All Liability-driven investment (LDI) articles – Page 15
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Opinion
Concerns of rate rises is putting schemes off LDI
Schemes’ concerns that interest rates are going to rise is holding them back from derivatives-based LDI strategies, but this could be a mistake, argues Russell’s Sorca Kelly-Scholte, in the latest edition of Informed Comment.
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Features
PPF widens investment scope to reduce risk
The Pension Protection Fund has targeted a broader range of sophisticated fixed income assets while maintaining a liability-driven investment strategy in order to reduce the fund’s overall risk.
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Features
Pearl ups corporate bonds to manage rate risks
Pearl Group Staff Pension Scheme has increased its allocation to corporate bonds and reduced investment in growth assets to lower its exposure to fluctuations in the market.
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News
Three out of four schemes to mitigate volatility
The use of volatility-reducing strategies has increased as schemes look to dampen the impact of current market conditions on portfolios, according to investment data.
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Opinion
CofE scheme ups overseas property to reduce UK bias
Property constitutes 7.5 per cent of the Church of England pension fund’s growth assets, but its faith in overseas markets in particular has led it to target a 10 per cent allocation.
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NewsAlternative assets hit plateau due to 'idea fatigue'
European schemes' interest in alternative assets has ceased its upward climb, with no improvement in uptake from last year, according to survey data.
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Opinion
10 years of LDI – how it can benefit your scheme
While the idea that pension fund cash flows could be matched by bonds is not itself new, the explosion of credit markets has created new instruments with which we can build even more precise hedges.
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FeaturesCadbury hedges fifth of assets to manage risk
Cadbury Pension Fund has decided to hedge approximately a fifth of its assets to manage the impact of interest rate and inflation changes on its pension promises.
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Features
How Selex secured an £18.6m swaps boost
The Selex Galileo Pension Scheme has seen an increase in the value of its swaps contracts from £6.2m to £24.8m in the year to April as a result of interest rate movements.
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FeaturesIndex-linked assets valued in low gilt yield environment
In this edition of Investment Blueprint, Aviva Investors’ Chris Laxton looks at the various options for schemes seeking to hedge their inflation liability through index-linked assets such as housing and infrastructure.
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FeaturesWHSmith doubles surplus through LDI hedging
The newsagent’s pension scheme has managed to double its accounting surplus through its liability-driven investment strategy, following continued low interest rates.
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FeaturesSchemes warned to keep an eye on illiquid assets
Schemes such as British Coal are closely managing their liquidity risk to ensure they are not locking away too much cash in hard-to-sell investments such as private equity and infrastructure.
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Features
Survey: Schemes shun traditional fixed income assets
In our second feature revealing the survey insights of 44 leading schemes and trustees, Owen Walker hears their two-year plan for fixed income investing.
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Features
Alternatives replacing equities to protect big funds
Schemes have taken advantage of alternatives to protect themselves from stock market volatility, with The Pensions Trust and GEC funds already benefiting from this approach.
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FeaturesFollow Australia for higher infrastructure allocations
Comment: UK pension schemes need to follow their antipodean counterparts, with higher infrastructure allocations justified by the asset’s stable, long-term revenues, argues AMP Capital’s Richard Shields.
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Features
Consultant survey: Fixed income reappraised post-2008
In the first of four special reports, we look at how the UK’s leading investment consultants have changed their views of fixed income since the financial crisis.
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Features
PPF levy dilemma for small schemes
The Pension Protection Fund’s new levy framework is likely to lead to schemes derisking, but smaller schemes with sophisticated investment strategies may lose out, consultants have warned.