Longevity Risk

As life expectancy increases around the world, investors may soon realize that with longer life also comes a longer liability. Retirement occurs well beyond the "age of 65" as countries around the world increase the retirement ages and eligibility for governmental retirement assistance programs. 2017 Nobel Prizer winner and University of Chicago Booth School of Business Professor Richard Thaler puts it succinctly, "You have to worry about getting unlucky and living to 100."

Investment Advisers in Asia: The Missing Fiduciary Duty

Given the inherent conflict of interests in the financial adviser industry, since there seems to be a regulatory gap in Asia, the burden falls upon investors to understand the investment management industry. Unsurprisingly, most investors prefer to use simpler assets as store of wealth, such as bank deposits, certificates of deposit, or even real estate.

Who Regulates Your Investment Adviser?

Investors should be aware of who their regulators are and whether the regulators are well-equipped to be an effective deterrence against potential misconduct by their financial advisers. Investors in areas with a weaker or financially constrained regulator will need to be more active in monitoring their own investment advisers and do not take the fiduciary duty for granted.

Rethinking the Equity Risk Premium

P. Brett Hammond, Jr.Martin L. Leibowitz, Laurence B. Siegel Source: The CFA Institute Research Foundation Publications Link to Full Paper. In 2001, a small group of academics and practitioners met to discuss the equity risk premium (ERP). Ten years later, in 2011, a similar discussion took place, with participants writing up their thoughts for this volume. The result is a … Continue reading Rethinking the Equity Risk Premium