
The Impact of volatility on living annuity portfolios and the impact on portfolio construction
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Given by Jaco Van Tonder Sales Director at Investec Asset Management
Prior to moving into this role, Jaco was sales director for the South African Advisor team and head of distribution for Investec Investment Management Services.
Having previously worked at Sanlam Group, Jaco occupied various positions which included heading up the product development for the Sanlam platform business, Glacier from 2000 to 2003, and heading up the business development and distribution team from 2003 to 2009.
He is a Fellow of the Institute of Actuaries, and holds a B.Sc (Hons) degree from the University of Stellenbosch
A significant number of South African retirees retire using living (or draw down) annuities. This is an area which practitioners such as ourselves need to concern ourselves more on and in particular, help members achieve the maintenance of their standard of living into retirement on a sustainable basis…
Many prior studies have investigated correlations between the sustainability of living annuities and various factors relating to the construction of the investment portfolios and income draw-down strategies. As part of the work conducted by our next speaker and his colleagues investigating these matters, they were able to quantify specifically the relationship between portfolio volatility and sustainable income draws.
The next speaker believes this has useful applications in areas such as annuity portfolio construction, as well as pricing of volatility smoothing products aimed at the pensions market.
Prior to moving into this role, Jaco was sales director for the South African Advisor team and head of distribution for Investec Investment Management Services.
Having previously worked at Sanlam Group, Jaco occupied various positions which included heading up the product development for the Sanlam platform business, Glacier from 2000 to 2003, and heading up the business development and distribution team from 2003 to 2009.
He is a Fellow of the Institute of Actuaries, and holds a B.Sc (Hons) degree from the University of Stellenbosch
A significant number of South African retirees retire using living (or draw down) annuities. This is an area which practitioners such as ourselves need to concern ourselves more on and in particular, help members achieve the maintenance of their standard of living into retirement on a sustainable basis…
Many prior studies have investigated correlations between the sustainability of living annuities and various factors relating to the construction of the investment portfolios and income draw-down strategies. As part of the work conducted by our next speaker and his colleagues investigating these matters, they were able to quantify specifically the relationship between portfolio volatility and sustainable income draws.
The next speaker believes this has useful applications in areas such as annuity portfolio construction, as well as pricing of volatility smoothing products aimed at the pensions market.