Howwow Online: Revisiting risk with Rory Percival - 30 October 2017

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edited October 2017 in Our news
Back by popular demand, Rory Percival will be answering your questions on risk profiling in October's Howwow. Join us on Monday 30 October, at 1pm for this hour-long online chat with Rory. All you need to do is book your spot here. 

Comments

  • AdminAdmin Administrator
    The replay is now available here. 
  • On the area of Capacity for Loss I am interested in what others are using to assess capacity for loss. By this I mean the event, not cash flow model, discussion etc.

    Are you using a one off capital loss (not recovered)? If so, when is this loss to occur?

    Are you using a one off capital loss (in investment markets) which then recovers? Again, when is the loss to occur and what recovery period?

    If loss / recovery does anyone consider long term investors will experience a number of these over 30 or 40 years. If so do you model these loss / recoveries on a recurring basis?
  • amarshallamarshall Member, Moderator
    On the area of Capacity for Loss I am interested in what others are using to assess capacity for loss. By this I mean the event, not cash flow model, discussion etc.

    Are you using a one off capital loss (not recovered)? If so, when is this loss to occur?

    Are you using a one off capital loss (in investment markets) which then recovers? Again, when is the loss to occur and what recovery period?

    If loss / recovery does anyone consider long term investors will experience a number of these over 30 or 40 years. If so do you model these loss / recoveries on a recurring basis?
    We use market performance data for a 5 year period as our "adverse market event" in Voyant. We have taken data from FE Analytics and created a standard event that can be dropped in with ease.

    When building our presentations, we always include showing how our good Voyant outcomes (ie scenarios where we've used some planning) would be affected by our adverse market event. How many we put in depends on the duration of the cashflow but we try to keep them to a frequency of 10 years with the first occuring pretty soon in the cashflow.

    This can lead to things looking pretty bleak but we find it very useful for clients to see how it compares to the perfect scenario of the same return, consistently acheived year in, year out.
  • amarshallamarshall Member, Moderator
    Big Chief said:
    The replay is now available here. 
    Thanks @richallum I found it very useful and will share this around the office.

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