. Join the National Restaurant Association, Nation's Restaurant News and SettleSource, Inc. for this free one-hour event. Learn more at http://bit.ly/dqfzkI .
This report touches upon themes such as increasing complex reporting requirements, growing demand for transparency, the adoption of big data technology solutions, the management of environmental, social and governance (ESG) factors in private equity portfolio companies as well as the growing popularity of various private equity fund structures, and how this is set to change over the next 12 to 24 months.
Institutional investors are always looking for better ways to increase returns, reduce risk and achieve specific investment goals. Particularly in the wake of the financial crisis, investors have been seeking more robust ways to diversify and reduce risk.
Numis Growth Capital Survey (1Q20) - ContagionDavid Kelnar
To give clarity amidst volatility, over the last 72 hours we surveyed 18 of the world’s leading growth investors – including Andreessen Horowitz, Greylock and Sequoia.
Our survey reveals economic pessimism, sustained investment appetite, diverging valuation dynamics and new
strategic success factors for scale-ups.
What's New with Corporate Retirement Plans? More Than You ThinkSkoda Minotti
This presentation discusses the rapidly changing (and litigious) landscape of corporate retirement plans and the best practices top companies are implementing to maintain a quality benefit offering, reduce risk exposures, and retain top talent.
Steve Redelsperger • Cadaret, Grant & Co., Inc.
- Risky business: How to create a better investor behavioral profile by Kellye Whitney
- October lives up to volatility reputation
- Creating tax-advantaged financial strategies (Gary Strawn, Transamerica Financial Advisors, Inc.)
Capital biasReducing human error in capital decision-makingTawnaDelatorrejs
Capital bias
Reducing human error in capital decision-making
A report by the
Center for Integrated Research
Deloitte’s Capital Efficiency practice helps organizations make better and faster decisions by
assisting them in improving the quality of their capital allocation decisions to enhance robustness,
efficiency, and return on investment.
Capital bias
The balancing act | 2
Choreographing the optimism bias, expert bias,
and narrow framing | 3
Mitigating biases in planning: The US Navy | 7
Prioritization: Leveling the playing field | 9
Stripping away your own organization’s biases | 11
Endnotes | 12
CONTENTS
Reducing human error in capital decision-making
1
A look at the S&P 500 suggests just how dif-ficult it can be to consistently drive positive results. Take one measure, return on in-
vested capital (ROIC). In a Deloitte study, neither
the amount of capital expenditures (as a percentage
of revenue) nor the growth in capital expenditure
demonstrated any kind of meaningful correlation
with ROIC.1 Regardless of industry, individual com-
panies can often have a difficult time maintaining
high and steady returns on their investments year
over year.
Given such uncertainty in capital allocation re-
sults, it may not be surprising that more than 60
percent of finance executives say they are not con-
fident in their organization’s ability to optimally al-
locate capital.2 After all, many companies are bal-
ancing competing priorities, diverse stakeholder
interests, and a complex variety of proposals that
can make capital allocation decisions even more dif-
ficult to execute in practice.
Why is this? On paper it seems practical enough
for everyone throughout the organization to be on
the same page. In an ideal world, a company estab-
lishes the goals and priorities; then, from senior
managers to frontline employees, everyone is ex-
pected to act in a manner that supports these man-
dates.
However, behavioral science, and possibly your
own experience, suggest it’s likely not always that
simple. Individuals at any level of an organization
may be overly optimistic about certain courses of
action, rely too much on specific pieces of informa-
tion (and people), or simply interpret the objective
through too narrow a lens (that may even run coun-
ter to other views on how to achieve these goals).
Within the behavioral science field, these are
referred to as cognitive biases and they exist in
many endeavors, not just capital planning. These
same biases can explain why we are too optimistic
about our retirement portfolios, can rely solely on
the opinions of experts in matters of health, and
narrowly frame our car buying decisions based on
a single attribute, such as fuel efficiency—ignoring
safety features, price, and aesthetic design. In the
language of the behavioral sciences, these translate
into the optimism bias, expert bias, and narrow
framing, respectively.
Though these biases, an ...
Webinar on Hidden Fees in 401k plans. How they impact plan holders and the potential liability that business owners and fiduciaries are now exposed to.
Retirement planning is a constantly changing subject. John Friar, AIF, of HJB Financial walks employers through the new landscape of retirement planning.
4 active vs passive advisor insert funds flows dfa (advisor present) p. 1-3, ...Weydert Wealth Management
This excellent article contains three key graphics illustrating how average investors flow into and out of investments at the wrong times and contrasts this with the average DFA investor who remains much more consistent and disciplined.
