We are pleased to announce the CFA Institute Research Foundation has published
Tontines: A Practitioner’s Guide to Mortality-Pooled Investments, a first of its kind primer for investment practitioners on the subject of tontine portfolios. Many thanks to the Foundation for funding this research brief.
Available at/on:
Table of Contents:
Preface
Acknowledgements
What Is a Tontine?
Why Study Tontines?
Longevity-Risk Pooling
A (Very) Brief History of Tontines
Are Tontines Legal?
Literature
The Fair Tontine Principle
Fair vs. Equitable
Mortality Rates
Forfeiture Allocation
Risk Pool Ownership Constraint
Tontines Compared with Traditional Investment Portfolios
Tontines Compared with Income Annuities
Tontine Payouts
Structured Payouts
Tontine Accounting Illustrated
Tontine Structures
Additional Topics
Conclusion
References