What next for liability-driven investment?

Charlotte Moore says the path forward will vary depending on scheme circumstances

clock • 7 min read
What schemes do next will depend on the impact of interest rate movements and hedging on their funding status and asset allocation
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What schemes do next will depend on the impact of interest rate movements and hedging on their funding status and asset allocation

Gilt markets have calmed now Rishi Sunak has become prime minister and Liz Truss’ economic policies have been reversed. This allows scheme trustees, their advisors and liability-driven investment (LDI) managers to take stock. As the dust settles, it’s possible to discern what schemes will do next.

XPS Pensions Group investment partner Adam Gillespie says: "Most schemes have done everything they can to pay the collateral calls and keep their hedging in place." Not every scheme will, however, ...

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