Professional Pensions www.professionalpensions.com The changing environment for larger DB schemes: Part 2 <img alt="The changing environment for larger DB schemes: Part 2" src="https://www.professionalpensions.com/api/v1/wps/f27fbd1/f1be5586-f8d0-40ec-aa04-7aacb42f0197/4/Group-shot-Pro-Pensions-Russell-Invest-347-185x114.jpg" /> <p><!--summary start--> At the beginning of April last year, Professional Pensions assembled a panel of experts to discuss some of the challenges larger defined benefit (DB) schemes were facing and how they were looking to address them. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/f27fbd1/f1be5586-f8d0-40ec-aa04-7aacb42f0197/4/Group-shot-Pro-Pensions-Russell-Invest-347-185x114.jpg https://www.professionalpensions.com/sponsored/4170466/changing-environment-larger-db-schemes https://www.professionalpensions.com/sponsored/4170466/changing-environment-larger-db-schemes https://www.professionalpensions.com/sponsored/4170466/changing-environment-larger-db-schemes Tue, 6 Feb 2024 14:57:06 +0000 Partner Insight: Is LDI even needed anymore? <img alt="Partner Insight: Is LDI even needed anymore?" src="https://www.professionalpensions.com/api/v1/wps/b6b254f/f1a42710-feb8-4c57-a02d-4048dae25a2b/13/Partner-Insight-Do-schemes-even-need-leverage-anymore-185x114.png" /> <p><!--summary start--> <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/b6b254f/f1a42710-feb8-4c57-a02d-4048dae25a2b/13/Partner-Insight-Do-schemes-even-need-leverage-anymore-185x114.png https://www.professionalpensions.com/sponsored/4142894/invesco-iv-pp-ldi-anymore https://www.professionalpensions.com/sponsored/4142894/invesco-iv-pp-ldi-anymore https://www.professionalpensions.com/sponsored/4142894/invesco-iv-pp-ldi-anymore Wed, 8 Nov 2023 13:25:46 +0000 Automated stress testing after periods of volatility needed <img alt="Automated stress testing after periods of volatility needed" src="https://www.professionalpensions.com/api/v1/wps/b4bef25/054c1183-e033-4766-a8cb-15f8ad0b2565/2/Ladha-Nadeem-2020-Trustees-2021-185x114.jpg" /> <p><!--summary start--> Stress testing after periods of volatility following events such as the recent liability-driven investment (LDI) crisis in pensions is crucial, industry experts say. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/b4bef25/054c1183-e033-4766-a8cb-15f8ad0b2565/2/Ladha-Nadeem-2020-Trustees-2021-185x114.jpg https://www.professionalpensions.com/news/4117428/automated-stress-testing-periods-volatility https://www.professionalpensions.com/news/4117428/automated-stress-testing-periods-volatility https://www.professionalpensions.com/news/4117428/automated-stress-testing-periods-volatility Wed, 7 Jun 2023 13:30:34 +0000 The changing environment for larger DB schemes <img alt="The changing environment for larger DB schemes" src="https://www.professionalpensions.com/api/v1/wps/7012010/9718a348-3551-405d-86e4-1ca84e4cacd7/9/Russell-Investments-PP-Breakfast-185x114.jpg" /> <p><!--summary start--> At the beginning of April, Professional Pensions assembled a panel of experts to discuss some of the challenges larger defined benefit (DB) schemes are currently facing and how they are looking to address them. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/7012010/9718a348-3551-405d-86e4-1ca84e4cacd7/9/Russell-Investments-PP-Breakfast-185x114.jpg https://www.professionalpensions.com/sponsored/4116972/db-schemes-roundtable https://www.professionalpensions.com/sponsored/4116972/db-schemes-roundtable https://www.professionalpensions.com/sponsored/4116972/db-schemes-roundtable Mon, 5 Jun 2023 08:00:20 +0000 TPR and FCA publish guidance on LDI <img alt="TPR and FCA publish guidance on LDI" src="https://www.professionalpensions.com/api/v1/wps/7b74322/c4b4d84c-fca8-4c79-9661-27fc9ba20bd0/6/Davey-Louise-TPR-2023-185x114.jpg" /> <p><!--summary start--> The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) have published guidance on liability-driven investments (LDI). <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/7b74322/c4b4d84c-fca8-4c79-9661-27fc9ba20bd0/6/Davey-Louise-TPR-2023-185x114.jpg https://www.professionalpensions.com/news/4112689/tpr-fca-publish-guidance-ldi https://www.professionalpensions.com/news/4112689/tpr-fca-publish-guidance-ldi https://www.professionalpensions.com/news/4112689/tpr-fca-publish-guidance-ldi Mon, 24 Apr 2023 12:29:13 +0000 The systemic risk being created by LDI managers <img alt="The systemic risk being created by LDI managers" src="https://www.professionalpensions.com/api/v1/wps/4fa395f/f048cd4b-efda-4912-8a2f-3fe7e035bb38/2/Hans-Stoter-185x114.jpg" /> <p><!