• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Aggregate asset share

B

Benjamin

Member
Hi,

Ref: CMP, Ch20, p.17

The core reading says that the term aggregate asset share can be used to refer to AS "...for specified product lines or for the whole with-profits portfolio."

It then says "This term may also be used to describe the sum of the individual assets shares."

Are these two things not synonymous? When would the sum of the individual asset shares not equal the asset shares of the portfolio?
 
Hi,

Ref: CMP, Ch20, p.17

The core reading says that the term aggregate asset share can be used to refer to AS "...for specified product lines or for the whole with-profits portfolio."

It then says "This term may also be used to describe the sum of the individual assets shares."

Are these two things not synonymous? When would the sum of the individual asset shares not equal the asset shares of the portfolio?
There will be very little difference between the asset share of a cohort and the sum of the individual asset shares. However, we might have some small differences. For example, in a recent thread we discussed using smoothed mortality rates to calculate assets shares - we might used smoothed rates for individual asset shares, but use the actual rates for the cohort asset shares.

Best wishes

Mark
 
There will be very little difference between the asset share of a cohort and the sum of the individual asset shares. However, we might have some small differences. For example, in a recent thread we discussed using smoothed mortality rates to calculate assets shares - we might used smoothed rates for individual asset shares, but use the actual rates for the cohort asset shares.

Best wishes

Mark

Mark, is it correct to assume that each company would be required to calculate two sets of asset shares, one would be smoothed and one would be unsmoothed? The unsmoothed is always required to check the COBS 20 requirement for percentage of payouts around the 100% of unsmoothed asset share, whereas the smoothed asset share would be the one used for determining policyholder payouts and all the good stuff as per the application/ use of the asset share in the core reading?
 
Mark, is it correct to assume that each company would be required to calculate two sets of asset shares, one would be smoothed and one would be unsmoothed? The unsmoothed is always required to check the COBS 20 requirement for percentage of payouts around the 100% of unsmoothed asset share, whereas the smoothed asset share would be the one used for determining policyholder payouts and all the good stuff as per the application/ use of the asset share in the core reading?
I wouldn't go as far to say that it is a requirement. But yes, certainly many companies will find it useful to calculate both a smoothed and unsmoothed asset share.

Best wishes

Mark
 
I wouldn't go as far to say that it is a requirement. But yes, certainly many companies will find it useful to calculate both a smoothed and unsmoothed asset share.

Best wishes

Mark

Thank you - very helpful.
 
Back
Top