| Summary: | 碩士 === 東海大學 === 財務金融學系碩士在職專班 === 102 === The paper，using an analytical approach, takes a look at institutional regimes and operational management styles between Hong Kong’s Mandatory Provident Fund Schemes (MPF) and Taiwan’s Pension funds。In addition takes a quantitative approach to calculate and compare the funds returns, while utilizing Sharpe Ratio and Beta to evaluate the risk- reward relationships. The paper uses quarterly reports from the MPF and Taiwan Pension Funds between Sept. 2006 to Dec.2012 to research for the fund with the better overall structure.
Although through these years Taiwan’s Pension Fund has switched from a defined benefits plan to a defined contributions plan its performance and management methods still remain a topic of concern for participants. Moreover, while collecting data for the paper, it was noted that the Taiwan government’s system for preserving and publishing statistical data in this field is still in need of improvement. In comparison to Hong Kong’s pension system, though it does not guarantee a minimum return, but under its stringent regulations the fund’s return and management methods seems to have better performed over the years. MPF also has a more flexible system and a more comprehensive structure for data collecting and keeping; though do consider the fact that Hong Kong is a country highly ranked for its efficacy and a country admired by the rest of the World for having a surplus in its fiscal balance. On the other hand, turning to values at risk, Taiwan’s pension plan is viewed as being more risky, thus would need a better global diversification strategy to improve its performance.
The paper suggests that in order for Taiwan to increase the voluntary contributions ratio among pension funds, it should consider incorporating Hong Kong MPF’s method of letting beneficiaries decide on their investment objects with regards to the portion they have contributed, whether it’s through pension insurance or fund investments, the ultimate goal is to increase the fund’s performance.
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