Benefits and asset allocation

Benefits and asset allocation

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Management of Financial Institutions (FIN 255)

Unit 9: Pension Funds

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of benefits and asset allocation.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• Retirement benefit calculation using: Flat benefit formula, career average formula, and final pay formula
• Return and impact of asset allocation

Detailed Microsyllabus

1. Benefit calculation

   1. Flat-benefit formula.
   2. Career-average formula.
   3. Final-pay formula with supplied service and salary inputs.

2. Asset allocation

   1. Portfolio return and risk effects.
   2. Funding and time-horizon considerations.
   3. Interpret assumptions and benefit uncertainty.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 86–88.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.