www.the-actuary.org.ukassumption that an actuary can add value in an investment context but I do think that the techniques and thought processes that actuaries possess are useful in the investment world. The key is in educating professionals in the investment community about what contributions actuaries can make.In a multi-manager context, actuaries can bring greater sophistication to the risk management and risk analysis of hedge funds, though they are sure to find themselves in competition with many financial economists obsessed with the subject.Many actuaries do have investment consulting experience and will be familiar with some of the issues involved in manager selection in a multi-manager context. That said, a traditional actuarial consultant8217s approach to advising on manager selection can be quite different to one of managing money on a discretionary basis.What about hedge funds?Asset-backed securities and CDOs are structures that actuaries should be able to model using traditional and more sophisticated actuarial techniques.Many other such modelling opportunities exist within hedge funds in all sorts of different strategies. As an example, actuaries may have a valuable role to play in the analysis of investments for insurance companies, given their unique understanding of these institutions. The same is true in many takeover situations, where pension liabilities and the interaction of pension trustees and the corporation can be critical factors in determining the viability of a proposed mergers and acquisition transaction.AGBInvestment actuaries187 There is no such thing as a perfectly efficient market, yet neither (or very seldom) is there a risk-free arbitrage 171 March 2008 33MatBlas.indd 114/2/08 10:14:16187 This article is one of a series promoted by the Actuarial Profession8217s Action Group for Banking (AGB) and explores situations where the actuarial and banking worlds overlap to the benefit of both sectors. The articles serve the following broad purposes:Push: To demonstrate where actuarial skills and thinking have been applied in a banking or financial context to add real commercial value.Pull: To highlight tools and skills available in banking and finance that may be of use to traditional life and pensions actuaries.Please contact Mark Symons mark.symons@actuaries.org.uk for more information on the AGB8217s activities.Find out moreExternal Actuarial ValuationsExactVALoffers pension consultancies thefacility to outsource their valuation work.8226We specialise in completing the numbers sideof actuarial valuations for defined benefit pension schemes.8226We use an experienced team, together with bespoke software (Superval)to turn work around efficiently.8226We present our results in a clear, auditable and consistent format.8226Our prices are fixed in advance for each valuation, and are extremely competitive.8226We also offer valuation-oriented trainingaimed at staff with varying levels of experience.For more details, visit our websitewww.exactval.co.ukor call Bill Harrison01727 830462Company reg no: 6004085Registered office: Linksview, Everlasting Lane, St Albans, Herts, AL3 5RY 8226 GB1867 EXACTVAL Advert 16/11/07 9:24 am Page 1032_033_Actuary_Guthrie_0308.ind33 3319/2/08 16:41:11
Page 1Page 2Page 3Page 4Page 5Page 6Page 7Page 8Page 9Page 10Page 11Page 12Page 13Page 14Page 15Page 16Page 17Page 18Page 19Page 20Page 21Page 22Page 23Page 24Page 25Page 26Page 27Page 28Page 29Page 30Page 31Page 32Page 33Page 34Page 35Page 36Page 37Page 38Page 39Page 40Page 41Page 42Page 43Page 44Page 45Page 46Page 47Page 48Page 49Page 50Page 51Page 52Page 53Page 54Page 55Page 56Page 57Page 58Page 59Page 60Page 61Page 62Page 63Page 64Page 65Page 66Page 67Page 68Page 69Page 70Page 71Page 72Page 73Page 74Page 75Page 76 Produced by PageSuite