--summary start--> The fallout from the gilt crisis following September’s ill-fated Mini Budget – particularly the impact on liability-driven investment (LDI) – has adopted almost soap-opera status in the last few months, with new revelations still coming to light. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/4fa395f/f048cd4b-efda-4912-8a2f-3fe7e035bb38/2/Hans-Stoter-185x114.jpg https://www.professionalpensions.com/opinion/4111883/systemic-risk-created-ldi-managers https://www.professionalpensions.com/opinion/4111883/systemic-risk-created-ldi-managers https://www.professionalpensions.com/opinion/4111883/systemic-risk-created-ldi-managers Tue, 11 Apr 2023 09:00:00 +0000 The 'devil will be in the detail' of BofE LDI buffer recommendation <img alt="The &#39;devil will be in the detail&#39; of BofE LDI buffer recommendation " src="https://www.professionalpensions.com/api/v1/wps/8bc762e/42eaf2d8-8b45-475c-9080-2259718b76b5/5/Willis-Simeon-XPS-Pensions-Group-roi-1-185x114.jpg" /> <p><!--summary start--> The ‘devil will be in the detail’ of the Bank of England’s (BofE) buffer recommendations for liability-driven investment (LDI) funds and mandates, the industry says. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/8bc762e/42eaf2d8-8b45-475c-9080-2259718b76b5/5/Willis-Simeon-XPS-Pensions-Group-roi-1-185x114.jpg https://www.professionalpensions.com/news/4089247/‘devil-bofe-ldi-buffer-recommendation https://www.professionalpensions.com/news/4089247/‘devil-bofe-ldi-buffer-recommendation https://www.professionalpensions.com/news/4089247/‘devil-bofe-ldi-buffer-recommendation Wed, 29 Mar 2023 14:33:10 +0000 Fiduciary management after a period of market crisis <img alt="Fiduciary management after a period of market crisis" src="https://www.professionalpensions.com/api/v1/wps/4ec80fb/b2fcbe6d-8716-4b7a-9dee-8b7ab8d2c345/7/SEI-breakfast-Jan23-069-185x114.jpg" /> <p><!--summary start--> In January 2023, Professional Pensions held a roundtable to reflect on the aftermath of the market turbulence last year and ask what the impact of the liability-driven investment (LDI) crisis has been for fiduciary managers and the broader industry. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/4ec80fb/b2fcbe6d-8716-4b7a-9dee-8b7ab8d2c345/7/SEI-breakfast-Jan23-069-185x114.jpg https://www.professionalpensions.com/sponsored/4076901/fiduciary-management-market-crisis https://www.professionalpensions.com/sponsored/4076901/fiduciary-management-market-crisis https://www.professionalpensions.com/sponsored/4076901/fiduciary-management-market-crisis Tue, 7 Mar 2023 11:00:38 +0000 Most schemes to target lower return objectives for longer <img alt="Most schemes to target lower return objectives for longer" src="https://www.professionalpensions.com/api/v1/wps/1f6d990/74c72842-5b2b-4d7d-bc35-107353c50650/4/Investment-185x114.jpg" /> <p><!--summary start--> Most schemes are expected to have ‘lower for longer’ return objectives in 2023, according to a survey by the Pensions Management Institute (PMI) and Schroders. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/1f6d990/74c72842-5b2b-4d7d-bc35-107353c50650/4/Investment-185x114.jpg https://www.professionalpensions.com/news/4074516/most-schemes-target-lower-return-objectives https://www.professionalpensions.com/news/4074516/most-schemes-target-lower-return-objectives https://www.professionalpensions.com/news/4074516/most-schemes-target-lower-return-objectives Wed, 15 Feb 2023 14:48:56 +0000 XPS launches liability-driven investment oversight service <img alt="XPS launches liability-driven investment oversight service" src="https://www.professionalpensions.com/api/v1/wps/42e82e6/24c52912-938d-457c-924b-b5336f800593/3/Gold-Ben-Xafinity-Punter-Southall-roi-1-185x114.jpeg" /> <p><!--summary start--> XPS Pensions Group has launched a liability-driven investment (LDI) oversight service after finding significant differences in how LDI managers fared during the gilts crisis in Autumn last year. