The benefits of trend-following as schemes approach endgame

Harry Moore and Rupert Goodall say the strategy can be instrumental in overcoming DB challenges

clock • 6 min read
Rupert Goodall and Harry Moore of Man AHL
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Rupert Goodall and Harry Moore of Man AHL

It can be reasoned the recent collapse of Silicon Valley Bank and the crisis in the UK liability-driven investment (LDI) market were both the victims of market fragility induced by an unprecedented campaign of monetary tightening which has defined much of the last year and resulted in simultaneous selloffs across all major asset classes.

Navigating such market conditions is essential for institutional investors who must generate a return to keep up with their liabilities. In particular, many defined benefit (DB) schemes are now on ...

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