30
Efficiency can be
measure by calculating cash
flow return on
investment and cash
flow
return
on
investment
revenue.
The
higher
that
these
ratios
the
higher
the
efficiency
of
cash usage in investment portfolio.
Cash Flow Return on Investment = Cash Flow from Investing Activity
/ Total Investment
Cash Flow Return on Investment Revenue = Cash Flow from Investing Activity
/ Income from Investment
2.3.5 Measuring the Investment Performance of Pension Fund
Aside
from the common analysis
method,
it
is very
important
to analyze the
investment
performance
of
the
pension
fund.
The
fiduciary
responsibilities
of
pension
plan
sponsors,
administrators,
managers,
trustees,
and other mandate that
they periodically
evaluate the investment performance of the
fund’s asset pool. Investment performance
measurement provides information on managing pension fund (Logue and Rader, 1998,
p.159):
How well a fund is doing in meeting its investment goals?
Investment performance
measurement helping
meet the goals of
the pension plan
or whether it hurting.
Performance measurement offers insights
into
the general competence of an
investment
manager
and
establishes whether
the
manager
is
following
the
investment policy and guidelines provided by the sponsor.
 |