Archivio per 10 ottobre 2014

10
Ott
14

Big Decisions — Judging an Uncertain Future from the Past

With recent estimates of pension deficits running into the multiple trillions, it now seems obvious that many decision makers in the past have somehow made some big mistakes.

Speaking at the 2014 Annual CFA Institute Conference in Seattle, Ronald J. Ryan, CFA, recalled that as recently as the late 1990s, pension plans — longtime investors in equities — had successfully achieved large surpluses but unfortunately decided not to use them to immunize their liabilities. Instead they chose to continue with high equity allocations and, by a seemingly clever accounting wheeze, adopted a return-on-assets objective to achieve a fully funded plan.

It turned out to be a disastrous decision. According to Ryan, solving the pension crisis now requires drastically better accounting rules, revolutionary asset allocation changes and bold approaches to risk management and indices. Hard to understand how big decisions — judging future uncertainties on past evidence — can go so wrong since it all seems so obvious now.

Source: blogs.cfainstitute.org

See on Scoop.itBounded Rationality and Beyond

Annunci
10
Ott
14

Big Decisions — Judging an Uncertain Future from the Past

See on Scoop.itBounded Rationality and Beyond

With recent estimates of pension deficits running into the multiple trillions, it now seems obvious that many decision makers in the past have somehow made some big mistakes.

Speaking at the 2014 Annual CFA Institute Conference in Seattle, Ronald J. Ryan, CFA, recalled that as recently as the late 1990s, pension plans — longtime investors in equities — had successfully achieved large surpluses but unfortunately decided not to use them to immunize their liabilities. Instead they chose to continue with high equity allocations and, by a seemingly clever accounting wheeze, adopted a return-on-assets objective to achieve a fully funded plan.

It turned out to be a disastrous decision. According to Ryan, solving the pension crisis now requires drastically better accounting rules, revolutionary asset allocation changes and bold approaches to risk management and indices. Hard to understand how big decisions — judging future uncertainties on past evidence — can go so wrong since it all seems so obvious now.

See on blogs.cfainstitute.org




Time is real? I think not

ottobre: 2014
L M M G V S D
« Set   Nov »
 12345
6789101112
13141516171819
20212223242526
2728293031  

Commenti recenti

Lorenzo Bosio su Un testo che trascende le sue…

Inserisci il tuo indirizzo e-mail per iscriverti a questo blog e ricevere notifiche di nuovi messaggi per e-mail.

Segui assieme ad altri 1.040 follower

Latest Tweets

Annunci

%d blogger hanno fatto clic su Mi Piace per questo: