Results of : What was the return on invested assets in the largest captive you know about in 2003?
Total votes: 0
 
Less than 3 percent 0.00% (0)

 
3 - 4 percent 0.00% (0)

 
4 - 5 percent 0.00% (0)

 
More than 5 percent 0.00% (0)

 

Claude Parenteau; Parenteau Associates
Answer: A – In the case of money market funds, returns for the year 2003 were perhaps between 50-90 basis points. For actively managed fixed-income portfolios, investment management returns would have been in the 2%-3% range. Given that the current yield on 3-year duration U.S. Treasury instruments is around 2% right now, returns above this level for 2003 would suggest that higher levels of hidden risk were being taken in the investment portfolio, even though this higher risk may not have revealed itself in actual losses for the year.

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