This dissertation is an examination of the rates of return obtained on the assets of municipal pension funds located in the State of Florida that are managed by boards of trustees. The risk characteristics associated with the employment of these assets are also examined. The study is based on a sample of 37 plans out of a population of approximately 200 which fit the "trustee managed" classification. Before addressing the sample data the current literature and various evaluation techniques are reviewed. The methodology employed is based on the works of Dietz and modified using the semi-variance techniques favored by Osteryoung. / The composition of these plans seems to be related to their size as measured in total asset value. Smaller funds are composed primarily of low risk deposits while larger funds have diversified portfolios. There are exceptions to this rule, of course. Analysis of their operating characteristics really entails a study of management responses to changing market stimuli. Also considered, and found very important, is the efficiency with which management handles the stream of contributions. These factors impact on the performance of the sample funds. Performance, as measured by the return earned on total available assets, is compared with the rate of inflation and the cost to the sponsoring cities of borrowing funds. / The conclusions reached are that these pension plans are not performing in a manner which will protect their assets from decreasing in value due to the effects of inflation. The effect of security trading may be detrimental to attempts to obtain efficient trade offs between risk and return, the buy-hold strategy may be the better route to follow. Decisions for or against funding should be made on a case-by-case basis considering the unique conditions concerning individual sponsors and plans. / Some areas for future research in this area might be an investigation into the specific investment goals of these funds, an application of the capital asset pricing model to the performance of pension plans, and the development and use of a simulation model to test performance of these funds without considering the legal restrictions placed on the composition of their investment portfolios. / Source: Dissertation Abstracts International, Volume: 41-03, Section: A, page: 1130. / Thesis (D.B.A.)--The Florida State University, 1980.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_74136 |
| Contributors | O'LEARY, HAROLD EDWARD., The Florida State University |
| Source Sets | Florida State University |
| Detected Language | English |
| Type | Text |
| Format | 214 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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