Jay Blanchard • NEXT Financial Group, Inc.
- Tackling the herd through sentiment indicators by Linda Ferentchak
- Conflicting data adds to market uncertainty
- Social Security strategies as prospect "hot buttons" (Richard D'Ambola, Questar Capital Corporation)
In the complex and litigation-prone world defined contribution plans occupy, it is important to underline what the real focal points for fiduciaries should be. This paper is provided by T. Rowe Price.
1 ERISA § 404(a)(1)(A), 29 U.S.C. § 1104(a)(1)(A).
2 ERISA § 404(a)(1)(B), 29 U.S.C. § 1104(a)(1)(B).
3 ERISA § 404(a)(1)(D), 29 U.S.C. § 1104(a)(1)(D).
4 ERISA § 404(a)(1)(C), 29 U.S.C. § 1104(a)(1)(C)
This paper is sponsored by T. Rowe Price Associates, Inc. Contents of this paper are for informational purposes only and not for the purpose of providing legal advice. The analysis and conclusions are solely those of the author.
Defined contribution (DC) plan sponsors face increasingly complex issues. Russell Investments has developed a priority list of eight ideas and actions to help plan sponsors guide their participants toward better decision-making as they save for retirement.
Today’s increasingly complex investment and regulatory landscape places greater pressure on the plan sponsors and fiduciaries overseeing defined contribution plans. Fiduciaries are not only re-examining their current investment decision-making practices, they are also seeking to ensure that those practices allow for enough flexibility in implementation to maximize the likelihood of investment success, while protecting the plan sponsor from potential litigation.
Central to the idea of a well-managed program, a clearly articulated investment policy statement (IPS) serves as the foundation of sound governance and a robust oversight process
By 2025, many DC plan sponsors will likely adopt characteristics of the most successful pension plans to help put them on a path to create a fully funded retirement income stream for plan participants. Here are ten considerations
Ever ask: “How does our retirement plan compare to others?” Learn what Russell Investments believes all excellent DC plans share and actions you can take to help position your plan for excellence.
While many assume the greatest source of retirement plan liability is the plan’s investments, in reality, the vast
majority of lawsuits and regulatory actions involve failures in administration.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
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Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
2. 2
“Hello”
What we will cover: Behavioral finance research shows most 401(k)
participants are not active decision-makers. In fact, most participants are
dominated by five key behavioral traits: inertia, procrastination, choice
overload, endorsement and framing. Today I will explain these behaviors and
how appropriate strategies can be enacted to allow for participant success
despite these behaviors.
I am Gregory Kasten
Welcome!
3. 3
1. The Purpose of ERISA
2. Five Key Financial Behaviors
3. How They Hurt Participants
4. Successful Strategies
5. Improving Outcomes
6. Adding Value As An Adviser
Presentation Agenda
5. 5
Studebaker
“A catastrophe”
• For 27 years, Ray worked on the
truck line at the Studebaker auto
plant in South Bend, earning $2.60
an hour and a pension that
company officials promised he
could look forward to in his old age.
• “I loved my job,” said Ray, “I
thought I was set for life.”
“Pensions: the Broken Promise” NBC News aired
9/12/1972
6. 6
Studebaker
“A catastrophe”
• Then, in 1963, Ray showed up for
work and was told there was no
more job. No more Studebaker. And
no more pension.
• The funds that had been promised
to provide pensions for 4400 vested
Studebaker employees were gone.
“Pensions: the Broken Promise” NBC News aired
9/12/1972
7. 7
“It is hereby declared to be
policy…to protect the interests of
participants in employee benefit
plans and their beneficiaries…”
8. 8
Congress thought the trustee
would be discretionary!
ERISA’S VISION
“The House bill also provides that
all plans must be in writing, that
plan assets generally are to be
held in trust, and that trustees
generally are to have the
exclusive authority to manage
and control plan assets.”
13. 13
“Immune from judicial
inquiry!”
Directed Trustee
“As we have explained, a directed
trustee is essentially ‘immune
from judicial inquiry’ because it
lacks discretion, taking
instructions from the plan
fiduciary that it is required to
follow.”
Renfro v. Unisys Corp. 671 F. 3d 314 – Court of Appeals, 3rd
Circuit 2011
14. 14
Better for the Vendor
• Exempt from most fiduciary prohibited transactions
• Little fiduciary compliance cost
• Little risk (most risk remains with named plan fiduciary-plan sponsor)
• Requires employee to become an actuary and investment expert
But worse for the average employee
16. 16
Industry Solutions
• Automatic Enrollment
• Target Date Fund
• Email Campaigns
• Web Calculator
• Gap Report
• “Plan Health Reports”
Retirement industry offers simple but often ineffective solutions
17. Personalized Data
The industry has offered distinct
homepages and account-specific
dashboards, along with increased
dashboard or homepage retirement
readiness content and the integration
of more personalized communication
strategies.
