Academics at Cass Business School say they have devised an approach to valuing funding levels in defined benefit (DB) pension funds by adding investment risk to the discount rate.Cass said corporate sponsors were misleading investors and pension fund members by failing to value their pension funds and portray financial risks accurately.Supported by the University of Melbourne’s Joanchim Inkmann and Zhen Shi, professor David Blake, director at the Cass Pensions Institute, proposed an asset/liability model using a “funding risk-adjusted discount rate” and asset allocation to match.Blake said this should help corporate-scheme stakeholders, giving members and investors greater insight on “true valuations”. “Our approach also increases transparency for the sponsoring company,” he said.“Its shareholders are now better able to plan for future contributions into the pension schemes and value the sponsoring company more accurately.“A revision to the accounting standards that report the valuation of corporate defined benefit obligations is a clear policy implication from our analysis.”The new asset/liability model aims to paint a more accurate picture of risk within a pension fund by accounting for liabilities that are consistent with asset allocation.Cass said its new model differed from the current system, where liabilities and investments of assets are treated separately.In a paper entitled ‘Managing Financially Distressed Pension Plans in the Interest of Beneficiaries’, the authors argue that liabilities must be valued using a discount rate that actually reflects a scheme and its sponsor’s funding ability.And this, they say, depends on asset allocation.“We cannot value the pension obligation without knowing the strategic asset allocation policy of the pension plan,” the academics write.“What we are proposing is nothing less than a fully integrated asset-liability management solution for pension plans.“The ability of schemes and sponsors to fund pension promises depends on the future values of assets, which themselves depend on the current strategic asset allocation.“Thus, funding spreads that appropriately reflect funding risk depend on the chosen asset allocation.”
PORT AU PRINCE, Haiti, CMC – A sitting of the Senate called to ratify the appointment of Prime Minister Fritz William Michel was adjourned Monday after Senator Jean-Marie Ralph Fethière fired gunshots to defend himself against demonstrators who had entered the legislative compound.“I defended myself. Self-defense is a sacred right,” said Senator Fethière after firing the shots into the crown.A photojournalist with the Associated Press was among two people wounded when the legislator fired his gun in the yard of the Haitian Senate. According to The Guardian, the photojournalist Chery Dieu-Nalio was shot in the face and the second man, Leon Leblanc, a security guard and driver, was also injured was also severely wounded.Local media reports said that journalist, who was covering the Senate sitting, was hit and Senator Patrice Dumont told the radio station, Vision2000, the shots were fired by Fethière and were not aimed at the journalist and a security guard who had been assigned to the Parliament.Following the shooting, the Senate was adjourned “sine die” meaning that it had been adjourned with no specific date for its resumption.This is the second time in as many weeks that the Senate had been adjourned without a specific date for its resumption.Before the shooting incident, Senate President Carl Murat Cantave had complained on radio that the scene had turned chaotic.He also accused the Haiti National Police (PNH) of not from preventing individuals he described as “thugs” from accessing the Senate yard.The Senate president said that the “thugs” had been invited by opposition legislators intent on preventing the ratification vote.Earlier this month, the Chamber of Deputies gave Michel the green light even as opposition legislators sought to disrupt the proceedings.When the vote was taken late last Tuesday, 76 deputies voted for Prime Minister Michel’s policy, three abstained, and none voted against.But last Wednesday, dozens of armed protesters posing as “political activists” took a stand around the parliament despite the security measures deployed by the police and many of them made their way into the building breaking everything in their path.Last month, President Jovenel Moise had called on Parliament to approve the nomination and government of Prime Minister Michel, describing him as “a brilliant civil servant who has devoted his entire career to serving the people of Haiti”.Michel, a former executive in the Ministry of Economy and Finance, became the fourth prime minister of Haiti since President Moise became the head of state in 2017.
Savio (left) has been at Villa since July (File Photo)SC Villa defender Savio Kabugo has completed a move to DR Congo defending league Champions AS Vita.Savio has been at Villa for just months after joining the record Uganda Premier League Champions from Proline FC in July, but has been injured for the better part of the season.He is believed to have undergone a three weeks trial at Vita and news coming from DRC indicates that he has passed with flying colours hence sealing the move.Savio whose dream looked to have come to an end at struggling SC Villa finally uplifted it again by making such a move to play international football.He was at Proline FC last season under the guide-ship of Mujib Kasule before they got relegated back to the Big League.The Ugandan Defender is most remebered for his strike that sunk Ghana in the 2014 AFCON Qualifiers at Mandela National Stadium, Namboole.Savio has passed through clubs like SC Victoria University, URA FC, KCCA FC, Proline FC and lastly the Uganda record Champions SC Villa.He becomes the second Ugandan to feature for Vita after compatriot Yunus Ssentamu who plied for AS Vita in 2014 taking the club to the finals of CAF Champions League.He now joins Ugandan Joseph Ochaya who plies his trade for TP Mazembe in the same League.Comments Tags: AS Vitasavio kabugoSC Villa