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/42e82e6/24c52912-938d-457c-924b-b5336f800593/3/Gold-Ben-Xafinity-Punter-Southall-roi-1-185x114.jpeg https://www.professionalpensions.com/news/4074044/xps-launches-liability-driven-investment-oversight-service https://www.professionalpensions.com/news/4074044/xps-launches-liability-driven-investment-oversight-service https://www.professionalpensions.com/news/4074044/xps-launches-liability-driven-investment-oversight-service Tue, 7 Feb 2023 10:31:32 +0000 Investment consultants must be regulated 'as matter of urgency' after LDI crisis <img alt="Investment consultants must be regulated &#39;as matter of urgency&#39; after LDI crisis" src="https://www.professionalpensions.com/api/v1/wps/1774294/782d9e2a-e52f-4056-bb5c-844b377600a3/9/Hollick-Lord-Clive-2023-new-roi-1-185x114.jpg" /> <p><!--summary start--> The government should ensure that investment consultants are brought within the regulatory perimeter “as a matter of urgency”, a House of Lords committee says. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/1774294/782d9e2a-e52f-4056-bb5c-844b377600a3/9/Hollick-Lord-Clive-2023-new-roi-1-185x114.jpg https://www.professionalpensions.com/news/4074036/investment-consultants-regulated-‘-matter-urgency-ldi-crisis https://www.professionalpensions.com/news/4074036/investment-consultants-regulated-‘-matter-urgency-ldi-crisis https://www.professionalpensions.com/news/4074036/investment-consultants-regulated-‘-matter-urgency-ldi-crisis Tue, 7 Feb 2023 10:07:37 +0000 BoE: Pooled funds key cause of LDI market turmoil <img alt="BoE: Pooled funds key cause of LDI market turmoil " src="https://www.professionalpensions.com/api/v1/wps/8bf7c6b/bb225c9a-e866-49dd-b2a4-062db2d335b8/2/Breedon-Sarah-WPC-185x114.jpg" /> <p><!--summary start--> The operational and governance complexities of recapitalizing pooled funds were a primary driver of the liability-driven investment (LDI) market crisis last year, the Work and Pensions Committee (WPC) has heard. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/8bf7c6b/bb225c9a-e866-49dd-b2a4-062db2d335b8/2/Breedon-Sarah-WPC-185x114.jpg https://www.professionalpensions.com/news/4073426/boe-pooled-funds-key-cause-ldi-market-turmoil https://www.professionalpensions.com/news/4073426/boe-pooled-funds-key-cause-ldi-market-turmoil https://www.professionalpensions.com/news/4073426/boe-pooled-funds-key-cause-ldi-market-turmoil Wed, 1 Feb 2023 15:09:51 +0000 Systemic risk of strategy alignment caused LDI crisis, committee hears <img alt="Systemic risk of strategy alignment caused LDI crisis, committee hears" src="https://www.professionalpensions.com/api/v1/wps/621f200/84fca56a-b694-424f-afbc-0f4fb505ecc8/15/Nangle-Toby-WPC-roi-1-185x114.jpg" /> <p><!--summary start--> The systematic risk of pension funds all investing in similar liability-driven investment (LDI) strategies was the cause of last year’s crisis in markets, the Work and Pensions Committee (WPC) has heard. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/621f200/84fca56a-b694-424f-afbc-0f4fb505ecc8/15/Nangle-Toby-WPC-roi-1-185x114.jpg https://www.professionalpensions.com/news/4073385/systemic-risk-strategy-alignment-caused-ldi-crisis-committee-hears https://www.professionalpensions.com/news/4073385/systemic-risk-strategy-alignment-caused-ldi-crisis-committee-hears https://www.professionalpensions.com/news/4073385/systemic-risk-strategy-alignment-caused-ldi-crisis-committee-hears Wed, 1 Feb 2023 10:51:59 +0000 Re-evaluating investment strategy following the Mini Budget crisis <img alt="Re-evaluating investment strategy following the Mini Budget crisis" src="https://www.professionalpensions.com/api/v1/wps/6176567/fa58502d-1ad4-4f94-9880-e24d1e902764/9/CTI-Roundtable-Nov22-185x114.jpg" /> <p><!--summary start--> At the beginning of November last year, Professional Pensions assembled a panel of experts to discuss the fallout for pension schemes from September’s Mini Budget. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/6176567/fa58502d-1ad4-4f94-9880-e24d1e902764/9/CTI-Roundtable-Nov22-185x114.jpg https://www.professionalpensions.com/sponsored/4062491/cti-mini-budget-roundtable https://www.professionalpensions.com/sponsored/4062491/cti-mini-budget-roundtable https://www.professionalpensions.com/sponsored/4062491/cti-mini-budget-roundtable Tue, 17 Jan 2023 11:23:25 +0000 Legal Review: Who is to blame for the LDI crisis and where are the possible claims <img alt="Legal Review: Who is to blame for the LDI crisis and where are the possible claims " src="https://www.professionalpensions.com/api/v1/wps/7001d75/6b7dd8aa-0589-4374-9fb9-3c1f5fc28b66/4/Edwards-Earl-Chris-Stephenson-Harwood-2022-roi-1-185x114.jpg" /> <p><!