Schemes are becoming cashflow negative at a time they can ill-afford any drag on investment returns. Sorca Kelly-Scholte and Maria Ryan look at solutions to this Catch-22
Structural imbalances in the gilts market have worsened since the central bank's QE programme faced major setbacks. Supply is squeezed and prices are distorted, pushing down yields yet again. Stephanie Baxter asks if we should be worried.
While LDI has been a helpful risk management tool it must adapt to a world where yields have yet again fallen to record lows and prospects for growth assets have deteriorated. Stephanie Baxter reports
The amount of hedged defined benefit (DB) liabilities grew to £741bn by the end of 2015 according to KPMG.
Mitigating the impact of central clearing
BMO Global Asset Management has made two appointments to its liability-driven investment (LDI) team as the firm expects strong growth in the business.
Interest rate and inflation hedging activity dropped by 24% and 27% respectively in the third quarter, according to BMO Global Asset Management's liability-driven investment (LDI) survey.
Individual annuity sales at Legal and General (L&G) have fallen by more than half this year, and its bulk annuity business has failed to pick up the slack, figures show.
LDI has been a helpful tool for schemes looking to de-risk. But does the emerging use of illiquid assets mean LDI could become a hindrance to achieving buyout? Stephanie Baxter investigates.
UK pension schemes hedged a record £13.9bn of inflation risk in the first quarter of the year, according to research from F&C.
Listen to our latest Pensions Conjecture debate on Liability Driven Investment
A 90% surge in interest rate hedging and a 14% increase in inflation hedging drove the value of scheme liabilities hedged in the third quarter of the year above £22bn, research shows.
A new paper by Con Keating, head of research at Brighton Rock Group, called into question the validity of liability driven investing. But industry experts believe LDI, while not perfect, is one of the best solutions pension funds have. Iain Morse reports...
UK - Liability-driven investment is "fundamentally misconceived" because it hedges low interest rates which in fact increase corporate profitability, a radical report finds.
Liability-driven investment is "fundamentally misconceived" because it hedges low interest rates which in fact increase corporate profitability, a radical report finds.
Legal & General Investment Management has launched a pooled fund platform that offers pension schemes a flexible version of liability-driven investment.
UK - The £240bn ($390bn) liability-driven investment market is developing into an "oligopoly" with just three providers managing more than 80% of assets, research finds.
The £650m Lloyd's Register Superannuation Fund Association is to undertake a wholesale review of its investment strategy and mandates.
Schroders has launched five synthetic gilt funds to hedge against interest and inflation risk as it seeks to push further into the growing liability-driven investment market.
New York Life Investments has launched the Guaranteed Interest Pension Account (GPA) to help corporate plans better manage their near-term liabilities.
Interest rate hedges by pension funds fell by 24% over the first quarter of the year, hit by a difficult swap market and stale funding levels, F&C reports.
UK - The £8.5bn ($13.6bn) Aviva Staff Pension Scheme is looking to increase its allocations to real estate related assets to 15% over the next two years as it looks for long-term, liability matching assets.
CANADA - Staff at the Healthcare of Ontario Pension Plan (HOOPP) could soon be compensated for how well they match liabilities.
US - The number of new mandates placed by US institutional investors increased 16% in 2010 with a sharp increase seen in specialist mandates like real assets, commodities and other alternatives.