Solving the “Nastiest, Hardest Problem in Finance”

By: AdvisorAnalyst | October 19, 2022
Originally featured in https://advisoranalyst.com/

Barry Gordon, Head of Canadian Retail Asset Management, Guardian Capital LP, and Dr. Moshe A. Milevsky, Ph.D., Professor at Schulich School of Business at York University join us to discuss how they went about solving what Nobel Laureate, William F. Sharpe, has described at the “nastiest, hardest problem in finance.”

Guardian Capital made quite a splash recently, announcing their partnership with Dr. Moshe Milevsky to develop a suite of retirement decumulation solutions, that are now available as securities for investment advisors to utilize, to address the quintessential “Retirement Dilemma,” which combine compelling income and growth strategies of targeted-yield and return asset decumulation, in what is definitively described as a ‘Modern Tontine.’

We are in the midst of what appears to be an historical regime change, following 40 years of declining government bond yields, into a new regime that won’t be as friendly to investors as the last, with historically very low, though rising, rates and inflationary volatility. Investors are facing what may be a very trying period for retirees, or those in pre-retirement, from a sequence of returns risk and market volatility perspective.

Highlights:

  • What was the genesis of GuardPath™ Longevity Solutions – when did you first realize this project needed to be brought to life?
  • How does the GuardPath™ Suite address these problems?
  • What is a Tontine? What is the origin of the Tontine?
  • The science of mortality credits or survivorship credits (monetizing mortality)
  • How does the decumulation strategy work? What can investors expect from the Managed Decumulation strategy?
  • Can the two main components of the GuardPath™ suite be used separately, or are they only intended to be implemented together?
  • How do you operationalize the complete modern tontine strategy?
  • What can the estates of investors/retirees expect from GuardPath™ in the event of death?
  • What happens if you live past the 20-year term?

 

Thank you for watching and listening.

For more on GuardPath™ Longevity Solutions, visit guardpath.ca

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