--summary start--> As most of the nation tries to forget the market chaos of the end of September 2022, the pensions industry is continuing to analyse what happened. There is plenty of blame to go around and no shortage of finger pointing. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/7001d75/6b7dd8aa-0589-4374-9fb9-3c1f5fc28b66/4/Edwards-Earl-Chris-Stephenson-Harwood-2022-roi-1-185x114.jpg https://www.professionalpensions.com/feature/4061652/legal-review-blame-ldi-crisis-claims https://www.professionalpensions.com/feature/4061652/legal-review-blame-ldi-crisis-claims https://www.professionalpensions.com/feature/4061652/legal-review-blame-ldi-crisis-claims Wed, 14 Dec 2022 13:36:02 +0000 TPR says there is 'strong case' for professional trustee authorisation <img alt="TPR says there is &#39;strong case&#39; for professional trustee authorisation" src="https://www.professionalpensions.com/api/v1/wps/94a9436/cf3fa7e2-ab3f-477a-88c1-fc0e8f87ae3a/8/Counsell-Charles-The-Pensions-Regulator-TPR-185x114.jpg" /> <p><!--summary start--> The Pensions Regulator (TPR) has called for increased regulation for superfunds and defined benefit (DB) master trusts and says there is a “strong case” for an authorisation regime to be introduced for professional trustees. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/94a9436/cf3fa7e2-ab3f-477a-88c1-fc0e8f87ae3a/8/Counsell-Charles-The-Pensions-Regulator-TPR-185x114.jpg https://www.professionalpensions.com/news/4061626/tpr-‘strong-case-professional-trustee-authorisation https://www.professionalpensions.com/news/4061626/tpr-‘strong-case-professional-trustee-authorisation https://www.professionalpensions.com/news/4061626/tpr-‘strong-case-professional-trustee-authorisation Wed, 14 Dec 2022 11:12:20 +0000 BoE recommends further regulatory action on LDI <img alt="BoE recommends further regulatory action on LDI" src="https://www.professionalpensions.com/api/v1/wps/5983b54/800c7b96-094b-4f01-bf27-c664e09a7469/7/bank-of-england-2018-007-185x114.jpg" /> <p><!--summary start--> Regulatory action should be taken by The Pensions Regulator (TPR), in co-ordination with the Financial Conduct Authority and overseas regulators, to improve the resilience of liability-driven investment (LDI) funds, the Bank of England’s Financial Policy Committee (FPC) says. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/5983b54/800c7b96-094b-4f01-bf27-c664e09a7469/7/bank-of-england-2018-007-185x114.jpg https://www.professionalpensions.com/news/4061583/boe-recommends-regulatory-action-ldi https://www.professionalpensions.com/news/4061583/boe-recommends-regulatory-action-ldi https://www.professionalpensions.com/news/4061583/boe-recommends-regulatory-action-ldi Tue, 13 Dec 2022 13:24:10 +0000 Leveraged LDI saved schemes billions, committee hears <img alt="Leveraged LDI saved schemes billions, committee hears" src="https://www.professionalpensions.com/api/v1/wps/8e59426/71ec7188-bf7c-4cb3-943f-629bf6aca977/4/Rosenberg-Kerrin-Cardano-185x114.jpg" /> <p><!--summary start--> Leveraged liability-driven investment (LDI) strategies have made defined benefit schemes billions of pounds better off, the Work and Pensions Committee (WPC) has heard. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/8e59426/71ec7188-bf7c-4cb3-943f-629bf6aca977/4/Rosenberg-Kerrin-Cardano-185x114.jpg https://www.professionalpensions.com/news/4061364/leveraged-ldi-saved-schemes-billions-committee-hears https://www.professionalpensions.com/news/4061364/leveraged-ldi-saved-schemes-billions-committee-hears https://www.professionalpensions.com/news/4061364/leveraged-ldi-saved-schemes-billions-committee-hears Wed, 7 Dec 2022 15:55:02 +0000 Trustee understanding a key issue in LDI crisis, WPC told <img alt="Trustee understanding a key issue in LDI crisis, WPC told" src="https://www.professionalpensions.com/api/v1/wps/3a8e257/a84e9d1c-002e-445a-a5be-6e9370b41020/5/Fogarty-roi-1-185x114.png" /> <p><!--summary start--> There is a “reasonably strong argument” that trustees should be regulated in order to improve their capability and understanding, the Work and Pensions Committee (WPC) has heard. