Reading Time: 5 minutes I’m sure you can picture the scene. A group sits down to make a critically important decision. Much discussion follows. One person after another lays out their views, lots of points are made. There are some clear areas of agreement. Nods all round. The answer starts to become clear. With a few changes a consensus … More [Books] Wiser – how group decisions can let us down
Reading Time: 1 minute DB Pensions News September 2016
Reading Time: 4 minutes Just back from a couple of great (sunny!) days in Edinburgh for the institute of actuaries conference which importantly this year incorporated pensions, investment and risk components together for the first time. Quite a lot of interesting takeaways and observations from around the industry. As Marian Elliott said in the first session “To the worm … More Two Days Among Actuaries
Reading Time: 5 minutes This article first appeared in the May 2016 edition of The Actuary magazine (here) The past 10 years have been a uniquely challenging, volatile and uncertain period for UK defined benefit pension schemes. How well have they weathered the storm? We found out by analysing data published by the Pension Protection Fund (PPF) in its … More Taming Pension Risk?
Reading Time: 4 minutes UK pension funds have been through a hell of a ride over the last 10 years, and more. changes in regulation, longevity, interest rates, equity markets and the changing fortunes of sponsoring companies have all contributed to making the UK pension industry a tricky place. But are the lessons learnt relevant to other investors, particularly Sovereign … More Five lessons from UK Pensions for SWFs and Others
Reading Time: 2 minutes We see literally hundreds of fund managers and investment strategies a year; which do we think are most likely to be successful in 2015? We really see three important things to focus on: risk, diversification, and freedom. Let’s take each of those in turn. Risk. This might sound obvious, but as we see it, the … More Which Investment Strategies Will Thrive in 2015 ?
Reading Time: 4 minutes Tail risk hedging seems to be a popular topic at the moment, why? Markets are at highs, but plenty of risks remain. While equity markets have rallied considerably in recent years – The equity market (as measured by the MSCI World Index) is up over 30% since Mario Draghi proclaimed the ECB had “removed tail risk for … More 3 ways to protect a portfolio against downside risks
Reading Time: 6 minutes Intuitively we know that one of the largest single risks facing a defined-benefit pension fund is longevity – that of its members living longer. Its now well known of course that this risk has repeatedly hurt schemes in the past, as past predictions on the path of longevity improvements have proven to be incorrect. … More Live long & prosper: pensions schemes, longevity risk & investment strategy
Reading Time: 4 minutes When “Past performance is not necessarily a guide to the future” has never seemed more apt The rear view mirror It’s now been just over 5 years since equity markets hit their lows at the peak of the fallout from the banking/credit crises of 2008. A lot can happen in 5 years. This year’s crop of … More A lot can happen in 5 years, the rear view mirror and the road ahead
Reading Time: 4 minutes Read the full paper here update, this paper was quoted in a front page article in Financial News in the weeks of 7th April 2014. The online version can be found here A recent change to the banking regulatory landscape brought pension risk to the fore… On 29th November 2013, following a consultation, the Prudential … More What Lies Beneath: The hidden cost of pension fund equity risk