volume 1, issue 3, P471-557 1995
DOI: 10.1017/s1357321700001203
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A.C.L. Dyson, C.J. Exley

Abstract: The theoretical basis for, and practical application of, the discounted income method for valuing U.K. pension fund assets is discussed with particular reference to the widely adopted application to variable income (equity type) assets, as proposed by Day & McKelvey (1964), in the context of both the management and compliance objectives of pension fund valuation. An alternative methodology is proposed in which consistency with assets, liabilities, and market values is demanded, with smoothing of the valuation…

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