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/3a8e257/a84e9d1c-002e-445a-a5be-6e9370b41020/5/Fogarty-roi-1-185x114.png https://www.professionalpensions.com/news/4061324/trustee-understanding-key-issue-ldi-crisis-wpc-told https://www.professionalpensions.com/news/4061324/trustee-understanding-key-issue-ldi-crisis-wpc-told https://www.professionalpensions.com/news/4061324/trustee-understanding-key-issue-ldi-crisis-wpc-told Wed, 7 Dec 2022 11:21:56 +0000 WPC inquiry hears calls for LDI leverage constraints <img alt="WPC inquiry hears calls for LDI leverage constraints" src="https://www.professionalpensions.com/api/v1/wps/1c77712/9813be25-5704-4f7f-adab-f9d95ad19ddf/2/Camfield-Jonathan-LCP-roi-1-185x114.jpg" /> <p><!--summary start--> Regulators should introduce greater guidance around the amount of leverage allowed in liability-driven investment (LDI) portfolios to stop “competitive pressures” ratcheting up the levels of systemic risk in schemes once again. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/1c77712/9813be25-5704-4f7f-adab-f9d95ad19ddf/2/Camfield-Jonathan-LCP-roi-1-185x114.jpg https://www.professionalpensions.com/news/4060694/wpc-inquiry-hears-calls-ldi-leverage-constraints https://www.professionalpensions.com/news/4060694/wpc-inquiry-hears-calls-ldi-leverage-constraints https://www.professionalpensions.com/news/4060694/wpc-inquiry-hears-calls-ldi-leverage-constraints Wed, 23 Nov 2022 15:13:43 +0000 'Hidden leverage' to blame for LDI crisis, WPC told <img alt="&#39;Hidden leverage&#39; to blame for LDI crisis, WPC told" src="https://www.professionalpensions.com/api/v1/wps/1a662ae/6e9fc5a1-530d-49eb-a637-72550934e03e/1/keating-con-185x114.png" /> <p><!--summary start--> “Hidden leverage” was the cause of the “entirely predictable” liability-driven investment (LDI) crisis of the past two months, a Work and Pensions Committee (WPC) inquiry has been told. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/1a662ae/6e9fc5a1-530d-49eb-a637-72550934e03e/1/keating-con-185x114.png https://www.professionalpensions.com/news/4060665/hidden-leverage-blame-ldi-crisis-wpc-told https://www.professionalpensions.com/news/4060665/hidden-leverage-blame-ldi-crisis-wpc-told https://www.professionalpensions.com/news/4060665/hidden-leverage-blame-ldi-crisis-wpc-told Wed, 23 Nov 2022 10:47:12 +0000 ACA calls for 'evolution' of LDI after market challenges <img alt="ACA calls for &#39;evolution&#39; of LDI after market challenges" src="https://www.professionalpensions.com/api/v1/wps/ddf674a/06bb6cc3-62fd-419f-b361-262e19ed1188/1/Taylor-Steven-ACA-185x114.jpg" /> <p><!--summary start--> Liability-driven investment (LDI) remains fit for purpose but there will be changes in operational arrangements such as standard minimum levels of collateral going forward, the Association of Consulting Actuaries (ACA) says. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/ddf674a/06bb6cc3-62fd-419f-b361-262e19ed1188/1/Taylor-Steven-ACA-185x114.jpg https://www.professionalpensions.com/news/4060316/aca-calls-‘evolution-ldi-market-challenges https://www.professionalpensions.com/news/4060316/aca-calls-‘evolution-ldi-market-challenges https://www.professionalpensions.com/news/4060316/aca-calls-‘evolution-ldi-market-challenges Wed, 16 Nov 2022 15:22:26 +0000 What next for liability-driven investment? <img alt="What next for liability-driven investment?" src="https://www.professionalpensions.com/api/v1/wps/019559f/8c766f96-dd10-4599-93c1-52257bfaa748/0/iStock-1207136850-185x114.jpg" /> <p><!--summary start--> 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. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/019559f/8c766f96-dd10-4599-93c1-52257bfaa748/0/iStock-1207136850-185x114.jpg https://www.professionalpensions.com/feature/4060225/liability-driven-investment https://www.professionalpensions.com/feature/4060225/liability-driven-investment https://www.professionalpensions.com/feature/4060225/liability-driven-investment Wed, 16 Nov 2022 10:02:47 +0000 BoE: Mini budget-induced LDI crisis was 'full scale liquidation event' <img alt="BoE: Mini budget-induced LDI crisis was &#39;full scale liquidation event&#39;" src="https://www.professionalpensions.com/api/v1/wps/f1e32fe/f3ea7027-e212-49b2-a1ce-20922999ae2e/4/bank-of-england-2018-006-185x114.jpg" /> <p><!--summary start--> The unprecedented collateral calls pension funds had to meet for their liability-driven investment (LDI) portfolios in the wake of last month’s mini budget represented a “full scale liquidation event”, the Bank of England says. