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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:

  • China         
  • France
  • Germany
  • Japan
  • United Kingdom
  • United States

You need to be logged in as a member to view the reports of each of these countries on this page.

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 2018 (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

For any library enquiries please contact:

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.

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Events calendar

  • Professional Skills Training - Edinburgh (22 Jan 19)

    IFoA (Edinburgh), Level 2, Exchange Crescent 7 Conference Square Edinburgh EH3 8RA
    22 January 2019

    Few spaces available

     

     

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2018/2019.  This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.

  • China New Year Member Event and Thank-you Party for Volunteers (Beijing & Shanghai & Shenzhen)

    Beijing Chinese address: 北京瑞吉酒店 记者俱乐部酒吧,朝阳区建国门外大街21号 English address: Press Club Bar, St Regis Hotel Beijing, No. 21 Jianguomenwai Street, Chaoyang District, Beijing Shanghai Chinese address:布朗石西班牙餐厅酒吧(96广场店),东方路796号九六广场1楼130单元 English address: Brownstone Tapas & Lounge (96 Plaza),  96 Plaza, F1, Room 130, No. 796 Dongfang Road Shenzhen Chinese address: 稻亭日本料理(购物公园店), 深圳市民田路购物公园北2楼206号 English address: Daoting Japanese Cuisine (Shopping Park), Room 206, No. 2 North  Building, Shopping Park, Mintian Road, Shenzhen
    22 January 2019 - 25 January 2019

    Spaces available

    The IFoA Beijing Office would like to invite our members in the region to join the New Year Member Event and Thank-you Party for Volunteers, to thank all our members and volunteers, to congratulate all the new qualifiers in the 2018 September exam session, and to celebrate the New Year and the Spring Festival! Food and drinks will be served. The IFoA CEO Mr Derek Cribb will also join the Beijing and Shanghai events.

  • KSS Event: How to be a High-Frequency Trader

    KPMG   Saltire Court 20 Castle Terrace Edinburgh EH1 2EG
    24 January 2019

    Spaces available

    This talk, which is based on interviews with 78 high-frequency traders (and other relevant people, such as those who supply them with information links), will ‘open the black box’ of HFT. The speaker will examine the main internal divide within HFT: between algorithms, trading groups and firms that specialise in ‘making’ (adding bids or offers to order books that cannot be executed immediately) and those that specialise in ‘taking’ (entering orders that can be executed immediately). 

  • Professional Skills Training event - Jointly organised by the IFoA and the Society of Actuaries of Thailand (SOAT)

    Ocean Life Insurance PCL, Meeting room 1, 24th Floor, 170/74-83 Ocean Tower 1 Building, Rachadapisek Road, Klongtoey, Bangkok 10110, Thailand We would like to thank Ocean Life Insurance PLC for sponsoring the venue  
    30 January 2019

    Spaces available

    Jointly organised by the IFoA and SOAT, this session held in Bangkok is suitable for actuaries working in any area (i.e. it is not specifically aimed at Life, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions. 

  • ARC Event on Periodical Payment Orders

    Staple Inn, High Holborn, London WC1V 7QJ
    20 February 2019

    Spaces available

    The IFoA’s Actuarial Research Centre (ARC) is convening a research event on the subject of Periodical Payment Orders (PPOs) in late February 2019.

  • IFRS17 Workshop, 21 February

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    21 February 2019

    Spaces available

    IFoA Logo for EventsThe Life Board and Life Lifelong Learning Sub-committee are running this half-day workshop on IFRS 17.

    They will provide a detailed understanding of the key concepts of the standard, as well as discuss how implementation will impact people, process and systems.  They will also share views on how the new standard will change the way insurers are viewed in the market, and share perspectives from within and outside of the profession.

     

  • Highlights of the Life Conference 2018 - London

    Ect Venues, 200 Aldersgate, St. Pauls, London EC1A 4HD
    5 March 2019

    Spaces available

    This event will cover the highlights from the Life Conference 2018 held in Liverpool. The Conference Committee are reviewing session feedback and will be putting together a high quality technical programme featuring the best sessions from the Life Conference 2018.  Book now to ensure your place.

  • Life and F&I One Day Workshop

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    11 March 2019

    Spaces available

    This is a cross practice life and F&I event offering high quality CPD in a series of presentations with time for Q&A after each, suitable for Life actuaries and those in finance and investments roles.

