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Posts Tagged ‘pension’


Bulk Annuities – 2017 NOT the year of the buy-out?

A couple of articles on the bulk annuity market caught my eye this week and reminded me of a great blog post authored by my Seattle based colleague, Bob Collie back in October, “What about the 98% of plans NOT doing annuity buyouts?”. Wednesday’s Financial Times contained an article* predicting a big recovery in the

January 6, 2017 Categories: Investment, Markets

Be cautious trusting correlations

I was discussing with colleagues recently the market’s change in near term focus from the possibility of a Grexit to the evolution of Fed monetary policy. The conversation moved to a discussion of the risks of relying on traditional diversification when we know that correlations are neither stable nor easily predictable. This reminded me of

The application of smart beta to currency management

Most of the discussion of smart beta so far has focused on the management of equity portfolios. At the recent Russell Institutional Summit, Keith Brakebill described how the concept is being extended to currency markets. “Smart beta” is really factor exposure management… I am in the camp that defines smart beta as factor exposure management.

Jun 4, 2015 Categories: Investment Strategy

When yields go negative, what’s an investor to do?

With interest rates at astonishingly low levels—even to the point of some instruments offering negative yields—what’s an investor to do? Some may decide that the answer is to take more risk and look for more return from other sources. But it may make more sense for some investors to look to reduce the amount of

Apr 24, 2015 Categories: Markets

Saving for retirement – the biggest changes to pensions in 100 years (for now!)

This is my third and last blog of this series. In my first blog I looked at the three phases of retirement most of us are likely to experience. The amount of income required at each stage will depend on our age and activity levels. In my second blog I noted that given the new

Saving for retirement – so what’s to smile about? Blog 2

Saving for retirement – so what’s to smile about? In my first blog of this series I talked about how saving for retirement was tough given the huge expenses we all run up. However alls well that ends well ….and if you do put away more now then the bigger your retirement smile will be

Saving for retirement – so what’s to smile about?

Saving for retirement – so what’s to smile about? Saving for retirement is hard work but well worth that smile in retirement! The little things in life such as mortgages, rents, school fees etc tend to get in the way of this important saving. When looking ahead to post retirement years, I feel it is

Everybody knows that pension funds are derisking, right?

Everybody knows that pension funds are derisking, right? Except, it seems, the data. The release of the PPF’s Purple Book 2014 last week gives us the latest comprehensive data set. As the chart below shows, having made big derisking asset allocation shifts in the noughties, pension fund asset allocations have been pretty static for a

Nov 6, 2014 Categories: Pension Insights

DIY buyout – for the many, not the few

With the party conference season upon us, you may well be groaning at being forced to listen to hackneyed phrases such as: “For hardworking families”; “Forward not backward”; “One nation”; “Britain can deliver”; and so on and so on. However, listening to one of these phrases, “For the many, not the few”, got me thinking

Oct 16, 2014 Categories: Investment Strategy

The two flavours of mean reversion

Most investors are familiar with mean reversion, the idea that extremes tend not to persist, and that outstandingly good (or bad) performance tends back toward the average in time. Far fewer are familiar with the fact that there are two distinct types of mean reversion, and these two types need to be handled differently. The

Sep 25, 2014 Categories: Investment Strategy

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