Reading Time: < 1 minute The two charts below (data sourced from the PPF website) really tell you everything you need to know about risk management of UK pension funds over the last 10 years. Assets have grown steadily from c£700bn to c £1.3trn, although admittedly a very large part of this (possibly all of it) is due to contributions. … More A Decade of UK Pension Risk Management in 2 Charts
Reading Time: 2 minutes It can be easy to forget when caught up in day-to-day events and headlines that we’ve been through an incredibly benign and profitable period for any individual or organisation investing in financial markets. One way of illustrating this, which we particularly like is to look not just at the returns that have been generated, but a measure … More Many Happy (Asset) Returns – part 1
Reading Time: 4 minutes I’m just back from a sunny and relaxing summer break, where I had the great pleasure of reading and reflecting on the excellent book The Success Equation (“TSE”) by Michael Mauboussin which sets as its goal “untangling skill and luck in business, sports and investing“. The clear aim of this “untangling” being the ability to make better … More Distinguishing Skill & Luck
Reading Time: 2 minutes Any pension scheme looking to produce a valuation as at 30 June 2015 is likely to be showing a more favorable overall position than they would have done in March 2015 or December 2014 (as demonstrated by data from the PPF 7800 index of pension funds updated to May 2015 below). The overall funding level … More Rates Rollercoaster Continues
Reading Time: 4 minutes Asset Liability Modelling (“ALM”) sure has come a long way since Frank Redington began talking about the interest rate immunization of life office books in the 1950s, or since models such as the Wilkie Model were first developed to deal with need for stochastic projection of economic variables for insurance companies and later pension funds. Today … More Modern Day ALM – Get in the Mix
