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The Actuary The magazine of the Institute & Faculty of Actuaries
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Plus minus plus

I think the reference by Redington to plus minus plus can be related back to his contribution to the debate on Springbett’s paper (1964) in the context of the management of a long-term fund. What he said was that a fund whose annual net cashflows were alternately positive and negative was much more resilient to changes in interest rates than one which where the cashflows were negative (or positive) for a significant span of years.

Hardly rocket science but 1964 was when Facits and Munros were the only calculation devices available and 2001 was not even a Space Odyssey.