All Liability-driven investment (LDI) articles – Page 14
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FeaturesCaterpillar trims active equities to fill LDI buffer fund
Caterpillar Pension Plan has cut its active equity exposure and plans to sell out of property as part of a trigger-based derisking strategy to boost its liability-driven investment portfolio.
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Opinion
How to set up your scheme’s derisking strategy
In the latest edition of Technical Comment, Quantum’s Rob Davies explains how to set a derisking strategy that makes well-timed investment decisions that provide good value to the scheme.
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News
Schemes plough £24bn into gilts despite low yields
Pension schemes compelled last year to derisk at historically low yields quadrupled the previous year’s gilt purchases, according to official data that have left investment experts surprised.
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Features
Small schemes see LDI market opening up as pooled funds grow
Small and medium-sized pension funds are coming around to liability-driven investment strategies, with pooled funds providing half the growth in the number of mandates last year as the LDI market exceeded the £500bn mark.
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News
Daily Mail grabs alternative inflation linkage in place of pricey gilts
The Daily Mail and General Trust pension fund has used alternative assets to provide inflation linkage, after demand and monetary policy drove up the cost of using gilts to mitigate inflation risk.
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Opinion
A scheme guide to swaps, swaptions and all things LDI
Axa IM’s Jonathan Crowther gives a ground-up description of the derivatives that liability-driven investment managers use to mitigate against key funding risks, in the latest edition of Technical Comment.
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Features
BAA picks long-lease property as schemes hunt inflation linkage
BAA Pension Scheme has allocated £100m to long-lease property, as defined benefit schemes continue to invest in the asset class to act as a long-dated inflation hedge, consultants have said.
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Opinion
Why you shouldn’t sit on your hands waiting for a rate rise
Talking head: Redington’s Rob Gardner warns of the significant risk and complexity created by rate uncertainty, and how pension funds can get the right infrastructure in place.
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News
Schemes up proxy matching assets to avoid low-yield bonds
Schemes are seeking proxies for traditional matching assets, investment data have shown, as low yields in fixed income make some investors reticent about implementing liability-driven investment strategies.
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News
Schemes face LDI rethink to meet Emir collateral demands
Industry experts have warned that schemes using liability-driven investment strategies may face higher costs and additional risks when the European Market Infrastructure Regulation’s collateral diversity requirements come into force.
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News
LDI struggling to penetrate medium and smaller-sized schemes
Liability-driven investment strategies are struggling to gain ground outside larger schemes, with regulatory data indicating just one in 17 medium-sized plans have implemented hedging strategies.
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News
Surrey looks to lock in gains as funding level rises
Surrey County Council Pension Fund is exploring derisking strategies after its assets made further gains against liabilities since its 2013 triennial valuation.
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Opinion
Why your biggest investment risk is ignoring your liabilities
Talking head: Investment columnist Rob Gardner looks at whether equities or bonds are looking better value for UK pension funds, and argues context is vital.
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Opinion
What assets have been substituted for low-yielding gilts in LDI programmes?
Barker Tatham's Steve Barker, PTL's Richard Butcher, Spence's Marian Elliott, Legal & General Investment Management's Laura Brown, Axa Investment Managers' Jonathan Crowther and Redington's Dan Mikulskis discuss LDI asset allocation.
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NewsBP fund moves to guard against covenant risk
BP Pension Scheme has formalised a derisking framework with its sponsor to dampen covenant, asset value and investment risks, delegates at the National Association of Pension Funds’ investment conference 2014 heard last week.
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Features
How do you approach LDI with schemes that do not already have it in place?
Barker Tatham's Steve Barker, PTL's Richard Butcher, Spence's Marian Elliott, Legal & General Investment Management's Laura Brown, Axa Investment Managers' Jonathan Crowther and Redington's Dan Mikulskis discuss schemes' first steps in the market.
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NewsDerivatives regulation leaves schemes liable for manager reporting
News analysis: Trustees could be found liable for their investment managers not reporting derivative trades under extended derivatives regulation, with legal experts recommending reviewing contracts to hard-code duties.
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News
Small schemes warming to derisking face challenges
Smaller schemes are becoming more interested in derisking strategies, a survey has found, but may be holding off on implementation due to a lack of resources.
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News
BA uses triggers to grab derisking opportunities
British Airways’ New Airways Pension Scheme has implemented a liability-hedging framework aiming to capture outperformance, as schemes take a more opportunistic approach to derisking.
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News
Scheme confidence drives LDI take-up
News analysis: Three-quarters of UK defined benefit pension schemes are using or planning to use liability-driven investment strategies, as increasing delegation is encouraging more complicated approaches.