21. 21
It can be harmful.
Overconfidence
Research has found that people tend to
have unwarranted confidence in their
decision making. In essence, this means
having an inflated view of one’s own
abilities.
This trait appears universal, affecting
most aspects of our lives. Researchers
have asked people to rate their own
abilities, for example in driving, relative
to others and found that most people rate
themselves in the top third of the
population.
Few people rate their own abilities as
below average, although obviously 50% of
all drivers are below average.
Barber and Odean (1999), ‘The courage of misguided convictions’
Financial Analysts Journal, November/December, p.47
22. 22
It can be harmful.
Overconfidence
Many studies–of company CEOs, doctors,
lawyers, and students–have also found
these individuals tend to overrate the
accuracy of their views of the future.
Most humans tend to view the world in
positive terms. They tend to ignore
mistakes.
While this behavior can be valuable – it
can help a person recover from life’s
disappointments more quickly – it can
also cause an ongoing source of bias in
money-related decisions.
23. 23
Overconfidence
Overconfident investors may overestimate their ability to identify
winning investments. They tend to trade more often.
Brad Barber and Terrence Odean (1999) ‘The courage of misguided convictions’ Financial Analysts Journal, November/December, p.
50.
Portfolio Turnover and Return
Mean monthly turnover Annual return
20% least active traders 0.2% 18.5%
20% most active traders 21.5% 11.4%
25. 25
Mental Accounting
• Investors pay less attention to the relationship between the investments held in the different
mental accounts than traditional theory suggests. This natural tendency to create mental
buckets also causes them to focus on the individual buckets rather than thinking broadly, in
terms of their holistic wealth position.
• Mental accounting creates “investment layers.” The base layers represent assets designed to
provide “protection from poverty”, which results in conservative investments designed to
avoid loss. Higher layers represent “hopes for riches” and are invested in risky assets in the
hope of high returns.
• The base layer usually consists of cash, bank accounts and conservative bonds.
• The risky upper layer consists of stocks and buying lottery tickets.
26. 26
Simultaneous risk adverse
and risk tolerate behavior
Mental
Accounting
This idea explains why an individual
investor can simultaneously display risk-
averse and risk-tolerant behavior,
depending on which mental account
they’re thinking about.
This model can help explain why
individuals can buy at the same time both
“insurance” such as short term bonds and
“lottery tickets” such as a handful of
small-cap stocks.
27. 27
Simultaneous risk adverse
and risk tolerate behavior
Mental
Accounting
The theory also suggests that investors
treat each layer in isolation and don’t
consider the relationship between the
layers.
They do not understand the correction of
various assets.
Established finance theory holds that the
relationship between the different assets
in the overall portfolio is one of the key
factors in achieving diversification.
31. 31
3. Choice Overload
The prospect of making the decision is so overwhelming that the individual
refuses to make it.
32. 32
4. Endorsement Effect
Substituting a perceived expert suggestion (their employer’s plan design) for
their own individual reasoning about their financial needs and risk
tolerance.
33. 33
5. Framing
How a concept is presented to
individuals matters in their
decision. Framing can allow most
participants to accept the help
they seek.
34. The Key to Improving
Outcomes Is Allowing
Participants to Keep
Their Behavior
36. 36
What are the fiduciary
aspects of the Robo Adviser?
“Robo Advice”?
• Where does data originate?
• How often is account tested for errors?
• Are FI360 CEFEX Best Practices in
place?
• Most robo advice systems have not
been tested in a bear market.
• This is a fiduciary act.
• “Digital Fiduciary”
37. 37
Usually Less Than 10% of Participants
Select a Managed Account
• “Cost, complexity cited for the lackluster use of
managed accounts”
• “There's a wide variability of usage depending
on whether a managed account is the QDIA”
• “However, among Vanguard plans offering
managed accounts, participant usage hovered
between 6% and 7%”
“Cost, complexity cited for the lackluster use of managed accounts”, Steyer,
Robert; Pensions & Investments; January 25, 2016
38. 38
In recent years behavioral
researchers have designed
autopilot systems to
counteract inertia.
Dealing With
Inertia
For example, it has been observed that
many individuals fail to join their
company’s 401(k) plan, possibly as a
result of inertia.
Changing the enrollment process so that
employees are automatically enrolled,
while retaining a right to opt out, tends to
boost participation rates considerably.
39. 39
In recent years behavioral
researchers have designed
autopilot systems to
counteract inertia.
