Reading Time: 7 minutes The evidence is undeniable. We all have brains that are set-up to make consistently bad choices when it comes to domains that are complex, ambiguous and unpredictable – like investing. We overestimate our own ability, screen out information that conflicts with our pre-conceived views, we fear losses, and anchor to what feels well known and … More Less-biased Thinking by Design
Reading Time: 5 minutes I really enjoyed this fantastic article which featured in the March issue of Harvard Business Review, and explores the Deloitte Business Chemistry model in relation to trying to understand differing work styles and team dynamics. I’d definitely recommend reading the article in full if you haven’t already. Pensions It got me wondering – how might … More Why a Focus on Personality Matters for a Better Pensions Team
Reading Time: 10 minutes The Work & Pensions Select Committee (WPSC) Pension Protection Fund and Pensions Regulator inquiry consultation certainly attracted a good number of responses. I count almost a hundred in that list and presumably not all are yet published! Most of the major investment & actuarial advisory firms are represented there, as well as PPF and The Pensions … More Consulting firms reply to the WPSC Inquiry
Reading Time: 1 minute Yesterday we held our annual Unconference which launched our Asset Class publication. We also made an important announcement – we launched our new thought leadership institute, the Redington Ampersand Institute. Check our the video below to understand what it’s all about. http://info.redington.co.uk/ampersand-institute
Reading Time: 2 minutes The PPF today published its monthly estimates of scheme funding position for the schemes in the PPF 7800 index. Not surprisingly, given the market moves over September 2015, and over the third quarter generally we saw a 5% decline in funded status over the quarter due to both declining asset values and increasing liabilities. It’s … More Mind the gap – funding levels fall as market volatility hits assets
Reading Time: 2 minutes In the longevity-hedging space, 2015 is on track to match 2014 as a record year for the total volume of hedging deals, highlighting the significance of this area within the pensions space. Following the Scottish & Newcastle deal in September 2015, the widely followed artemis.bm blog listed c£30bn of liabilties hedged so far in 2015 compared … More Live Long & Hedge?
Reading Time: 2 minutes I had the very great privilege of taking part in a roundtable lunch with Myron Scholes last week, thanks to Janus Capital (see unashamed photo below) – hosted in the Fenchurch Brasserie in the well-known “walkie-talkie” building in London the views were pretty good as well (see below). Despite his fame, Myron still clearly thinks deeply … More Tail Risks, LTCM & Constant Volatility … notes from a lunch with Myron Scholes
Reading Time: 3 minutes A lot has changed since 1962, particularly in the world of finance and pensions. UBS recently published a weighty tome containing some fascinating data on global markets and pension funds: A long-term perspective on pension fund investment Worth a read, one thing I found particularly interesting was the long-term data going back 50 years on … More Changing Times – 50 Years of UK Pensions
Reading Time: 3 minutes We’ve been through an amazingly benign and profitable time for investors in many financial markets, something I discussed further here. That’s great to know, especially for those that participated. Not so helpful going forward. A better question is- What’s your expected future return from equities (and other assets)? Simple question, tricky answer. And one we … More Many Happy (Asset) Returns – part 2
Reading Time: 2 minutes The PPF publishes regular updates on the financial health of DB pension schemes in the UK (the PPF 7800 index) and also its own funding position. In recent times there has been quite some contrast between the two sets of figures (thanks to Pensions Expert for a great article highlighting this. Sure, the PPF collects … More What Can Pension Schemes Learn from the PPF ?