Richard Hancock
Comments - Page 4
The link given at the end of the article takes me to a Microsoft(online) sign in page, so I wasn't able to follow it to the research paper (which is presumably ERI_Scientific_Beta_Publication_Measuring_Factor_Exposure_Better.pdf).
The research paper does appear to be easily and freely downloadable from the ERI Scientific Beta website. The URL is: https://www.scientificbeta.com/download/file/measuring-factor-exposure-better (without an explicit ".pdf" at the end).Very interesting piece.
I can't help thinking this is an enormous cost for very little benefit --assuming it's correct that "only a small number will receive more than an extra few pounds a month". But then I don't have a GMP and so perhaps it's easy for me to be dismissive of GMP equalisation?Thanks for the link to her speech.
I thought it was strange that she referred to "the incomplete nature of the Monetary Union", rather than to "the incomplete nature of the Economic and Monetary Union" (aka EMU)."In 2015, the UK government removed the requirement for pension savers to buy an annuity at retirement."
So many publications, including the Financial Times (and now IPE), have struggled to report the change correctly. It is NOT correct to state that, before 2015, people were required to buy an annuity at retirement.
Budget 2010 (June): "1.117 The Government will end the existing rules that create an effective obligation to purchase an annuity by age 75 from April 2011 to enable individuals to make more flexible use of their pension savings. The Government will shortly launch a consultation on the detail of this change and will introduce transitional measures for those yet to secure a retirement income who will reach 75 in the meantime."
Budget 2011: "2.52 Pensions annuitisation – The June Budget 2010 announced that the effective requirement to annuitise by age 75 would be removed from April 2011. Draft clauses were
published on 9 December 2010 following consultation on the details of the change during summer 2010.
The changes were enacted in Finance Act 2011."The company’s plan was to enable participants to purchase DB rights using assets accrued under DC arrangements"
Are those DB rights in any way related to salary (as in a traditional UK final salary scheme) or are they "simply" a deferred annuity?"Half-spread measure" is a strange piece of terminology; does it come from PRIIPs? Surely "mid price" is more common and more easily understood?
"the EU’s rule regarding pension compensation"
Would be interesting to know which specific rule that is, and also whether it is likely to apply post-Brexit."Parliament gave member states two options in its PEPP rules: either give the PEPP the same rights as local products, or develop a special European-wide fiscal regime for PEPPs. However, Europe lacked the means of forcing member states to support such a move."
I'm confused by the statement that the EU Parliament gave member states the option of "[developing] a special European-wide fiscal regime for PEPPs." How would individual member states do that (if they wanted to)? Would they need to work together through the EU Council?"We have opted for certainty which means a discount rate of 2.4% [rather than the discount rate of 3.5% that they use]."
While a discount rate of 2.4% is more prudent/conservative than one of 3.5%, I don't see how it provides certainty. (I'd be worried if an MP, or anyone in a position of power, really thought that it did.)The FT reported recently ("Donald Trump uses dispute with Turkey to rally evangelicals") that President Trump may be trying to appeal to evangelicals.
Given that evangelicals presumably believe that "the last shall be first, and the first last" (Matthew 20:16), perhaps it makes sense that President Trump is effectively pursuing an "America last" policy?
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Commented on: 2018-11-07T11:27:14.330
ERI Scientific Beta raises alarm over popular factor analysis tools