Investment Publications: Patrick Collins et al.

A list of published articles on the topics of Asset Management, Trustee duties in portfolio design, monitoring and surveillance, Family Trust, Longevity Risk and Retirement Income Planning.   A Risk Primer for Investment Fiduciaries (with special attention to the management of endowment funds) – Patrick J. Collins, Ph.D., CLU, CFA, California Trusts and Estates Quarterly… Read more »

Annuities and Retirement Income Planning

Although academic studies evaluate the optimality of annuities, advisers assess solutions in terms of contracts governed by insurance carrier profit objectives, tax code provisions, and regulatory restrictions. A variety of annuities exist and, for each type, there is substantial heterogeneity of contract provisions. Practitioners may benefit from an overview of the US annuity marketplace with… Read more »

Actuarial Publications: Patrick Collins et al.

A list of published articles on the topics of Life Insurance and Annuities, Irrevocable Life Insurance Trusts and Fiduciary liability for insurance transactions and policy management.   Asset Allocation, Human Capital, and the Demand to Hold Life Insurance in Retirement – Patrick J. Collins, Ph.D., CLU, CFA, and Huy Lam, CFA, Financial Services Review, (Winter,… Read more »

Prudence

The paper begins with a brief recap of recent fiduciary surcharge cases in which defendants were found in breach of their duties because of failure to establish a credible basis upon which to exercise investment discretion. In several cases, the lack of a well-articulated, fully documented, and suitable investment strategy was, in itself, found to… Read more »

Black Swans and Albino Crows – Trustee Communication

Large declines in stock prices are not rare events.  Investors assuming that the distribution of asset price changes conforms to the well-known “normal distribution” [Gaussian distribution], however, may be startled by the frequency and magnitude of asset price declines. This essay compares the historical behavior of stock price movements to the behavior that the normal… Read more »

Well-Performing Portfolios and Well-Disguised Insolvency

A bear market puts a premium on a trustee’s ability to discharge effectively the duty to monitor the trust portfolio in terms of its ability to discharge Settlor objectives and to meet beneficiary expectations.  Although portfolio performance communication often consists of either merely reporting returns relative to a benchmark, or of providing lengthy transaction histories,… Read more »

Managing Retirement Portfolio Withdrawals in Turbulent Times: Precautionary Savings, Investment Reserves, and Mid-Term Adjustments

Investors withdrawing money from their portfolios are often concerned about the probability of ruin, where ruin is defined as the depletion of the portfolio prior either to a fixed date, or to a random date such as the end of retirement (i.e., the end of a lifetime). Investors worry about a portfolio’s ability to support… Read more »

When Every Choice Is Bad

Successfully managing a modest-sized family trust portfolio during a bear market can be difficult when the trust is making distributions. Both personal and corporate trustees face the task of providing adequate and sustainable cash flow to the current beneficiary from a diminishing pool of capital and meeting obligations to remaindermen. Although bear market environments generally… Read more »

Without More: Trust Investment Manager Selection and Retention Policy

Selecting actively managed investment strategies for all, or a portion, of trust assets can be difficult. Herein we describe the process of identifying superior active managers, and metrics fiduciaries could use to document the prudence of their manager selection process. Abstract: This article, published in the Banking Law Journal, addresses issues that trustees (and other fiduciaries) of foundations… Read more »