  • Sessional Meeting: Investment risk for long term investors - risk measurement approaches

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    18 March 2019

    Spaces available

    The term ‘investment risk’ is often used loosely, and frequently confused with the notion of short term price volatility, particularly for equity instruments. For the long term investor, however, what is most apposite is the ability to meet future real cash flows as they become due.

  • Highlights of the Life Conference 2018 - Edinburgh

    Apex Grassmarket Hotel, 31-35 Grassmarket, Edinburgh EH1 2HS
    19 March 2019

    Spaces available

    This event will cover the highlights from the Life Conference 2018 held in Liverpool. The Conference Committee are reviewing session feedback and will be putting together a high quality technical programme featuring the best sessions from the Life Conference 2018.  Book now to ensure your place.

  • Professional Skills Training - London (19 March 19)

    Staple Inn Hall, High Holborn London WC1V 7QJ
    19 March 2019

    Spaces available

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2018/2019.  This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.

  • KSS event - FinTech and The Actuarial Profession

    Barnett Waddingham 163 West George Street, Glasgow, G2 2JJ
    20 March 2019

    Spaces available

    This KSS talk from FinTech Scotland's CEO will explore the mission to create an integrated Fintech ecosystem through provision of funding, support, infrastructure and talent that recognises and responds to the needs of all stakeholders - and the overarching aim for Scotland to be one of the top 5 Fintech global leaders by 2020.

  • Professional Skills Training - Edinburgh (26 March 19)

    IFoA (Edinburgh), Level 2, Exchange Crescent 7 Conference Square Edinburgh EH3 8RA
    26 March 2019

    Spaces available

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2018/2019.  This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.

  • Professional Skills Training - London (16 April 19)

    Staple Inn Hall, High Holborn London WC1V 7QJ
    16 April 2019

    Spaces available

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2018/2019.  This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.

    Video case studies will be selected from the IFoA’s 20187/19 online content which covers a range of topics under an overarching theme of “Getting it right!”

  • Professional Skills Training - Edinburgh (30 April 19)

    IFoA (Edinburgh), Level 2, Exchange Crescent 7 Conference Square Edinburgh EH3 8RA
    30 April 2019

    Spaces available

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2018/2019.  This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.

  • IFoA Asia Conference 2019, Chengdu

    Crowne Plaza Chengdu Panda Garden, Poly Park 198, No. 1980 ShuLong Avenue,Xindu District, Chengdu 
    9 May 2019 - 10 May 2019

    Spaces available

    SAVE THE DATE

    The annual IFoA Asia conference is scheduled for 09 - 10 May 2019 in Chengdu, China.

  • CILA 2019

    30 Euston Square, London NW1 2FB
    14 May 2019

    Spaces available

    CILA is one of the pre-eminent events in the annual Life calendar. This event is one of the most popular in the Life area, often drawing over 200 delegates.  

  • Professional Skills Training - London (16 May 19)

    Staple Inn Hall, High Holborn London WC1V 7QJ
    16 May 2019

    Spaces available

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2018/2019.  This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.

  • Sessional Research Event - Saving for Retirement: Rules of Thumb

    Staple Inn Hall, High Holborn London WC1V 7QJ
    20 May 2019

    Spaces available

    How much does the average person need to save over a full working life to provide a decent retirement income? We call this the Lifetime Pension Contribution (LPC) and have attempted to quantify it. Discussing whether we have got it right is a valuable debate, touching on the anticipated level of retirement benefits, the required fund at retirement to achieve those benefits and how our conclusions fit with automatic enrolment. It is also closely related to the PLSA’s development of Retirement Income Targets.

  • Professional Skills Training - London (12 June 19)

    Staple Inn Hall, High Holborn London WC1V 7QJ
    12 June 2019

    Spaces available

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2018/2019.  This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.

  • Current Issues in General Insurance (CIGI) 2019

    Inmarsat, 99 City Road, London, EC1Y 1BJ
    19 June 2019

    Spaces available

    CIGI will provide an excellent and diverse line-up of speakers, each providing their insight and knowledge on a range of topics.  The programme will be broad in nature, so will be of most value to those with some experience in the industry. 

  • Professional Skills Training - London (25 June 19)

    Staple Inn Hall, High Holborn London WC1V 7QJ
    25 June 2019

    Spaces available

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2018/2019. This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.