Liability Driven Investment

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.