Liability Driven Investment

Pension schemes increased their inflation hedging in the final quarter of 2020 as major issues were concluded in a “momentous geopolitical quarter”.

Pension schemes significantly heightened their interest rate and inflation risk hedging in the second quarter of the year, according to BMO Global Asset Management.

Over half of all UK defined benefit (DB) schemes have reduced their investment in equities over the last two years while diversifying into alternative growth assets, according to Aon.

The Pensions and Lifetime Savings Association (PLSA) has launched a guide for trustees on investing in patient capital and other illiquid investments.

Predictions that LDI flows could peak as soon as 2021 have led to hopes of higher gilt yields. However, Stephanie Baxter finds there are many variables at play.

More of the smallest defined benefit (DB) schemes are hedging inflation and interest rate risk using liability-driven investment (LDI) strategies thanks to more accessible and affordable solutions, XPS Pensions Group says.

A suite of liability driven investment (LDI) indices has been launched by STOXX and RiskFirst to aid trustees and consultants select, monitor and challenge managers.