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/f1e32fe/f3ea7027-e212-49b2-a1ce-20922999ae2e/4/bank-of-england-2018-006-185x114.jpg https://www.professionalpensions.com/news/4058496/boe-mini-budget-induced-ldi-crisis-scale-liquidation-event https://www.professionalpensions.com/news/4058496/boe-mini-budget-induced-ldi-crisis-scale-liquidation-event https://www.professionalpensions.com/news/4058496/boe-mini-budget-induced-ldi-crisis-scale-liquidation-event Wed, 19 Oct 2022 16:00:21 +0000 Trustees must avoid 'following advice' explanation of LDI strategy usage <img alt="Trustees must avoid &#39;following advice&#39; explanation of LDI strategy usage" src="https://www.professionalpensions.com/api/v1/wps/1acc8b9/eedb8f3f-0125-4e90-bf0d-312925133626/4/Foster-Patrick-Lexington-2020-roi-2-185x114.jpg" /> <p><!--summary start--> Every so often, the relatively sedate world of defined benefit (DB) pensions is propelled up the political and media agenda, out of the trade publications and business sections, and onto the front pages of national newspapers. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/1acc8b9/eedb8f3f-0125-4e90-bf0d-312925133626/4/Foster-Patrick-Lexington-2020-roi-2-185x114.jpg https://www.professionalpensions.com/opinion/4057897/trustees-avoid-‘following-advice-explanation-ldi-strategy-usage https://www.professionalpensions.com/opinion/4057897/trustees-avoid-‘following-advice-explanation-ldi-strategy-usage https://www.professionalpensions.com/opinion/4057897/trustees-avoid-‘following-advice-explanation-ldi-strategy-usage Wed, 12 Oct 2022 13:16:12 +0000 PLSA: BoE action should not be ended too soon <img alt="PLSA: BoE action should not be ended too soon" src="https://www.professionalpensions.com/api/v1/wps/3dd0b4f/90eb7443-8fcc-4fe4-9142-37bd27e1fe99/10/Mund-Julian-PLSA-Annual-Conference-2019-edited-version-1-185x114.jpeg" /> <p><!--summary start--> The Pensions and Lifetime Savings Association (PLSA) has backed the Bank of England’s (BoE) continued steps to ensure the orderly operation of the gilt market but warned against the purchasing action being ended too soon. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/3dd0b4f/90eb7443-8fcc-4fe4-9142-37bd27e1fe99/10/Mund-Julian-PLSA-Annual-Conference-2019-edited-version-1-185x114.jpeg https://www.professionalpensions.com/news/4057859/plsa-boe-action-soon https://www.professionalpensions.com/news/4057859/plsa-boe-action-soon https://www.professionalpensions.com/news/4057859/plsa-boe-action-soon Tue, 11 Oct 2022 09:54:24 +0000 BoE widens gilt purchase operations to include index-linked gilts <img alt="BoE widens gilt purchase operations to include index-linked gilts" src="https://www.professionalpensions.com/api/v1/wps/478512b/57551bbd-7756-4d46-bcfa-0252dfea8da0/3/bank-of-england-2-185x114.jpg" /> <p><!--summary start--> The Bank of England (BoE) has announced it will widen the scope of its daily gilt purchase operations to include purchases of index-linked gilts. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/478512b/57551bbd-7756-4d46-bcfa-0252dfea8da0/3/bank-of-england-2-185x114.jpg https://www.professionalpensions.com/news/4057845/boe-widens-gilt-purchase-operations-index-linked-gilts https://www.professionalpensions.com/news/4057845/boe-widens-gilt-purchase-operations-index-linked-gilts https://www.professionalpensions.com/news/4057845/boe-widens-gilt-purchase-operations-index-linked-gilts Tue, 11 Oct 2022 07:45:06 +0000 Bank of England says lessons must be learned from LDI crisis <img alt="Bank of England says lessons must be learned from LDI crisis" src="https://www.professionalpensions.com/api/v1/wps/37b77b3/57551bbd-7756-4d46-bcfa-0252dfea8da0/4/bank-of-england-2-185x114.jpg" /> <p><!--summary start--> The Bank of England’s deputy governor for financial stability has said it is important that lessons are learned from last week’s liability-driven investment (LDI) crisis - warning a large number of pooled LDI funds would have fallen into "negative net asset value" if the bank had not intervened. