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Resources for Subject SA6 Investment

Suggested additional reading for Subject SA6 - Investment

Actuarial standardsArticles | Other papers | Books | Conference papers | Country reports | Journals | Newspapers and magazines | Background data | Glossary

The following additional resources will give you a different viewpoint on topics presented in SA6

You are not expected to have read all of the items but you should familiarise yourself with current investment issues and the general market background facing institutional investors in the 18 months preceding the examination session, together with the solutions (and background) being debated by the various stakeholders.

Actuarial Standards

The Institute and Faculty of Actuaries (IFoA) is responsible for the setting of ethical actuarial standards. The Financial Reporting Council (FRC) is responsible for the setting of technical actuarial standards. The guidance listed here is referred to is the SA6 Core Reading but does not necessarily represent the current position.

Technical actuarial standards can be found on the FRC's website

Download additional helpful guidance material about the TASs.

The Panel on Takeovers and Mergers

Economist Intelligence Unit: Country reports  (Background for SA6 Unit 7)

The Economist Intelligence Unit provides leading country analysis and forecasts. IFoA members get access to detailed economic and political forecasts compiled by a wide network of on the ground contributors and highly skilled analysts on behalf of the EIU. Reports are available for the following countries:

The reports are for the latest month only. Reports are for non-commercial educational use by members of the Institute and Faculty of Actuaries.  The terms and conditions of supply are at http://www.eiu.com/public/terms.aspx This arrangement is managed by the library service, please email libraries@actuaries.org.uk with any enquiries.

The Economist: The World in 2017 (Background for SA6 Units 7, 13)

Sources on recent world and regional trends affecting investment The Economist's annual survey for the year ahead offers points of interest and background to support study of investment issues, its outlook from last year can be considered in retrospect too. The Economist now makes this annual print magazine available as an ‘App’ for purchasers, but selected articles of the latest edition are available at http://www.theworldin.com/

Articles and papers

Presented research meeting papers, Staple Inn Actuarial Society (SIAS) papers and journal articles:
(Papers shown below with Annuals of Actuarial Science or British Actuarial Journal reference have title links to their original sessional meeting paper document on this website. Members who login to the IFoA website can then access the final published article along with reported contributions from the discussion in the British Actuarial Journal).

Other papers

Books

Some of the books below are not available on-line but you may request to borrow them from: libraries@actuaries.org.uk or via title links below to book details on the IFoA Library catalogue:

Conference papers

Listed below are selected papers of most relevance to Units in SA6 Core Reading with others suggested for background information:

2001 Finance and Investment Conference. Faculty of Actuaries and Institute of Actuaries. 2001

2005 Finance and Investment Conference. Faculty of Actuaries and Institute of Actuaries. 2006

2006 Finance, Investment and Risk Management Conference. Faculty of Actuaries and Institute of Actuaries. 2006

Most relevant papers include:

2008 Finance, Investment and Risk Management Conference. Faculty of Actuaries and Institute of Actuaries, 2008

Click here and scroll down to Finance, Investment and Risk conference. Most relevant papers include:

2011 Risk and Investment Conference. Institute and Faculty of Actuaries. 2011

Click here and scroll down to Risk and Investment conference.

2012 Risk and Investment Conference. Institute and Faculty of Actuaries. 2012

Click here and scroll down to Risk and Investment conference.

2013 Risk and Investment Conference. Institute and Faculty of Actuaries. 2013

Click here and scroll down to Risk and Investment conference. Most relevant papers include:

2013 Momentum Conference. Institute and Faculty of Actuaries. 2013

2014 Risk and Investment Conference. Institute and Faculty of Actuaries. 2014

Click here and scroll down to Risk and Investment conference. Most relevant papers include:

2015 Risk and Investment ConferenceInstitute and Faculty of Actuaries, 2015

Click here and scroll down to Risk and Investment conference. Most relevant papers include:

2016 Risk and Investment ConferenceInstitute and Faculty of Actuaries, 2016

Click here and scroll down to Risk and Investment conference. Most relevant papers include:

 

Journals 

You can access the following journals via the Athens portal. Contact the libraries for a login:

  • Journal of Risk and Insurance (Wiley Online library)
  • Journal of Risk Management in Financial Institutions (METAPRESS)
  • Risk Management and Insurance Review (Wiley Online library).

