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...“I wouldn’t say it’s halfway house, I’d say it’s a journey,” he said, adding, “you could not find a better encapsulation of rentier economics” than the investment managers and pension funds who own freeholds...
...To be confident their pension money will last through retirement, a saver has conventionally been told to limit withdrawals to 3-4 per cent of the value of the fund each year....
...Seems to me, therefore, that unless I can beat the S&P 500 — in sterling to match my liabilities — I shouldn’t bother. The author is a former portfolio manager....
...He wants to stay anonymous, so I’m going to call him Hamlet because he asks: “To crystallise or not to crystallise?” Crystallising is the process of accessing the funds in your pension....
...case of a volatility surge during a market crash, the gamma and delta of the covered calls would quickly go to zero but wouldn’t reinforce the market move (i.e., gamma won’t turn negative)....
...Likewise, there is no correlation between corporate tax rates and shareholder returns. But, best of all, my fund is protected from harm by its low valuation....
...Thus only a fraction of overall AUM is deployed in strategies that have a direct impact on the VIX® index (e.g. 1-month over/underwriting strategies on the S&P 500 index)....
...Is the asset management industry ready for T+1?...
...Of the almost $1.7tn invested in dedicated small and mid-cap funds globally, nearly $1.3tn of it is invested solely in the US, according to Morningstar....
...The P/E of that company is 14 — which is the unweighted harmonic mean of 10, 10, and 100 (the formula is 3/(1/10+1/10+1/100))....
...Jonathan Booth, 64, from Hertfordshire, is one of around 17,000 customers of the Bristol-based Hartley Pensions who have been unable for 18 months to transfer their funds — totalling about £1.3bn — to other...
...“I don’t want my job and savings at risk at the same time,” he says. “It’s the opposite of diversifying.”...
...I don’t want to read too closely into the wording of either statement, but I do think we should at least take Buffet at his word: there really is no reason to expect meaningful outperformance from Berkshire...
...On this front, the value of invested assets that Preqin reports is done on a net basis, i.e. after subtracting the amount of any external funding....
...“During the second world war, US soldiers were fed mutton — could’ve been goat, could’ve been sheep — and they came back saying ‘I ain’t never eating that crap again’”....
...“You don’t need your hedge funds to beat the S&P every year, but you do want them to beat it over time, for instance over the past decade,” said a pension fund adviser who allocates billions of dollars to...
...Materials EPS are expected to fall 24 per cent and cyclically sensitive industrials to rise only 1 per cent (during a supposed manufacturing upturn, no less)....
...Widening the aperture doesn’t help; dividend yields in the past 10 years averaged 1.8 per cent. Buybacks ate their lunch. And no one cared. The vast majority of people still don’t care....
...“It shouldn’t be a big part of your portfolio,” he says. “No more than 5 per cent.” But the wealthy of the world appear to disagree....
...When rates went up, pension funds saw the stock market go up and rates go up. A lot of pension funds had not been fully funded....
...Yet, a hard-charging hedge fund boss based on the French Riviera has become enmeshed in the finances of a town 1,000 miles away, after Warrington Borough Council embarked on a debt-fuelled journey into speculative...
...But the vast majority of the 1,500 or so domestic companies listed in the UK are British companies with significant operations here. Maybe the problem is that UK Isas won’t pack a big enough punch....
...“I don’t actually think the mutual fund is dead. I think the mutual fund is now a retirement vehicle,” says Dave Nadig, who helped design some of the first ETFs in the 1990s....
...And while corporates have been the dominant buyers of equities over the past year, there’s $6tn of dry powder sitting in money market funds that could be dislodged by lower interest rates: The S&P 500’s...
...If your fund is at or near the old lifetime allowance, the possibility of a reintroduction of a cap on lifetime pension saving needs to be weighed against the other incentives....
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