"Mainstreaming Derivatives".Institutional Investor Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. , August 1999, P. 160. How many public and private pension systems use derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. as part of their investment portfolio? It turns out that nearly 43 percent of survey respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. use them in their retirement plans. Nearly 70 percent have used them for longer than four years. The most frequently cited reasons for using derivatives include: hedging returns--51 percent; enhancing returns--27 percent; and tactical asset allocation--5 percent. By far the most common type of derivatives are listed equity futures and options and listed interest rate futures and options, cited by 65 percent and 48 percent of the respondents. Institutional Investor surveyed 800 corporate and 250 public-sector pension plan sponsors in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion