Sanlam Allianz Holdings (kenya) Plc · NSEKE:SLAM
Sanlam Allianz Holdings (kenya) — Sanlam — Sanlam Institutional Insights (September 2014)
15 slides from Sanlam Allianz Holdings (kenya)'s conference presentation, September 2014
Slide 1: Challenges Trends Opportunities
Challenges Trends Opportunities Institutiona Insights @ Sanilam
Slide 2: Welcome: retirement is…(dead?) ahead
welcome retirement is…(dead?) ahead Michael S. Falk, CFA, CRC September 2014
Slide 3: retirement is…(dead?) ahead
retirement is…(dead?) ahead 3
Slide 4: dead (?) only if…
dead (7?) only if... oo 99.9 99.91 99.97 995 99.64 = 100+ 98 4 99.5 99.6 c §S 90-4 85.9 5 80+ = my § 607 £ 504 8 404 2 204 27.5 S s0- 17.1 2 wm 1°07 4.25 | Oe ae — aoe —._§—_ FE 3 § 5 8 5 - S 3 E $s =) > s 2 r=) - 2 = D> BS @ & g# ££ 2 €& = 6 2 3 [4 = Effective consent rates, by country. Explicit co
Slide 5: who among us… Homo Economicus?
who among us… … Is Homo Economicus? … and not Homer Economicus? 5
Slide 6: (U.S.) retirement overconfidence
(U.S.) retirement overconfidence • Having enough for retirement, worker confidence is 55% • Of those, 18% were very confident; however • 15% were not saving • 23% had < $50k saved • 39% had never estimated how much they will need • Of the non-savers, 26% were confident • 57% expect a (private) pensi
Slide 7: Design success…
Design success… Leverage Defaults 1. 0%, 3% or How much – to start vs. overtime? 2. Life Cycle or Active Balanced (LCvAB) 3. The BIG challenge: Accumulation versus Lifetime Income (DAvLI) 7
Slide 8: savings is NOT natural
savings is NOT natural 0%, 3% or ?% Participation & Escalation defaults overcome: • Status Quo bias • Hyperbolic discounting • Self-Control bias 8
Slide 9: NOT everyone has the… time, desire or existing knowledge
NOT everyone has the… time, desire or existing knowledge LCvAB Professional portfolio management avoids (?): • Loss Aversion • Recency bias / Regret bias • Choice Overload 9
Slide 10: NORMATIVE!
NORMATIVE! Figure 1: Expected Financial Capital and Human Capital over Lifetime * Dollars $ Retirement Date Human Capital An individual's ability to earn and save money which diminishes over time. Financial Capital An individual's total saved assets.
Slide 11: Positive please!
Positive please! “Changing the asset allocation in a portfolio solely on the basis of the member’s age is complete nonsense… there is no correlation between the age of a pension plan member and how the market behaves.” • Normative needs • Savings or a strong, sustainable safety net (SSSS) • Lucky bi
Slide 12: when & why (to buy or not to buy)
when & why (to buy or not to buy) 12
Slide 13: the big challenge… LI?
the big challenge… LI? DAvLI • Income ≠ accumulation • Pooling risks offers 20%+ • But, but… ? • 50-year + contracts • SSSS issues • Portability problems • … It’s personal! 13
Slide 14: Michael Falk, CFA, CRC speaker biography
Michael Falk, CFA, CRC is a partner with the Focus Consulting Group • and a partner and the chief strategist for Mauka Capital, LLC a global macro limited partnership. Formerly, he was the CIO in charge of manager due diligence and asset allocation for a multi-billion dollar advisory. His background
Slide 15: Wealthsmiths
© Sanlam Wealthsmiths”
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