Traditional Endowment Research Articles

Practical Applications of The Modern Endowment Story: A Ubiquitous US Equity Factor

In <ext-link><bold><italic>The Modern Endowment Story: A Ubiquitous US Equity Factor</italic></bold></ext-link>, from the November 2022 issue of <bold><italic>The Journal of Portfolio Management</italic></bold>, author <bold>Richard Ennis</bold> (retired chairman and cofounder of <bold>EnnisKnupp</bold>) concludes that the endowment model is broken and makes three recommendations for repairing it: 1) dramatically reduce costs, 2) reevaluate risk tolerance and consider reallocating assets to investment-grade bonds, and 3) consider diversifying into global stock markets to reduce exposure to the US stock market. The traditional endowment model of diversified investing is designed to fund a nonprofit institution’s expenses while protecting principal against depletion. However, the largest endowments generally underperform the market, except when alternative investments like hedge funds are producing extraordinary returns. Ennis finds that, in the years since the 2008 global financial crisis (GFC), the performance of large endowments has become almost exactly correlated with that of the US stock market, alternative investments have provided no diversification benefits, and portfolio management costs have been the main cause of endowment underperformance. Endowments have also increased their exposure to the US equity factor in recent years, even as overall endowment performance gets worse.

Research on Time Bank’s Mutual-support Old-aged Care Mode Based on Blockchain Technology

With the development trend of aging and low fertility in China, disability and dementia increase year by year in the elderly population. The demand of long-term life care service for the elderly with disability and dementia brings great challenges to the service supply and funds of the traditional endowment insurance model. However, with the application of blockchain technology, the Time Bank’s mutual-support old-aged care mode can better solve the above problems. First, the author uses SWOT analysis to comprehensively analyze the advantages, difficulties, opportunities and challenges of the Time Bank’s Mutual-support for the Aged mode in China, then the blockchain technology is applied to this mode, finally the corresponding optimization scheme and suggestions are put forward.

Development of Investment Life Insurance in Russia

Investment life insurance products appeared in the life insurance segment in the mid-70s of the last century and by the end of the decade, began to gain popularity in many countries (USA, Canada, Asia and Europe). Throughout its history of development, investment life insurance has experienced many ups and downs. Each financial crisis has had a negative impact on its development indicators. Despite this, interest in investment life insurance persists, as more and more potential policyholders want to use investments in various financial instruments in combination with insurance protection. At the same time, they agree to pay a higher insurance premium, being confident that they receive more for it than with traditional endowment life insurance. The article provides arguments in favor of the need for a legislative revision of restrictions on investment life insurance in order to increase its further attractiveness.

PENENTUAN HARGA KONTRAK ASURANSI JIWA DWIGUNA UNIT LINK MENGGUNAKAN METODE POINT TO POINT

Some people now prefer to invest their money because it is considered more profitable than following traditional life insurance. Life insurance that there is an element of investment and provide protection to the insured is endowment unit link life insurance. Endowment unit link life insurance is an insurance that combines traditional endowment insurance with modern unit link insurance. In this research, the formulation of single premium net life of endowment unit link life insurance using Point to Point method to find the value of premium to be paid by the insured to the insurance company. Data used in this research is stock closing price for case study at PT. Bank Central Asia Tbk and the 45 years old insured data obtained from Mortalita Indonesia Table 2011.&#x0D; Based on the research result, the single premium net endowment unit link life insurance of 10 years for a man aged 45 years with the initial stock price of Rp 15,500 and the number of shares of 100 shares is Rp 15,605,951.

Exploratory Survey on UUM Student’s Acceptance Towards the Founding of Waqf Institution For Education

There are several methods that can be utilized to enhance the productivity of endowment (waqf) assets. These assets can be rented out to interested parties or used for various economic activities such as agriculture and livestock farming. In cases where the above methods are deemed unsuitable, then the Nazir should try to find other alternatives to make the waqf land productive. Endowment (waqf) trustees should also explore other avenues to optimize the usage of endowment land under their care. The establishment of waqf institution in UUM should be develop as alternatives in order to prosper the human capital (students) in their education by using the cash waqf. Cash waqf is a trust fund established with money to support services for mankind’s benefits in the name of Allah. Generally cash waqf has tremendous potential for the development of the human capital because it is liquid assets compared to traditional endowment in the form of fixed assets such as land and buildings. On the other hand the traditional endowment can only be done by rich people. In contrast to the cash waqf which can be implemented by each individual even with a few amounts. However, the acceptance of cash waqf shall be placed under an institution called The Waqf Institutions. Hence the establishment of the institution of waqf in UUM shall be established so that they can help the needy students in financing their education in UUM. This research explores the factors that influence the acceptance of waqf institutions establishment in Universiti Utara Malaysia. Considering the importance of cash waqf in developing waqf institutions and enhances the social economic of ummah. The objective of this paper is to explore the acceptance towards waqf Institution establishment in UUM. The methodology of this research is a quantitative research towards 379 respondents among Muslim students in UUM. All the data are analysed using software of Statistical Package for Social Science (SPSS) by conducting statistical method namely, Independent Samples T-test, Analysis of Variance (ANOVA), Pearson Corellation and Multiple Linear Regression analysis to achieve the objectives of this research. A conceptual framework is built based on Theory Planned Behaviour (TPB) and Technology Acceptance Model (TAM).

Price Discrepancy Between Sellers and Buyers When Making Decisions for the Self and Others.

In daily life, people make decisions not only for themselves but also on behalf of others. There may be differences in terms of the endowment effect when making decisions in these two situations. In Study 1, this question was investigated with an existing dataset exploring the traditional endowment effect, in which 86 students (M age = 20.8 years, SD = 5.0) at Harvard University were asked to make a decision on selling or buying a coffee mug for themselves or for others as brokers. When making decisions for the self, the average price demanded by sellers was much higher than that offered by buyers; while making decisions for others, the price discrepancy disappeared. In Study 2, a similar study was conducted with a sample of 42 Chinese university students (M age = 22.3 years, SD = 2.5), and a similar pattern of results was obtained. Further analysis indicated that when making decisions for others, only buyers increased their valuations, therefore mitigating the seller-buyer price discrepancy. Finally, the findings were interpreted from the perspective of Construal Level Theory.

Risk of Rare Disasters, Euler Equation Errors and the Performance of the C-CAPM

This paper shows that the consumption-based asset pricing model (C-CAPM) with low-probability disaster risk rationalizes large pricing errors, i.e., Euler equation errors. This result is remarkable, since Lettau and Ludvigson (2009) show that leading asset pricing models cannot explain sizeable pricing errors in the C-CAPM. We also show (analytically and in a Monte Carlo study) that implausible estimates of risk aversion and time preference are not puzzling in this framework and emerge as a result of rational pricing errors. While this bias essentially removes the pricing error in the traditional endowment economy, a production economy with stochastically changing investment opportunities generates large and persistent empirical pricing errors.

An investigation into the financing of flexible endowment assurances

1.1. In the past ten years, traditional with-profit endowment assurances have been faced with severe competition from two new products, which offer considerable flexibility to the policyholder combined with certain guarantees not normally available in the traditional endowment policy.The first of these new products, unit-linked assurance, has been analysed in some depth in recent papers submitted to the Institute, Faculty and Tokyo Congress. In particular, papers by Benjamin, Wilkie and Scott have developed stochastic models that have enabled the premiums and valuation reserves for maturity guarantees under these policies to be quantified with a much greater degree of certainty than had previously been the case.