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/37b77b3/57551bbd-7756-4d46-bcfa-0252dfea8da0/4/bank-of-england-2-185x114.jpg https://www.professionalpensions.com/news/4057656/bank-england-lessons-learned-ldi-crisis https://www.professionalpensions.com/news/4057656/bank-england-lessons-learned-ldi-crisis https://www.professionalpensions.com/news/4057656/bank-england-lessons-learned-ldi-crisis Fri, 7 Oct 2022 13:10:21 +0000 LDI leverage cuts will push schemes to choose less hedging or lower returns <img alt="LDI leverage cuts will push schemes to choose less hedging or lower returns" src="https://www.professionalpensions.com/api/v1/wps/a0a4799/68755efa-f422-4085-ad08-558234c531ce/6/Punwani-Aaron-LCP-New-rgb-185x114.png" /> <p><!--summary start--> The time limited intervention by the Bank of England (BoE) restored orderly functioning to the gilt market last week, but even in the short term, who can confidently predict what’s going to happen on 14 October when the bank has signalled it will withdraw its support? <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/a0a4799/68755efa-f422-4085-ad08-558234c531ce/6/Punwani-Aaron-LCP-New-rgb-185x114.png https://www.professionalpensions.com/opinion/4057639/ldi-leverage-cuts-push-schemes-choose-hedging-lower-returns https://www.professionalpensions.com/opinion/4057639/ldi-leverage-cuts-push-schemes-choose-hedging-lower-returns https://www.professionalpensions.com/opinion/4057639/ldi-leverage-cuts-push-schemes-choose-hedging-lower-returns Thu, 6 Oct 2022 14:11:43 +0000 The global financial crisis was a 'walk in the park' in comparison to last week <img alt="The global financial crisis was a &#39;walk in the park&#39; in comparison to last week" src="https://www.professionalpensions.com/api/v1/wps/b26106d/fa3b870e-8dee-4061-8162-3b6a31f8ad36/3/shares-185x114.jpg" /> <p><!--summary start--> Last week was one of the most turbulent ever for those managing UK pension schemes. In this article, one fiduciary manager talks about his experience of the past seven days. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/b26106d/fa3b870e-8dee-4061-8162-3b6a31f8ad36/3/shares-185x114.jpg https://www.professionalpensions.com/opinion/4057341/global-financial-crisis-‘walk-park-comparison-last https://www.professionalpensions.com/opinion/4057341/global-financial-crisis-‘walk-park-comparison-last https://www.professionalpensions.com/opinion/4057341/global-financial-crisis-‘walk-park-comparison-last Mon, 3 Oct 2022 10:02:52 +0000 How the pensions industry dealt with the LDI crisis <img alt="How the pensions industry dealt with the LDI crisis" src="https://www.professionalpensions.com/api/v1/wps/19675ea/a9263bbe-828d-4806-8718-b4a5a6a2169d/6/Rosenberg-Kerrin-Cardano-185x114.jpg" /> <p><!--summary start--> The events of the past few days have rocked the UK pensions world. We saw a sharp increase in gilt yields which led to a fire-sale of assets and liquidity squeeze just days after the new chancellor Kwasi Kwarteng announced his controversial mini-Budget. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/19675ea/a9263bbe-828d-4806-8718-b4a5a6a2169d/6/Rosenberg-Kerrin-Cardano-185x114.jpg https://www.professionalpensions.com/analysis/4057307/pensions-industry-dealt-ldi-crisis https://www.professionalpensions.com/analysis/4057307/pensions-industry-dealt-ldi-crisis https://www.professionalpensions.com/analysis/4057307/pensions-industry-dealt-ldi-crisis Fri, 30 Sep 2022 14:57:30 +0000 Trustees urged to keep 'foot to the floor' over LDI collateral sufficiency <img alt="Trustees urged to keep &#39;foot to the floor&#39; over LDI collateral sufficiency" src="https://www.professionalpensions.com/api/v1/wps/07696f2/495d306f-03e0-4972-9a12-9df8a87d6a02/2/Walker-David-Hymans-Robertson-2022-roi-1-185x114.png" /> <p><!--summary start--> There will be continued pressures on markets as schemes continue to liquidate assets to meet collateral calls and de-leverage their liability-driven investment (LDI) solutions, Hymans Robertson says. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/07696f2/495d306f-03e0-4972-9a12-9df8a87d6a02/2/Walker-David-Hymans-Robertson-2022-roi-1-185x114.png https://www.professionalpensions.com/news/4057262/trustees-urged-‘foot-floor-ldi-collateral-sufficiency https://www.professionalpensions.com/news/4057262/trustees-urged-‘foot-floor-ldi-collateral-sufficiency https://www.professionalpensions.com/news/4057262/trustees-urged-‘foot-floor-ldi-collateral-sufficiency Fri, 30 Sep 2022 09:07:00 +0000 BoE gilt market intervention gives 'breathing room' to embattled pension schemes <img alt="BoE gilt market intervention gives &#39;breathing room&#39; to embattled pension schemes" src="https://www.professionalpensions.com/api/v1/wps/8a011d0/57551bbd-7756-4d46-bcfa-0252dfea8da0/6/bank-of-england-2-185x114.jpg" /> <p><!