Dealing with
Inertia
Likewise, automatically enrolling
employees at a rate of 6% versus 3%,
helps them save an amount more likely to
fund their retirement needs.
Automatic enrollment in annual
escalators of savings helps even more.
40. 40
Default the employee into the
correct solution.
Dealing With
Inertia
Most employees do not have a retirement
goal. Most do not know how to solve the
actuarial solution for the goal.
Defaulting employees into a goal, and
solving for the goal, selecting the portfolio
prior to the enrollment meeting ensures a
very high acceptance rate of advice.
This is a fiduciary act.
Ongoing quarterly monitoring.
48. Quantifying
Results
“When going through the specifics
of how the plan and the participants’
situations have improved over the
past 12 months, it is vital for
advisers to show plan sponsors how
they drove those changes.”
PlanAdvisor July/August 2015
49. 49
It Is Really Just
Four Questions
Be able to answer them.
1. Is the participant in the right answer?
2. Are they in the correct portfolio?
3. Are their fees reasonable in light of
services provided?
4. Have their outcomes improved?
50. 50
Your Four Responses
Retirement Success
Successful retirement outcome for
employees
Provide the Answers for the Twin Challenges
01
02
Manage Risk
Manage fiduciary risk for plan
sponsor and committees
53. 53
What’s In It For…
• The Participant: They have the answer! A retirement goal and a plan
that’s easy and doesn’t require them to change their behavior.
• The Plan Sponsor: They have a plan that has improved employee
satisfaction and retention while at the same time reduced their fiduciary
risk.
• The Plan Advisor: You now have a scalable and deliverable service model
that drives quantifiable results.
The participant, the plan sponsor and the plan advisor
55. Thanks for Joining Us!
Gregory W. Kasten, MD, MBA, CFP®, CPC, AIFA®
2353 Alexandria Drive, Suite 100, Lexington, KY
(859) 296-4407, Ext. 202
Greg.Kasten@unifiedtrust.com
Contact:
56. 56
Disclosures
1. The UnifiedPlan reporting tool helps investors understand whether
they are on course to achieve a successful retirement. The
UnifiedPlan uses “asset liability” matching. The asset is the money
forecast to be accumulated and the liability is the amount of money
needed to pay for the retirement. For investors who are planning for
retirement, the tool estimates the amount of funds required to meet
their retirement spending goals and provides alternatives such as
delaying retirement or lowering retirement spending for those who
may not be able to save the required amount.
2. For investors who are already retired, the tool estimates the
confidence that their portfolio will be able to sustain their desired
spending throughout retirement. The tool uses a combination of
deterministic methods and Monte Carlo simulation that consider
factors that include saving and spending levels, long-term market
expectations associated with the risk profile selected, pre- and in-
retirement time horizons, and other sources of outside income.
3. The UnifiedPlan limitations relate to the large number of
assumptions used in the analysis. The accuracy of these assumptions
directly impacts the quality of the tool's assessment. Potential
problems may include, but are not limited to, the use of inaccurate
financial data by the investor, the selection of a risk tolerance by the
investor that does not represent how their portfolio is actually
invested, long term market expectations of risk, return, and inflation
that are not achieved in the modeled time frame, the inclusion future
income that is never received, and unforeseen life emergencies that
require decreased saving before retirement, force an earlier
retirement, or increase spending needs during retirement.
4. The UnifiedPlan is highly dependent upon assumptions of annual
income and annual savings. Any variances or changes in the figures
used should be reported immediately by the plan participant. Unified
Trust is not responsible for any discrepancies in the data, or output
from the UnifiedPlan tool.
5. All mutual fund and collective investment fund data was gathered
from publicly available sources of information such as Standard &
Poor’s, Morningstar, Zephyr or vendors’ own websites. We take
reasonable care in collecting the data, and believe the data are
accurate, but reserve the right to correct any errors. Individual
mutual fund or collective fund performance data throughout the
document are net of underlying fund expense ratios but gross of add-
on expenses such as Trustee fees, administration fees, or advisory
fees. The performance histories reported are simply dollar-weighted
historical returns for the proposed funds and do not reflect the
effects of rebalancing or fund replacements.
6. Any past performance information for the illustrated investment
selections is not indicative of future returns but is merely a snapshot
of historical performance. Past performance is not a guarantee of
future performance. The investments are not FDIC insured.
7. Differences will probably exist between prospective and your actual
results because events and circumstances frequently do not occur as
expected, and those differences may be material, especially when
making estimates over extended time periods. All figures are shown
in current (inflation adjusted) dollars. The estimated inflation rate
used in this analysis may vary over time.