UK - Investment consultants have welcomed a proposal from Henderson Global Investors to use a diversified growth portfolio for the £300m Henderson Group Pension Scheme.
However, the company said a final decision had yet to be made.
Commenting on the proposal, Andrew Cheseldine, a consultant from Hewitt, said: “We like diversified growth portfolios. The purpose of LDI is not always to get rid of risk but to manage it properly. A proportion of the risk budget can then be put into areas.”
In a good diversified growth fund, assets should not be heavily correlated, said Cheseldine.
Peter Hill-King, manager research consultant at Aon Consulting Limited, said it sounded as if Henderson Global Investors was adopting a sensible approach.
He said: “It is something a lot of our clients are looking at.”
David Morley, director of institutional business at Henderson Global Investors, said: “LDI is great if you want to lock down your liabilities. But as a fund manager we believe we can add value.”
Henderson Global Investors has three types of pension plan. These include a defined benefit plan, which closed to new members in 1999, a money purchase plan and several top-up plans for executives.
The first two plans together form the Henderson Group Pension Scheme.
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