Financial Risk Management — News


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We cover recent developments in the superannuation industry, post-retirement products, the cost of managing risk, online technology, financial advice and more. To get our newsletters, sign up here.

Investing

Why options are not the only solution to protect against gap events

Investors using put options to protect against gap risk face significant challenges.

Should super funds be lowering their investment targets?

Super funds can’t offer investment return certainty but they can offer long-term probabilities.

The failings of diversification: The benefits of a multi-tiered approach

Effective risk management begins with diversification, but doesn’t end there.

 

Additional articles

 

Retirement

Big data finally reveals how retirees really live

Data is just one component of delivering a personalised retirement experience.

Survey: Asia-Pacific firms challenged by retirees’ diverse product feature demands

A survey of Asia-Pacific firms revealed that retirees’ demands for products with diverse features create a challenge in the market. Firms need to understand drivers of these needs and communicate and deliver better solutions. Despite the challenges, the survey results highlight an opportunity to fill a gap in the market.

Super funds: Learn more about members or risk regulatory intervention

Super funds should understand their member behaviour at a more fundamental level and funds that ignore that advice will do so at their own peril.

 

Additional articles

 

Financial Planning

Goal tolerance: when goals meet risk tolerance

Placing a greater emphasis on clients’ objectives and wrapping this around their risk tolerance can produce higher levels of engagement and offers a more accurate pointer to investor behaviour.

Why the automated advice industry can’t leave goals behind

Automated advice has the potential to deliver better results for investors.

Probability is power, but numbers alone can’t change behaviour

The power of sophisticated analysis, combined with more effective communication from advisers taking into account behavioural biases, can help investors achieve their goals like never before.

 

Additional articles

 

Behavioural Finance

Why short-term thinking is here to stay

Short-termism is still at work today and a key driver behind the irrational decisions investors are prone to making.

Behavioural biases: Tackling loss aversion

Loss aversion is a key behavioural bias which needs to be overcome if retirees are to have any chance of reaching their savings target.

 

Issued by Milliman Pty. Ltd. (Milliman AU) (ABN51 093 828 418) (AFSL 340679) Please contact Milliman to obtain more information about the products and services we offer as not all products and services may be suitable for you.

The Milliman Managed Risk Strategy is available only to persons who meet the requirements for a "wholesale client" under the Corporations Act and trustees of superannuation funds with net assets of at least A$10 million (Clients). Clients must have an agreement with Milliman Pty Ltd ABN 51 093 828 418 AFSL 340679 (Milliman) to implement the strategy (Service) against a portfolio of the Client's equity investments (such as listed shares), which enables the Client to use the Service or to offer the Service to members of the Client's superannuation fund.

Milliman makes no recommendation and gives no statement of opinion to Clients, members of Clients' superannuation funds or their respective advisers in relation to use of, or any investments, in the Service. Before considering whether to use the Service, Clients may wish to obtain professional advice (including taxation advice). Investments in, the Service are subject to market and other risks, and no guarantee or assurance is given by Milliman that such investments will not give rise to losses or that performance of the Service will completely reflect inversely the performance of equities markets generally or a Client's portfolio of equity investments. While generally assets which are acquired through use of the Service will be liquid, this may not be the case in all circumstances. Further, during periods of sustained market growth, the return to Clients from the combination of their portfolio of equity investments and assets held in the Service should be less than if the Client did not participate in the Service. Fees and conditions apply to use of the Service.

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