Guideline 24. Investment reporting

Submitted by Anonymous (not verified) on Tue, 07/10/2018 - 09:46

The actuary inputs into the investment reporting process to ensure that information disclosed is accurate and presented in an appropriate way. The actuary also provides input into the decision-making process in respect of what information to disclose.

With increasing scrutiny of social security institutions’ investment practices, clear and understandable reporting is essential. This guideline should be read together with Part D of these Guidelines and the Guidelines on Communication by Social Security Administrations.

Guideline code

ACT_02700

Mechanism

The information disclosed may include:

Total value of assets split by asset class;
Changes in asset value over the year split by source of return;
Assessment of risk over the measurement period, split where possible by source of risk;
Performance (real and nominal) of each asset class over the year;
Income generated from assets during the year;
Expenses relating to investment management;
Valuation method and assumptions used (where relevant);
Returns credited to provident funds or defined contribution accounts where relevant;
Other information where appropriate.

The actuary may advise what information should not be disclosed and for what reasons (for example, if the information is market-sensitive).
The actuary should work with other stakeholders where appropriate.
Where actuarial involvement in the investment process covers multiples aspects (e.g. costing of benefits, projected benefit calculations, supervision, etc.), it should be ensured that all relevant reporting is mutually consistent in nature, form, assumptions used and frequency.

Parent

C. Investment Issues

Structure

Principles

The actuary should provide input into what information should be disclosed and in what form. Information provided should add to public understanding of how the social security institution manages assets.
An actuary may be involved in the provision of information for the report. If this is the case, a proper peer review process is required to ensure the information is accurate, up to date and relevant.
Investment information provided should be consistent with other communications provided by the social security institution, in particular any benefit statements provided to beneficiaries but also annual reports and information on benefit factors and projected benefits.

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