Historically, Canadian pension accounting standards were viewed as one of the barriers encountered by employers wishing to reduce pension risk. These barriers included the ability to defer and amortize experience gains and losses, the inclusion of expected additional returns from risky assets in the expected return on assets (EROA) calculation, and the ability to use a smoothed value of assets to calculate the EROA.
Originally from our sister publication, Investmentreview.com. Interest rate risk and liability driven investment (LDI) have made headlines in the last few years. There is even talk now of versions 2.0 or 3.0 of LDI strategies. Implementation of such strategies has certainly been delayed in the current low-interest rate environment. However, it is believable that, at […]
How to manage the risks of de-risking.
The ancient Romans are widely considered to have been master engineers and builders. One of their many innovations was the design and construction of a massive network of roads spanning across what would encompass much of continental Europe. Since Rome was the centre of the Roman Empire, the system of roads was created to facilitate the flow of people, goods and weaponry to and from the Roman capital—hence the idiom “all roads lead to Rome.”
Since the global credit crisis, investors have become more attuned to risk in general and to portfolio volatility in particular. The investment industry has responded with a dizzying array of products and strategies designed to help manage volatility. A clearer understanding of these sources of volatility reduction can mean that investors are better placed to make informed assessments of their relative attractiveness.
Coverage of the 2012 Risk Management Conference.
Coverage of the 2011 Global Investment Conference