Tag Archives: LDI

No blubbing over the future of RPI please.

Posted on November 28, 2020 by henry tapper

“I love the way they are doing this – it is not a move from RPI to CPIH, but recalculating RPI as if it were CPIH – and unless the Bank of England says that is a material change, eliminates … Continue reading →

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When simple is harder than complex

Posted on February 19, 2020 by henry tapper

Unfortunately complexity is a problem we see all too regularly in finance and investment, for the simple reason that complexity sells. Why? In this thoughtful article, Andrew Linz, a young consultant at Lane Clark and Peacock, challenges accepted wisdom. This … Continue reading →

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CDC guarantees nothing! If that freaks you out – CDC is not for you!

Posted on September 16, 2018 by henry tapper

It being early on a Sunday morning, the coots playing around Lady Lucy and a wind rustling through the willows, I’m minded to turn my mind yet again to John Ralfe’s queries on CDC. Ok clever clogs. 10 easy #CDC … Continue reading →

Posted in CDC, pensions | Tagged , , , , , | 1 Comment

Are bonds “suitable” assets to meet the promises of a pension plan?

Posted on September 11, 2017 by henry tapper

    Pension funds are struggling to find suitable assets in which to invest, says Pat Race of KPMG in an article in FTfm. The headline of the article is that “North American Pension Funds grow assets faster than their … Continue reading →

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We save for certainty – what LDI can learn from Funeral Plans

Posted on July 7, 2017 by henry tapper

  There’s controversy over the management and sale of Funeral Plans this morning. Fairer Finance report that many plans are simply no good and that this is often because they pay commissions of up to £1000 to those who sell … Continue reading →

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The value to me of “set and hold”!

Posted on June 27, 2017 by henry tapper

  The FT is masterful with understatement. A 2% charge can take quite a chunk out of the overall portfolio return If your predicted investment return is (say) inflation +3%, having to earn 2% to pay your investment manager, custodian … Continue reading →

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Diversity, Narratives* and Pensions (Con Keating)

Posted on January 20, 2017 by henry tapper

This blog first appeared in Professional Pensions, if you’ve read it before, read it again. “What we observe is not nature itself, but nature exposed to our method of questioning.”    W. Heisenberg, Physics and Philosophy: The Revolution in Modern … Continue reading →

Posted in actuaries, advice gap, Bankers, pensions | Tagged , , , , | 3 Comments

Insuring too much for living too long

Posted on January 18, 2017 by henry tapper

I went to an interesting debate this morning about the DB deficit crisis (what crisis?). A number of interesting things emerged, such as a statement that a pension scheme cannot get a real return on its investments. I looked at … Continue reading →

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“Sunspots” (Con Keating)

Posted on January 11, 2017 by henry tapper

Although not at this week’s Pension PlayPen lunch, Con asked for an account of the conversation; I mentioned that those in the room were pleased that schemes owning large amounts of index-linked gilts, had enjoyed bumper returns last year. It … Continue reading →

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End of the road for LDI?

Posted on January 10, 2017 by henry tapper

Thanks to those brave souls who braved “Southern”, the tube strike and filthy weather to attend yesterday’s lunch which asked “has LDI had its day?”. One answer to that question was clear, I learnt that the top performing asset class … Continue reading →

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