Boiling Frog Syndrome

An investment paradigm? It is a well-established characteristic of the lovable, tailless amphibian – the frog – that it struggles to detect subtle changes in the temperature of the water in which it resides. If you place a frog into a pot of boiling water  (not something that we would encourage!), it will instinctively jump…

“Torque Fill” for pension schemes

So the Formula 1 season is well underway and this season offers a glimmer of hope for fans of McLaren. McLaren have a long and successful history, but they haven’t fared so well in recent years (not unlike UK DB schemes).  Some have attributed this lack of competitiveness in recent seasons to concentrating on building…

How useful are probabilities?

From Portfolio Institutional: Every defined benefit pension scheme has an eighty percent chance of being fully funded ten years from now. Exactly eighty percent. Prove me wrong. That sounds ridiculous, but over the time horizons involved, there is no way of calculating that probability that can be shown to be any more accurate. So are…

The queue for equity protection is out of the door. Or is it?

For those that work in London, the lunchtime sandwich rush will be all too familiar. The best places are always queuing out of the door, wasting valuable minutes of a lunch “break” – this can put many people off. The other day we were out picking up our lunch just before 12 – we were…

To sell or not to sell

“To sell, or not to sell, that is the question: Whether ’tis nobler in the mind to suffer The slings and arrows of outrageous equity markets Or to take arms against a sea of troubles, And by avoiding them: To sell, to worry No more; and by a worry to say we end The heartache,…

“In a crowded hall, exit doors are small… ”

This recent RBS research piece (and summary articles in the Guardian and Telegraph) has caught people’s attention; I overheard it mentioned in the coffee queue and on the tube this morning, and it’s certainly been a hot topic of discussion in the team.  It cites a number of reasons why investors should be cautious in…