Newspapers and magazines

Background data

Glossary

Term Definition
Asset share The retrospective accumulation of past premiums, less expenses and the cost of cover, at the actual rate of return on the assets.
Attribution analysis Splitting a fund manager's performance into stock selection and sector selection (and sometimes into more sub-divisions of these)
Basis trading (cash and carry trade) An arbitrage position typically comprising a long cash position together with a short position in its respective futures contract, whereby the cash price plus the cost of carry of the underlying position is lower than the futures price. By convention, buying the basis is to buy cash bonds and sell futures, and selling the basis is to sell cash bonds and buy futures.
Bear spread (vertical spread) An option strategy combining the purchase and sale of two puts (bear put spread) or two calls (bear call spread) with different strikes on the same underlying asset.
Bull spread  Where the investor takes a bullish (optimistic) view a similar option strategy is called a bull spread using two puts (bull put spread) or two calls (bull call spread)
Butterfly An option strategy involving the purchase of one put (or call), the sale of two puts (or calls) at a higher exercise price, and purchasing one put (or call) at an equally higher price.
Calendar spread

A calendar spread is created by selling a call option with a certain exercise price and buying a longer maturity call option with the same exercise price.

Alternatively a put option can be sold while simultaneously buying a longer maturity put with the same exercise price.

Cash equivalent The value of benefits accrued by a member of a pension scheme. Used for cash equivalent transfer values and pension sharing orders
Diagonal spread A diagonal spread involves buying one option and selling another (both calls or both puts) where both the maturity and the exercise prices are different (cf bull, bear and calendar spreads)
Group of 7 (G7) International finance ministers from seven industrialised nations who attempt to influence economic and monetary policies through co-ordinated actions. (Since 2002, the Group of 8 (G8) as Russia joined the original seven members)
Health and care insurance Critical illness, income protection, long-term care, major medical and private medical insurances, plus health cash plans.
Pecuniary reward Payment in the form of money
Prime A classification of borrowers, rates or holdings in the lending market that are considered to be of high quality and the most creditworthy.
Program trade A procedure where trades are automatically generated by a computer and transmitted to the trading floor of an exchange.
R&D

Research and Development. The pursuit and adoption of new technology and technological change leading to process innovation and product development.

Securities fund The term applied by the FSA to an authorised unit trust fund which consists of 'transferable' securities such as equities, bonds, debentures, loan stock, government and public sector loan stock and bonds.
Sponsoring employer The particular participating employer in a pension scheme in which is vested special powers or duties in relation to such matters as the appointment of trustees, payments of contributions, amendments to scheme rules and winding-up.
Spread trade The purchase of one futures contract and the simultaneous sale of another in order to take advantage of relative price changes. Examples include buying one futures contract and selling another futures contract of the same underlying asset but different delivery month; buying a given delivery month of one futures contract and selling the same delivery month of a different, but related, futures contract.
Straddle An option strategy involving one call and one put with the same strike price and same expiry date.
Strangle An option strategy involving one call and one put with different strike levels but with the same expiry date.
Strap A strap consists of a long position in two calls and one put with the same exercise price and expiry date (cf strip)
Strip A combination of two puts and a call with the same exercise price.
Sub-prime A type of loan which is offered at a rate above prime to individuals who do not qualify for prime-rate loans (including those who may have had a history of prior loan delinquency or default)
Takeover Where one business acquires another. If this does not involve mutual agreement between the two parties, the takeover might be viewed as "hostile".
Technical provisions The actuary's assessment, on scheme-specific funding assumptions determined by the trustees, of the amount required to meet the scheme's liabilities as they fall due. The amount that an insurance company would have to pay in order to transfer its obligations immediately to another insurance company. Valuation of liabilities (and assets) on market consistent principles.
Vertical spread See bear spread.
Warrant fund The term applied by the FSA to an authorised unit trust fund which may consist of warrants as well as transferable securities.

Additional glossaries

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Contact Details

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libraries@actuaries.org.uk

We try to respond to email queries within one working day. Researcher access to historical resources may require notice in advance of visit in order to retrieve items from storage.