Summary
Implication: 1.A shortfall is expected to affect 90% of ALL PLANS!!! 2.The Major Consideration - forceable entry of Companies/Firms ti INJECT more CASH. A drain on a Critical Asset of any Institution! 3.Alternatively - Reduce Investment Risk. An achievable option , which should be exercised!!! 4.An injection of more Cash is , only , a stop-gap measure.Risk aversion is the answer for a Long - Term Solution. 5.Yields and Stock Market returns should have been avoided by Sound Financial Management not Policymaking! 6.The matching of assets and liabilities should, indeed, follow a straight line with a minimum of deviation. The answer lies in the consistent monitoring of ALL Variables to the equation. A single variable is likely to lead to this exposure.
Analysis
Commentary:
1.The propensity for Risk Aversion rather than an effective Investment Fund Asset Allocation displays a "dismal" performance and could have been avoided!
2."Ineffective "regulation if Financial Institutions in the UK May have been a contributing factor and could have been avoided.
3." Perverse Incentives" For those managing other people's money
requires a Higher Standard than the norm.
4.Measuement Criteria - (A) Accountability, (B) consistent evaluation of asset performance and, (C) Assurance that a particular Financial posture is SUSTAINABLE is imperative for success!
5.There is no need to add a levy on Pensions as the final result is NOT likely to be favorable!!!!!
