Liability driven investment (LDI)

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The emergence of LDI-based funding strategies probably represents the most significant development in pension fund investment over the last 15 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.

Over a period 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.

Insight rank first for LDI overall quality, investment quality and service quality*

Our strategies

SEGREGATED LDI SOLUTIONS

A segregated approach to LDI often suits larger pension schemes looking for a flexible, capital-efficient solution that adapts to market changes. We tailor solutions to each client's specific needs. Our flexible partnership approach allows us to build close relationships with both our clients and their advisers, helping them design and implement highly effective solutions that evolve through time, reflecting market conditions as well as their changing requirements.

POOLED LDI SOLUTIONS

Insight has been offering active currency risk management for more than two decades and has a long-standing philosophy that currency risk is unrewarded and needs to be managed. Risk management expertise lies at the heart of both investment decision-making and the supporting infrastructure we have developed.

* Greenwich Associates' 2015 Evaluations by UK Investment consultants research. Results are based on interviews with 12 UK consultants evaluating LDI managers in 2015.