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Skating on thin ice: With-profits investment strategies need to consider climate-related risks and opportunities

With-profits regulations are lengthy, but the guiding principles can be paraphrased simply: run the fund well by securing good investment returns to provide fair, smoothed long-term returns for each generation of policyholders. A climate warming pathway will have severe macro-economic implications – interest rates, inflation, growth and so on are likely to be impacted. This in turn impacts the key assumptions that actuaries use to manage with-profits funds. If your investment portfolios do not yet include consideration of climate factors, could you be taking risks you do not understand?

Read the full article on the Actuary website.