Efficiency, risk aversion and portfolio insurance: an analysis of financial asset portfolios held by investors in the United Kingdom

Article Abstract:

A study was conducted to examine the efficiency of asset portfolios in the UK. Using data collected from the Financial Research Survey from Apr. 1991 to Mar. 1992, it is discovered that investors in six different wealth ranges possess mean-variance efficient portfolios of financial assets. Coefficients of relative risk aversion for investors in each wealth range are much higher than those found in earlier studies. The implication is that investors are not willing to hold risky assets if they are not given a high enough risk premium and are willing to pay for portfolio insurance.

Research, Risk management, Portfolio insurance

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The impact of retirement wealth upon portfolio composition of individuals

Article Abstract:

Time series data is used to examine the impact of retirement wealth upon the portfolio mix of individuals. Retirement wealth has a negative correlation with the percentage of intermediate-, long-term bonds and equities when home equity is classified as a consumption good. A relationship exists, but of less significance, when home equity is classified as a financial asset. The elasticity of these assets implies weighty impact on individual portfolio composition with variations in retirement wealth.

Evaluation, Retirement income

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Does it matter what type of pension scheme you have?

Article Abstract:

An overview is presented on the different varieties of retirement benefit plans available in the UK, along with their management processes and evaluations of each. It is argued that pay-as-you-go plans are unreliable, given labor market and demographic fluctuations, and that defined contribution and defined benefit schemes are more adaptable to these circumstances.

United Kingdom, Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Pension & Benefit Regulation, Statistical Data Included, Pension funds, Retirement benefits

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