LIABILITY DRIVEN INVESTMENT (LDI)

Call our team on
+44 20 7321 1023

or email
Consultant Relationship Team

Liability Driven Investment (LDI)

Managing risk on both sides of the pension scheme balance sheet

The emergence of LDI-based funding strategies probably represents the most significant development in pension fund investment over the last ten years.

We are proud of the part that we have played in introducing clients to this new approach: helping them navigate new challenges and implement more effective and resilient long-term funding strategies.

Market turmoil at the turn of the millennium resulted in widespread funding deficits and revealed the extent to which conventional strategies were ineffective in controlling funding level volatility.  We were one of the pioneers of a new approach: making funding pension benefits the key objective, and then directly managing the risks associated with delivering that promise.  Our approach to LDI allows clients to have greater confidence that they will meet their funding objectives with less uncertainty, yet without compromising return or raising long-term funding costs.

In a decade in which pension liabilities grew more than 50%, adopting an LDI approach has given pension schemes the opportunity to at least match the growth in the value of their future benefit commitments.

* Greenwich Associates' 2014 Evaluations by UK Investment consultants research. Results are based on interviews with 13 UK consultants evaluating LDI managers in 2014.

INSIGHT RANK FIRST FOR LDI OVERALL QUALITY, INVESTMENT QUALITY AND SERVICE QUALITY*

CUSTOMISED LDI SOLUTIONS

Clients who have chosen to appoint Insight as their LDI partner include both corporate and public sector pension schemes and range in size from some of the smallest to the very largest.

We’ve structured our business around providing LDI solutions to our clients in the most effective and accessible ways possible. We help our clients build solutions that are tailored to reflect their unique requirements using either segregated accounts or our comprehensive range of pooled LDI funds.

Ongoing innovation
We are committed to ensuring that client solutions remain as relevant and effective as possible. Managing liability risk remains at the core of our innovative capabilities, however we have also broadened our offering significantly beyond this to reflect market opportunities and clients' broader needs. These extended capabilities frequently include the management of equity, credit, currency, property and longevity risk alongside clients' core liability risk management mandates.

Please note: the value of investments and any income from them will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested. Past performance is not a guide to future performance.

OUR CLIENTS CAN RANGE IN SIZE FROM THE SMALLEST TO THE VERY LARGEST