Asset owners have to deal with the challenge of a potentially low-yielding investment environment for the foreseeable future and the likelihood of a market correction in the nearer term, with Q4 2018 providing a simple reminder of the downside risk of asset allocation. The traditional approach...

CAPM came under a lot of scrutiny and attack as its simplicity also led to extensive testing which did not bear out the conclusions. This paper seeks to re-think CAPM in light of the broader trend in the institutional world to implement Liability Driven Investments (LDI) to see if this can help...

Kahneman-Tversky's (KT) seminal paper on Prospect Theory (PT) found that individuals placed value on changes in wealth. Individuals appeared to display different reactions to gains and losses and, displayed loss aversion, which depended on the distance from a “critical value”. These two...

There is a growing retirement crisis and most of the focus has been on the fact that individuals are not saving enough for retirement, may not have access to pension schemes, and find it difficult to choose from a wide range of retirement products. One solution that has been considered is to...

There is a growing retirement crisis and most of the focus has been on the fact that individuals are not saving enough for retirement, may not have access to pension schemes, or are financially illiterate. However, the bigger issue might be that the assets/financial products available to...

Knowledge Management (“KM”), in institutional asset management, is defined as the explicit and systematic management of knowledge – and its associated processes of creation, organization, diffusion, use and exploitation – in pursuit of improving portfolio performance and managing risks....

A commonly-accepted retirement goal for a healthy pension is for it to sustain the relatively higher standard-of-living of the latter part of one’s working life throughout retirement. A recent innovation implemented by Brazil in January 2023 might provide a solution to the pension challenges...