--summary start--> The Bank of England (BoE) decision to intervene in the long-dated UK government bond market has stabilised the market and been broadly welcomed by investors. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/8a011d0/57551bbd-7756-4d46-bcfa-0252dfea8da0/6/bank-of-england-2-185x114.jpg https://www.professionalpensions.com/news/4057149/boe-gilt-market-intervention-‘breathing-embattled-pension-schemes https://www.professionalpensions.com/news/4057149/boe-gilt-market-intervention-‘breathing-embattled-pension-schemes https://www.professionalpensions.com/news/4057149/boe-gilt-market-intervention-‘breathing-embattled-pension-schemes Wed, 28 Sep 2022 14:31:05 +0000 Industry Voice: SI dilemmas — is 'E' or 'S' more important? <img alt="Industry Voice: SI dilemmas — is &#39;E&#39; or &#39;S&#39; more important?" src="https://www.professionalpensions.com/api/v1/wps/f2b0d85/c87dcc0c-28e7-4054-9c07-a1e918db3369/5/1343835070-1400-780px-185x114.jpg" /> <p><!--summary start--> Sustainable investing has become mainstream, but it’s not a perfect science, with many challenges that practitioners must face. <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/f2b0d85/c87dcc0c-28e7-4054-9c07-a1e918db3369/5/1343835070-1400-780px-185x114.jpg https://www.professionalpensions.com/sponsored/4049496/robeco-esg-si-dilemmas https://www.professionalpensions.com/sponsored/4049496/robeco-esg-si-dilemmas https://www.professionalpensions.com/sponsored/4049496/robeco-esg-si-dilemmas Tue, 17 May 2022 08:00:10 +0000 New research highlights consolidation could address key end game challenges for smaller DB schemes <img alt="New research highlights consolidation could address key end game challenges for smaller DB schemes " src="https://www.professionalpensions.com/api/v1/wps/c215930/e8ebd54c-1099-4a05-b284-cffcf4fd1abc/3/spencer-everett-wrrfbbd260m-unsplash-185x114.jpg" /> <p><!--summary start--> <!--summary end--></p> https://www.professionalpensions.com/api/v1/wps/c215930/e8ebd54c-1099-4a05-b284-cffcf4fd1abc/3/spencer-everett-wrrfbbd260m-unsplash-185x114.jpg https://www.professionalpensions.com/sponsored/4044939/research-highlights-consolidation-address-key-end-game-challenges-db-schemes https://www.professionalpensions.com/sponsored/4044939/research-highlights-consolidation-address-key-end-game-challenges-db-schemes https://www.professionalpensions.com/sponsored/4044939/research-highlights-consolidation-address-key-end-game-challenges-db-schemes Mon, 21 Feb 2022 07:00:35 +0000 Industry Voice Video: Using nature to offset emissions <p><!--summary start--> <!--summary end--></p> https://www.professionalpensions.com/sponsored/4040533/sustainable-hub-video-nature-offset-emissions https://www.professionalpensions.com/sponsored/4040533/sustainable-hub-video-nature-offset-emissions Wed, 17 Nov 2021 14:21:39 +0000 Industry Voice Video: Toughening up on carbon disclosure <p><!--summary start--> <!--summary end--></p> https://www.professionalpensions.com/sponsored/4040537/sustainable-hub-industry-voice-video-toughening-carbon-disclosure https://www.professionalpensions.com/sponsored/4040537/sustainable-hub-industry-voice-video-toughening-carbon-disclosure Wed, 17 Nov 2021 14:11:20 +0000 Tackling ESG risks in fixed income and LDI <p><!--summary start--> Addressing ESG risks has typically been easier in equities but there are many ways to do it in fixed income and LDI portfolios, writes Stephanie Baxter <!--summary end--></p> https://www.professionalpensions.com/feature/4028617/tackling-esg-risks-fixed-income-ldi https://www.professionalpensions.com/feature/4028617/tackling-esg-risks-fixed-income-ldi Wed, 17 Mar 2021 10:39:51 +0000 Current credit spreads well suited to LDI despite Covid-19 <p><!--summary start--> Schemes can tap into elevated illiquidity elements by incorporating global investment-grade credit into a liability driven investment (LDI) strategy, says Aon. <!--summary end--></p> https://www.professionalpensions.com/news/4015343/current-credit-spreads-suited-ldi-despite-covid-19 https://www.professionalpensions.com/news/4015343/current-credit-spreads-suited-ldi-despite-covid-19 Mon, 18 May 2020 11:56:11 +0000