At a 2019 retirement security conference in Brazil, one of the authors proposed that Brazil introduce a low-cost, low-risk, simple and liquid bond innovation: “SeLFIES”—Standard of Living indexed, Forward-starting, Income-only Securities. SeLFIES would serve as the relative safe asset for...

Institutional portfolios struggled in 2022 as hawkish central banks raised rates, leading to declines in equity, fixed income and REITs. Even illiquid assets like private equity/venture capital, and private credit have struggled. A new opportunity has arisen for institutional investors as the...

English Abstract: 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...

Investment theory has implications for asset allocation, asset pricing and risk-adjusted performance. The statement in finance that “investors maximize the utility of wealth, is largely incorrect” assumes that investors are principals with a deterministic goal. Recommendations from theory...

This asset pricing model incorporates four positive realities of investing; that investors have many stochastic goals, seek to delegate to skillful agents, explicitly specify risk budgets, and maximize risk-adjusted relative returns. Critical to investment practice, it provides asset pricing,...

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...

Investors are creating portfolios that align with their specific goals and values. We posit that goals and values should be translated into Goals-based Liability Indices (“GLIdes”). GLIdes can be used to achieve goals, benchmark the asset portfolio, and improve governance.They allow Boards...

International investing and trade has one unintended consequence; namely, the creation of currency risk which causes the local currency value of the foreign receivables or investments to fluctuate dramatically because of pure currency movements. The academic literature on currencies has typically...

As with all countries around the world, the ageing of Japanese society is putting severe pressure on the public pension system. The Japanese system is complex with a basic pension for all citizens, but different forms of additional support for self employed, private sector and public sector...