The aim of the paper is to discuss some of the problems relating to unit trusts and to the issue of annual premium endowment assurance policies with benefits linked to unit trusts or equities.

SECTION I describes the background to unit trust operations including the main requirements for Board of Trade authorization.

SECTION II analyses expenses of administration and patterns of expense loadings. It compares the traditional life assurance approach to expense loadings and normal unit trust practice.

SECTION III describes the main broad types of assurance linked to unit trusts or equities now in force. It discusses the organizational and taxation considerations involved in issuing such contracts and the desirability of doing so.

This paper is concerned with the value of ordinary shares to permanent investors whose capital will never be required for any purpose other than investment in stock exchange securites. After tracing the history of ordinary shares over the past forty years, the paper examines methods of valuation which have been suggested by others and in particular extends and attempts to justify one which has been found useful in practice. The qualitative factors to be taken into account in arriving at the valuation are then considered and the paper closes with an expression of hope that more information will be provided, by researchers and others, on these factors in the future.

The paper outlines a system for processing the data of a life office to make efficient use of men and of machines available at the present time. The conditions to be met by an electronic computer and the persons responsible for its operation (systems analysts, programmers and operators) are first considered. The mechanical and manual aspects of the system are then dealt with in turn. After an outline of the problems involved in the institution of the system, the financial and other benefits to be expected are estimated in the light of the experience so far gained. Finally, a brief look is taken at the way in which developments may proceed in the future.

1. One of the reasons often advanced for the installation of a computer is that, in addition to carrying out existing processes more speedily, it will make available information and analysis previously unobtainable because of the weight of calculation and data processing involved. It is therefore appropriate that at this stage some thought should be given to the end-product and basis of various actuarial investigations to see whether the advent of new tools and techniques can be harnessed to improve the quality of the results of the investigations normally carried out by actuaries. One starting point for such research is a consideration of the defects (if any) in the form and basis of existing investigations. The first part of this note deals with possible lines of research in the field of life office valuation, surplus and new business investigations. It does not pretend to be comprehensive nor does it claim that the questions posed are the best questions or that a solution exists.

Social security in the United Kingdom is at a crossroads. Should it become more selective, and if so, what form should the selectivity take ? Should the traditional methods of finance be changed ? What is to be done about the pockets of poverty which still exist ?

Occupational pension schemes, too, are coming increasingly under public scrutiny. Are they fulfilling their role adequately ? In what ways do they need to be improved ?

The Government is expected to announce next year its proposals for a new State pension scheme. These seem likely to include a change in the financing of National Insurance benefits generally. They may contain features which could set the State scheme and occupational schemes on a collision course.

The paper examines some of the issues involved and indicates lines along which future developments might take place. It concludes by describing a way in which State and occupational schemes could continue to work in partnership.

The paper sets out to develop a method for measuring the effect which changes in capital value of securities may have on premiums and asset shares. It is shown that any such method will involve an assumption as to allocation of assets to particular sections of business, and to particular policies within those sections of business. Different approaches to the allocation of assets are discussed as a preliminary to the development of formulae which take account of changes in capital value of both fixed interest stocks and equities.

Examples are given to illustrate the accumulation of asset shares in funds of different composition under varying investment conditions, on the basis of a “unit trust” approach to the allocation of assets.

The paper concludes with some comments on surplus distribution under individual and group with-profits policies.