A few errors have been spotted in the A311 course, a correction document is available on our website at https://acted.co.uk/south_africa.html . The document is near the bottom of the page accessed under the 'Corrections' heading.

thanks

Helen]]>

In some materials I have seen the best estimate basis described as having an equal probability of over or under-estimating the value of the liabilities. This suggests that given a distribution of liability values, we would take the median value.

In work context I feel like I have used a mean value for the best estimate (I could be wrong!) I also feel like I remember reading that the expectation (ie. mean) of the distribution is appropriate for best estimate.

In most circumstances these...

Best Estimate basis - Mean or median]]>

the mean residual life is given as 1 for the Exp(1) dist

and for Ga(2,1) it is 1 + 1/(x+1)

I understand that the exp dist is constant for the mean residual life

And for gamma it is a decreasing function of x

however I don’t understand why in this particular instance the solution says that the Ga distribution has a lighter tail than the exp dist

the mean residual life will decrease asymptotically towards 1 so it’s always above the mean residual life for...

X4 Assignment Q10 part 2]]>

I don’t understand why this would be. Could someone explain please?]]>

The purpose of this thread is for Subject SA1 students to discuss topical issues on health and care insurance. Feel free to add your own comments about topical issues.]]>

My understanding is that the assumptions used to calculate surrender value are most likely "realistic". As a results we do not need to use risk free rate as interest rate. We can use the yield from the assets backing the liabilities. The assets do...

SP2 2017 April Question 5 (ii)]]>

" the table shows the value added by sector asset alloc decisions"

in addition i dont get at which point we are asked to give both tables?

1st and 2nd bullet table 3 in solution

4th bullet 2nd table and answer 0.59

3rd bullet: 4th or 5th table?]]>

1. is it possible to explain me the steps using some example including "actual" cfs?

2. why chose to close out the position ?

thanks]]>

Can anyone please help me with the spectral density function, Inversion formula, Spectral density function for ARMA(p,q) and Linear filters given on Page 41 of Tables? I cannot find their detail explanation in core reading.

Also, how to find the number of cycles per unit time for given time series data set in R? So that I can use it for seasonal differencing

I tries to use spectrum function on ldeaths data set in R and got the following output:

View attachment 1323

I also used...

Spectral Density of Time Series]]>

i am reading some past papers and i see two "methods" for calculating the pv of floating payments in a swap.

Within the "quicker" method if the principal is L it says that we can say that it is L-L*Sumof Discount factors. Question 1: is this always the case irrespective of whether "I " pay the fixed or the floating leg?

Within an asset discussion (oct 2016 q5) it mentions

(Part 1)

that the swap value can be viewed as a FRN and fixed bond (so sth like Vswap=Vfixed-Vfloating)...

PV of floating rate payments]]>

using puttable swaps gives the pension fund managers the option to terminate any existing swap and enter a new one

so pension fund may purchase puttable bonds to stay flexible ; how this is deduced from the previous?

and later it mentions that if yield picks up is high; what dobwe mean here with yield? the yield of the bonds so if goes up the value of the fixed leg will go down? or the rate of the fixed leg ?or sth else?

thanks]]>

Some of the course materials suggest that Investment trust companies may be priced at a discount to their net asset value.

ie. (as I understand it) price of 100% of shares < Market value of assets - liabilities

In cases where this is true couldn't it become possible for a very wealthy individual to buy up all the shares and wind up the company to make a quick profit?

I understand that this won't be practical if the difference is small:

-There will be lots of dealing expenses....

ITC priced at discount to NAV?]]>

We've produced a document about topical issues and this is attached as a pdf. It provides a brief summary of a number of issues and weblinks to further sources of information.

Please use this thread to add any comments about topical issues and...

SA4 topical issues]]>

Have there been any changes to the CMP?

I have the 2019 CMP and wondering whether I should purchase the 2020 one.

Thanks]]>

Thanks,

A]]>

instead it writes 12%-12.85%.

i understand what these two % are but i dont understand how these compare with tje above that is used in other exercises.]]>

I would like to know whether there will be any significant changes in SP1, in terms of study material, syllabus & exam structure, as compared to current ST1?]]>