Thank you very much for this comment which I will use in future posts. Whoever you are "anonymous" , I…
I would be very happy to help in setting this up ; henry.h.tapper@gmail.com or 07785 377768 if you'd like to…
Dear all, Regarding the potential acquisition of the "Lady Lucy" for £75,000, I have set down some initial thoughts on…
The foundational social contract of UK pensions was established under a clear compact: Exempt-Exempt-Taxed (EET). Savers agreed to sacrifice current…
Tag Archives: LDI
Burnt at the stake – the 2022 “lifestyle” fiasco is no joke.
End of the sub-zero bond yield era https://t.co/4iygBZ3Z4o — Josephine Cumbo (@JosephineCumbo) January 5, 2023 Over the Christmas period , Japan decided to join the rest of the world and call time on “free money”. You now have to pay … Continue reading
How private pensions became a synthetic version of SERPS
Once upon a time , the Government used to pay pensions based on contributions made by employers and employees. There was no formal pension fund that backed up this pension scheme but the Government , if it did not have … Continue reading
2023 is not an hour old before pensions hit the headlines
The first thing I read in 2023 was the lead story by Josephine Cmubo in the new year’s day edition of the Financial Times. Her article reignites the fires flaming before the Christmas break over the purpose of pension scheme … Continue reading
Posted in pensions
Tagged Edi Truell, jo cumbo, LDI, Long Term Assets, pension funds
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The fall-out from LDI will dominate DB pensions in 2023
The FT has published a piece this morning suggesting a “blame game” between consultants and the providers of LDI solutions. Was it the providers or the advice given by investment consultants on implementation and management of leveraged LDI strategies … Continue reading
“DB savings should be treasured as a national store of wealth!”
You will not know “Jnamdoc”, it is the pseudonym of a regular contributor to this blog. He has taken to writing comments on my blog which are often more interesting than the blog itself. I’d like to draw your attention … Continue reading
LDI more good than harm? LDI more harm than good?
I’ve been wondering why I’m interested in LDI. It’s not out of academic interest – I don’t think academically and I’m not a practitioner. I have no skin in the game. But LDI interests me as someone who’s interested … Continue reading
Posted in pensions
Tagged CDC, Conditional Indexation, Indexation, LDI, LLDI, Pensions, TPR
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Arise Australia Fair!
The Australian retirement savings market has developed in 2022 in a positive way, a way I hope that the UK can follow. My friend Jim Hennington, signs off 2022 with this message about funding income from workplace retirement saving. Risks … Continue reading
LDI and Gilt Market Disruptions – some meanderings
Many of the advocates of leveraged LDI have claimed that they were able to weather the March 2020 pandemic panic well. We examine the price movements (using BoE data) over the month of March 2020 below as Figure 1. This … Continue reading
2022 – a year when pensions tightened our belts.
There have been many good years for pensions this century and most people find themselves much better off than they were when pensions were last formally reviewed by the Government in 2004. But 2022 was a year when almost … Continue reading
LDI’s origin story is crucial to its future.
The question of how leveraged LDI came to become business as usual for DB pension schemes is raging at the Work and Pensions Committee. After a request from Committee Chair – Stephen Timms – the Pensions Minister has sent this … Continue reading
There is an alternative view of "ownership" which is that people own a stream of income for as long as…